Swarmer (SWMR) stock surged more than 1,000% in just two days after its IPO before pulling back sharply on Thursday, as retail investors piled into the drone software company founded in 2023 during the Ukraine conflict.
Swarmer, Inc Common Stock, SWMR
The company priced its IPO at $5 per share on Monday, raising $15 million. By Tuesday’s close, the stock was at $31 — a 520% jump on its first day of trading. Wednesday saw it climb further to $55.
On Thursday morning it touched $61 before sliding to around $50.75 by midday, a drop of about 7.7%. The broader market was also lower, with the S&P 500 down 0.4% and the Dow off 0.6%.
The volume numbers are striking. More than 34 million shares have changed hands — yet the company only sold 3 million shares in its IPO. That means the average IPO share has swapped hands more than 10 times over, a clear signal that short-term traders are driving the action.
At Wednesday’s closing price, Swarmer’s market cap sat at around $675 million. Its 2025 revenue was just over $300,000, putting the price-to-sales ratio at roughly 2,250. By any traditional measure, that’s an extreme valuation for a company at this stage.
Swarmer builds software that allows drones to operate even when GPS or other communications are disrupted. The platform is designed to work across different drone models, and the company has its roots in Ukraine, where it was founded in 2023 during an active war zone.
Its current order backlog stands at more than $30 million. The $15 million raised in the IPO is earmarked for growth, and with a cash burn of roughly $700,000 per month and a total cash balance of around $25 million, the company has some runway.
That said, it lost more than $8.5 million last year and faces competition from both large and small defense contractors that also offer drone operating software.
The buying wave has been largely retail-driven. Ian Winer, founder and CEO of Center15 Capital, a growth-stage investor in private defense tech companies, noted the surge reflects individual investor interest in defense technology. But he was measured in his assessment.
“It certainly speaks to retail interest in the new domains of warfare,” Winer said. “That said, I don’t consider it in the same class as the top private defense tech companies.”
Part of the move has also been fueled by short sellers getting squeezed. Traders who bet against the stock were forced to buy back their positions as the price surged, adding fuel to the rally.
There are currently no Wall Street analysts covering Swarmer, according to FactSet. Analyst coverage typically brings with it more detailed financial modeling and direct access to management, which helps institutional investors get comfortable.
For now, the stock has no formal price targets and no earnings estimates from the Street. Thursday morning, it hit $61 before retreating back below $52.
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