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  5. PNG: What's happening with Kraken? [Kraken Robotics Inc.]
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Investment Q&A

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Q: What's happening with Kraken? It drops every day now. Was the big run up all for getting top price for raising money to make their purchase? What do you see for Kraken over the next 6 to 12months? How do you think the stock will perform over this period? What catalysts will make it move? Finally, are you still bullish on it?
Asked by preston on May 11, 2026
5i Research Answer:

We have some comments posted here.

Its recent performance is likely a combination of factors: anticipation that geopolitical tensions have peaked and are beginning to decline, price consolidation/profit-taking in the defense industry, and many high-growth, non-AI-adjacent stocks seeing pullbacks as investors likely pull money from winners and into the AI hardware space (rotation). 

Overall, it is up over 190% in the past year, up 6% year-to-date, and the upward long-term trend is still intact. We don't feel anything is fundamentally broken here, more so a confluence of events that are historically typical for the financial markets (rotation, profit-taking, sentiment/narrative). The long-term secular themes of subsea battery tech, autonomous underwater drones for offshore energy and defense are still there, and we think PNG is a leader in that space.