![]() ![]() This means traders believe AgEagle has the potential to grow to make hundreds of millions in just a few years, allowing for further growth of their investment. At the same time, AgEagle has used its newly acquired market cap to go on a buying spree, acquiring two long-time drone businesses – Measure and MicaSense. A Look at AgEagle’s Legacy BusinessĪgEagle has been trading at 700-800x its annual revenues, with a market cap surpassing $900 million before the fraud allegations. We’ll take a look at AgEagle’s business, what concerns we have, and lastly what the broader ramifications are for the industry. AgEagle began as a hardware/software play in the agriculture imaging market before more recently pivoting to the much hyped drone delivery space. Drone for imaging applications is a market that delivered over 2 million drones last year, while the delivery and AAM space is slated to receive billions in investments for firms in the test phase with no proven market for their services.ĪgEagle is particularly interesting in telling this story of disparate worlds between the drones that investors envision and what is the market today. That is far from the truth, as the majority of the industry today is focused on professional photography/cinematography or delivering data for businesses and agencies. Put together this may lead the general public to believe the value of drones is in delivering packages or people. Media organisations are quick to cover the movements of Amazon’s goal to provide drone deliveries by 2019(!!), geopolitical drama as industry giant DJI is caught in US-China tensions, hype for short-range passenger/delivery drones and, often unconfirmed, sightings of drones near airports. However, how many perceive where the value of drones actually exists is heavily influenced by the news they read. The drone industry is understandably seen as a new tech space with near-unlimited potential. This article won’t look into the specific fraud allegations or offer investment advice, but instead I would like to take this opportunity to elaborate on AgEagle’s situation and business prospects to help close what I see as an information gap between drone industry veterans and the general public. Both stocks have soared over the past year as investors bought into the drone industry hype during a historically bullish market – AgEagle rising from less than $0.5 to nearly $15 and EHang from $10 to $120. Last week EHang and AgEagle, two companies in the still nascent Advanced Air Mobility (AAM) space, faced fraud accusations by short sellers ( EHang | AgEagle). Recent Accusations of Fraud Raise the Larger Question about Investing in the Drone Industry ![]()
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