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DroneShield stock: Why are short sellers piling in?

The article from MSN discusses the increasing interest of short sellers in DroneShield, an Australian company specializing in counter-drone technology. Despite DroneShield's recent success in securing significant contracts, including a $33 million deal with the U.S. Department of Homeland Security, its stock has experienced a notable decline. The stock price dropped by 20% in a single day, and over the past year, it has fallen by 60%. This downturn has attracted short sellers, with short interest now accounting for 10.5% of DroneShield's float. The skepticism from investors seems to stem from concerns over the company's ability to meet its ambitious revenue targets, which are set to increase dramatically from $5.9 million in 2023 to $45 million in 2024. Additionally, the article mentions that DroneShield's shares are trading at a high price-to-sales ratio, suggesting that the market might be overvaluing the company's future growth prospects.

Read the Full MSN Article at:
[ https://www.msn.com/en-au/technology/general/droneshield-stock-why-are-short-sellers-piling-in/ar-BB1rl0tA ]