This week painted a stark picture of divergence within the technology sector. While established software behemoths grapple with legal challenges and skeptical investors, smaller, agile firms in the defense and aerospace niches are aggressively pursuing growth through partnerships and acquisitions.
Ondas Holdings Forges European Defense Alliance
The most striking development came from Ondas Holdings. On March 18, the company announced the formation of a joint venture with Heidelberg, named ONBERG Autonomous Systems. The JV’s mission is to manufacture and market autonomous drone defense and security systems for Germany and Ukraine. ONBERG plans to develop Heidelberg’s site in Brandenburg an der Havel into a center of excellence for autonomous defense systems, initially focusing on the Iron Drone Raider and ISR platforms. CEO Eric Brock framed the partnership as a strategic move to localize production within allied nations.
The company’s preliminary results surpassed its own forecast. Fourth-quarter revenue is estimated between $29 and $30 million, bringing the total for 2025 to approximately $50 million. Management reaffirmed its 2026 revenue guidance of $170 to $180 million, with final figures due in the annual report on March 25. Despite the news, shares retreated over 6% on Friday to close at €8.73. However, the stock’s twelve-month performance remains remarkable, showing an increase of over 1,200%. Notably, the short interest recently jumped by nearly 42% to 25.8% of the free float, indicating significant bearish bets.
SAP Shares Hit Annual Low Amid Legal Onslaught
The Walldorf-based software giant SAP finds itself under pressure on multiple fronts. A $480 million settlement payment to Teradata, ongoing investigations by the U.S. Department of Justice into potential overbilling, and the threat of class-action lawsuits are weighing heavily on the stock. Shares closed Friday at €152.80—a new 52-week low and nearly 44% below the peak reached last June.
The allegations are serious. The law firm Portnoy Law has accused SAP and its executives of violating ethical standards in billing U.S. government agencies. Concurrently, skepticism is growing regarding the company’s AI strategy, with many users finding the Joule assistant has yet to deliver compelling added value. Since the start of the year, the equity has lost nearly a quarter of its value. Nevertheless, a majority of analysts maintain buy recommendations, with an average price target of around $300—far above the current level. Institutional investors appear less convinced, with significantly more major shareholders reducing their positions than adding to them in the most recent quarter.
Oracle’s Cloud Strength Meets Investor Caution
Oracle’s operational performance is stronger than its share price suggests. In the third quarter of fiscal 2026, total revenue increased 22% to $17 billion. The cloud infrastructure unit surged 84% to a record $5 billion.
The market has not rewarded this growth. At €129.46, the stock trades roughly 54% below its September 2025 high. The reason: massive investments in AI infrastructure are compressing margins. Investors fear the high expenditures will only bear fruit after a significant delay.
Analyst opinions are mixed:
* J.P. Morgan upgraded the stock to Overweight with a $210 target, arguing the over 55% decline has significantly improved the risk-reward profile.
* Barclays maintained its Overweight rating but cut its target from $310 to $230, citing expected margin pressure.
* Mizuho reduced its target to $320 but kept an Outperform rating, signaling belief in the long-term cloud narrative.
The wide range of price targets, from $210 to $320, reflects uncertainty about the return on Oracle’s investments.
Should investors sell immediately? Or is it worth buying SAP?
Volatus Aerospace Graduates to Senior Exchange
Friday marked a milestone for Canadian drone and aviation specialist Volatus Aerospace, as its shares moved from the TSX Venture Exchange to the main Toronto Stock Exchange. This transition is expected to significantly improve access to institutional and international capital.
The uplisting caps a week of positive announcements:
* NRC-IRAP Funding: Secured up to C$320,000 in non-dilutive funding for development of the Condor XL heavy-lift drone system, capable of transporting 180 kilograms over 200 kilometers.
* Synergy Aviation Acquisition Completed: Volatus now holds 100% of the commercial flight division after acquiring the remaining 41.5% stake.
* TSX Venture 50: Ranked 16th overall and in the Top 3 in the technology sector, following a 279% share price gain in 2025.
One analyst places the fair value at C$1.00, well above the current price of approximately C$0.61. Achieving profitability remains a challenge; the company needs to generate quarterly revenues between C$13 million and C$17 million to reach breakeven.
Diginex: Operational Momentum Versus Market Collapse
ESG RegTech specialist Diginex presents the week’s most extreme contrast. Operationally, activity is frenetic: a four-year, $40 million reseller agreement with Resulticks; the completed acquisition of carbon accounting specialist Plan A, which brought Visa and Deutsche Bank on board as new shareholders; and the appointment of Lubomila Jordanova as CEO all point to ambitious expansion.
The share price tells a different story. Since its October 2025 high, the stock has collapsed by nearly 99%, now trading near its 52-week lows around $0.57. Market capitalization shrank by over 40% in one month. With a negative P/E ratio of approximately -13, the valuation reflects persistent losses. The only active analyst rating is a Sell, with no published price target. Diginex must now convert its growing acquisition pipeline into visible revenue, a process expected to take several reporting cycles.
Sector at a Crossroads
The contrasting fortunes of these five companies highlight a clear fault line. SAP and Oracle—firms with market capitalizations in the hundreds of billions—are contending with valuation resets, regulatory pressure, and questions about the payoff from their AI investments.
On the other side, Ondas and Volatus are leveraging geopolitical demand for autonomous defense systems as a growth engine, relying on partnerships, government funding, and strategic acquisitions. Diginex is attempting a similar build-up strategy in the ESG space, though the market has so far refused to reward its operational activity.
In the coming weeks, attention will focus on Ondas’s final annual report on March 25 and the speed at which the ONBERG JV secures initial orders. For SAP, developments in the DOJ investigation will be a key driver. Oracle must demonstrate that its cloud growth justifies the investment costs, making its next quarterly results a crucial test.
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