Sometimes good news just isn't enough. Ondas Holdings Inc. (ONDS) shares are tumbling Monday afternoon despite announcing what should be a headline-worthy win: an $8.2 million contract from a major European security agency.

The Deal Details

The contract will deploy multiple Iron Drone Raider counter-UAS systems to protect one of Europe's largest airports. It's a significant validation of Ondas's critical infrastructure defense technology and marks another step in the company's European expansion.

This comes on the heels of a spectacular third-quarter report last week that sent the stock soaring. Ondas reported a 582% year-over-year revenue increase to $10.1 million, primarily driven by its autonomous drone segment. That kind of growth doesn't show up every day.

Buoyed by that performance, management raised its full-year 2025 revenue guidance to between $25 million and $36 million. The company also disclosed a $23.3 million backlog, suggesting the pipeline remains healthy.

So Why the Selloff?

Monday's decline appears driven less by company-specific concerns and more by macro headwinds hitting the broader market. Persistent inflation has prompted increasingly hawkish comments from Federal Reserve officials, essentially crushing hopes for near-term rate cuts. Tech-heavy indices and growth stocks have been particularly vulnerable to this shift in sentiment.

For a high-growth name like Ondas that surged dramatically last week, profit-taking amid broader market volatility makes sense even when the fundamental news remains positive.

Momentum Metrics

According to market data rankings, ONDS stock exhibits extremely high momentum with a score of 99.74, reflecting last week's explosive rally that Monday's decline is partially unwinding.

Price Action: Ondas Holdings shares were down 15.25% at $6.08 at the time of publication Monday.