Breakfast News: Defense Rally Skips AeroVironment

Breakfast News: Defense Rally Skips AeroVironment

March 3, 2026

Source: Image created by Jester AI.

1. AVAV Sinks 17% on Contract Risk

AeroVironment (AVAV +4.10%) closed 17.4% lower yesterday despite other defense companies rallying, with Space News reporting the U.S. government is reopening a contract that AeroVironment is currently supplying.

• Potential for large loss of business to other bidders: The Satellite Communications Augmentation Resource (SCAR) program currently has AeroVironment as the main antennas manufacturer, with the program worth $1.7 billion in total contract value.
• Bucking broader sector trend: The short-term move in the longtime Rule Breakers recommendation was in contrast to the 17.3% spike in drone specialist Red Cat (RCAT +2.19%). Fresh strikes in the Middle East pushed S&P 500 and Nasdaq futures down over 1.5% this morning.

2. Apple Taps Budget Market with $599 iPhone 17e

Apple (AAPL 0.96%) teased new product releases, including the iPhone 17e and new iPad Air models, as part of the lead-up to the planned product launch on Wednesday, as the company aims to appeal to more price-conscious consumers.

• Base price of the iPhone 17e expected to be $599: The cheaper entry point does come at the cost of only having a single rear camera and a smaller display than the normal iPhone 17. The new iPads will contain the latest M4 processor.
• **“Apple isn’t an AI company. Not yet, anyway”: **Fool analyst Tim Beyers spoke about the hardware push last month, saying “this business is about putting more iPhones in the hands of people around the world, and then getting them to pay for backup in iCloud.”

3. ONON Dips Over 10% as 2026 Sales Guide Trails

On Holding (ONON 4.40%) fell more than 11% in pre-market trading after guidance attached to full-year results fell short of expectations, although fourth-quarter earnings beat analyst projections.

• “On is uniquely positioned to deliver what this discerning consumer demands”: Co-founder and executive chair David Allemann spoke about the shift in people replacing traditional markers of status with healthier desires, saying On is able to capitalize on this in coming years.
• Net sales for 2026 expected to grow by 23%: Despite aiming for double-digit percentage growth for the coming year, analysts had forecast higher, with some concerns On could be starting to plateau. The stock is narrowly trailing the S&P 500 by 3% since the February 2024 _Rule Breakers _rec.

4. What to Watch With Tuesday Earnings

• CrowdStrike (CRWD +0.74%) releases earnings after the market closes, with investors watching for signs of further growth in AI-driven security solutions revenue like last quarter.
• **Target **(TGT +0.36%) jumped 3.5% ahead of the opening bell despite reporting its 13th consecutive quarter of weak or falling sales, as the company said traffic and transactions have started to pick up. This bodes well for growth in 2026.
• **Sportradar **(SRAD 3.53%) also reports ahead of the market open. More commentary around recent partnerships with NBC Sports and the expanded deal with Betfred should help to guide the financial outlook for the coming year.

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