Critical Report on Ondas (ONDS) Precedes Defense Unit's $30M Contract in Israel

Ondas Inc. (NASDAQ:ONDS) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, Ondas Inc. (NASDAQ:ONDS) announced that its subsidiary 4M Defense has secured a multi-year demining contract in Israel valued at more than $30 million. The contract, which has an initial execution period of up to three years, covers about 741 acres along the Israel-Syria border and is described as one of the largest land-clearance initiatives ever undertaken in Israel.

Meanwhile, on February 4, JCapital Research issued a critical report questioning the company’s business model and financial sustainability. While JCapital Research did not issue an overt rating on the stock, the research firm argued that Ondas could struggle to sustain its hype due to concerns about its revenue growth strategy. JCapital criticized Ondas for pursuing “high-priced, money-losing acquisitions funded by massive share dilution,” claiming that the company is buying its way into military contracts for nosebleed prices without demonstrating a clear path to profitability.

Ondas Inc. (NASDAQ:ONDS) provides autonomous systems and private wireless solutions through its business units. The company’s Ondas Autonomous Systems division delivers AI-powered defense and security platforms, while Ondas Networks offers software-defined wireless broadband technology.

While we acknowledge the potential of ONDS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.