Unusual Machines (UMAC +0.68%) stock is soaring higher in Thursday's trading. The company's share price was up 47.4% as of 11:10 a.m. ET. The stock had been up as much as 56% earlier in the day.
Unusual Machines' valuation is skyrocketing thanks to a recent report from The Wall Street Journal stating that the Trump administration is weighing funding deals with some U.S. drone companies. As of this writing, the stock is now up roughly 116% year to date.
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Investors think Unusual Machines could win government funding
According to The Wall Street Journal's recent report, the U.S. government is looking to bolster domestic drone technologies and is looking to invest directly in some companies in the space. Unusual Machines was named in the report as one of the defense industry companies that is being considered for the funding project. Other companies named as potential funding candidates in the report include Performance Drone Works and Neros Technologies.
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What's next for Unusual Machines?
The U.S. government has recently taken steps to invest in semiconductors, quantum computing, and other areas considered vital for the country's national defense and economic interests. Given the rising importance of drones in warfare and the report suggesting the government is interested in funding growth for domestic drone tech, there seems to be a good chance that Unusual Machines will receive significant government investment. In addition to providing the company with a new source of funds it can use to drive growth, a direct investment partnership bodes well for the business's chances of winning substantial government contracts.
