"With all the hype around drones lately, which companies actually have the contracts and backlog to back it up long-term? AVAV keeps coming up, but the valuation is hard to stomach. Commenters pushed back and forth on whether AeroVironment's military relationships and $1.1 billion backlog justify the premium, or whether margin compression makes the risk/reward unattractive at current levels."
"AVAV has a $990M Switchblade contract and record backlog. The dip is a gift. March earnings will be the catalyst. The thread's sentiment score of 90 out of 100 on February 19 reflects how that bullish framing landed with that community, demonstrating strong conviction among retail investors regarding the company's defense sector positioning."
AeroVironment (NASDAQ:AVAV) has experienced a 3% weekly decline and 17% monthly decline in stock price, yet Reddit sentiment has strengthened, with the company's proprietary score rising from 64 to 72 weekly. The positive sentiment shift stems from contract wins, new analyst coverage, and anticipation of the March 10 Q3 earnings report. Reddit discussions show a maturation from speculative hype toward fundamental analysis, with r/stocks debating whether AeroVironment's $1.1 billion backlog and military relationships justify current valuations amid margin compression concerns. Meanwhile, r/wallstreetbets maintains high conviction, viewing the stock dip as an opportunity and the March earnings as a key catalyst.
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