Ondas Holdings Inc. (NASDAQ: ONDS) shares fell 5.34% in pre-market trading on Friday, extending the previous day's losses despite recently reported strong third-quarter results. This continued downturn follows a volatile Thursday session where the stock initially surged by 31.58% before reversing course and ending the day down 5.49%.

The company's Q3 performance had initially sparked investor optimism, with revenue soaring 582% year-over-year to $10.1 million, surpassing analyst estimates of $7.039 million. Ondas also narrowed its net loss to $0.03 per diluted share, beating expectations of a $0.05 loss. Furthermore, management raised its full-year 2025 revenue guidance from $25 million to at least $36 million.

Despite these positive fundamentals, the stock's inability to maintain gains and its continued decline in pre-market trading suggest that investors may be engaging in profit-taking or reacting to broader market trends. The sharp reversal and subsequent plunge highlight the volatile nature of small-cap stocks, even in the face of encouraging financial results. As the market opens, investors will be watching closely to see if Ondas can reverse this downward trend or if the selling pressure will persist.