Kraken Robotics Stock Is Down 55% -- Is September the Month to Buy the Dip?
2026-09-05 16:02
•Keith Noonan •The Motley Fool
••••••• •• Axe Cap view
Is Kraken Robotics’ 55% Drop a Buying Opportunity?
After a steep fall, Kraken Robotics offers a long-term story but still carries short-term risks.
Kraken Robotics has taken a big hit since March, down 55%, largely due to worries over integrating its Covelya acquisition and a modest 4% revenue growth in Q2. This is not your typical tech stock surge—Kraken's revenues are lumpy and heavily weighted to the final quarter, making short-term predictions tricky. Their partnership with Anduril on underwater drones and new contracts hint at strong growth ahead, but these catalysts need time to materialize. Globally, semiconductor giants like Nvidia and Micron are showing the kind of earnings momentum Kraken lacks right now. For South African investors, the direct play here is weak, as Kraken isn’t JSE-listed and doesn’t translate easily into rand moves or a local sector. However, a weaker USD/ZAR could make a future investment more attractive if the global tech and defense sectors regain confidence. The risk is that integration hiccups persist and revenue growth stalls, forcing the share price down further. this is just our opinion and not financial advice
For SA investors, this is a ‘watch’ call rather than buy—the story has promise but needs clearer signs of revenue delivery. Wait for Kraken to prove that integration issues are behind before committing capital.
- USD/ZAR
- Kraken Robotics (non-JSE)
- Acquisition integration delays
- Quarterly revenue weakness
4/10
Kraken Robotics stock has plummeted 55% from its March 2026 peak due to concerns about its Covelya acquisition integration and modest Q2 growth of just 4% year-over-year. While near-term visibility remains limited with heavy revenue weighting toward Q4, the company has strong long-term growth catalysts including production ramps with Anduril's underwater drone platforms and new customer contracts, potentially offering an attractive entry point for patient investors.
Our take is based on reporting first published by The Motley Fool.
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