Time to get greedy with DroneShield stock?

DroneShield Ltd (ASX: DRO) stock has been under pressure.

Since this time in January, the counter-drone technology company’s shares are down almost 33%.

That is a meaningful fall for one of the ASX’s most talked-about growth shares. It also raises an interesting question.

Is it time to get greedy?

I think it could be for investors who understand the risks.

Why the selloff could be an opportunity

DroneShield is not a stock for cautious investors.

Its share price can move sharply, expectations are high, and the company operates in a fast-moving defence technology market where contract timing can be uneven.

There is also a new issue for investors to consider.

Last week, DroneShield announced that it had received a notice from ASIC requiring the company to provide reasonable assistance in connection with an investigation. 

The investigation relates to announcements and information provided to the ASX in November 2025 and trading in DroneShield shares during the same month. DroneShield said it will cooperate fully, and that it is not clear what action, if any, may result.

That should not be ignored. Governance and disclosure issues can weigh on confidence, especially when a stock has already enjoyed a huge run in recent years.

But I also do not think the investigation should distract investors completely from the long-term opportunity.

The long-term theme still looks powerful

DroneShield develops technology to protect against drones and autonomous systems. Its customers include military, intelligence, government, law enforcement, critical infrastructure, and airports.

I think that market has a long way to grow.

Drones are becoming cheaper, more capable, and more widely used. They can be deployed for surveillance, disruption, targeting, smuggling, and attacks on critical infrastructure.

That creates a problem for governments, defence forces, airports, prisons, energy assets, and event operators.

DroneShield is trying to solve that problem with detection, tracking, electronic warfare, and artificial intelligence (AI)-enabled counter-drone systems.

Recent updates also show the company is busy building out its ecosystem. DroneShield has announced work with Overland AI to integrate counter-UAS capability with an autonomous ground vehicle, and a memorandum of understanding with Terma focused on layered counter-UAS capabilities.

Foolish takeaway

DroneShield has real risks. The ASIC investigation needs to be watched, the share price is likely to stay volatile, and investors should expect bumps along the way.

But the counter-drone opportunity still looks compelling to me.

If drones continue reshaping modern security and defence planning, companies that can help detect and respond to those threats could become far more important over time.

After a 33% fall, I think DroneShield stock is starting to look like the kind of higher-risk opportunity where it may pay to be greedy while others are stepping back.

The post Time to get greedy with DroneShield stock? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.