Peraso Inc. (NASDAQ:PRSO) drops premarket on Monday after surging 151.66% Friday on a drone identification system selection.



Nasdaq futures are down 1.09%. S&amp;P 500 futures have shed 1.13%.



<h2>What Triggered Friday’s 151.66% Rally</h2>



The catalyst was a major contract announcement. Peraso’s 60 gigahertz mmWave technology was selected for a next-generation drone identification system.



Israeli defense contractor InTACT chose Peraso’s proprietary semiconductor devices for the project. The system targets highly contested electronic warfare environments. It enhances the security and operational performance of military drones.



<h2>Technical Analysis</h2>



Despite today’s drop, Peraso’s stock has shown remarkable resilience over the past year, with a 12-month gain of 162.38%.



The stock is currently trading well above its key moving averages, including 114.3% above its 20-day Simple Moving Average (SMA) and 87% above its 100-day SMA. This positioning suggests a strong bullish trend over the medium term, despite short-term volatility.



The technical indicators present a mixed signal. The RSI is currently at 86.36, indicating that the stock is in the overbought territory, which could signal a potential pullback or consolidation phase.



<h2>Earnings &amp; Analyst Outlook</h2>



The countdown is on: Peraso is set to report earnings on March 23.



<ul>
<li>EPS Estimate: Loss of 12 cents (Down from 13 cents YoY)</li>



<li>Revenue Estimate: $3.13 million (Down from $3.68 million YoY)</li>
</ul>



The stock carries a Buy Rating with an average price target of $3.38.



PRSO Price Action: Peraso shares were down 5.88% at $1.90 during premarket trading on Monday, according to Benzinga Pro data.



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Peraso Inc. (NASDAQ: PRSO) saw a 5.88% drop in premarket trading on Monday after a significant 151.66% surge on Friday due to a contract for a drone identification system. The stock has shown resilience with a 12-month gain of 162.38%, although it is currently in overbought territory. Peraso is set to report earnings on March 23, with an EPS estimate of a loss of 12 cents and revenue of $3.13 million. The stock maintains a Buy Rating with a price target of $3.38.

Peraso Stock Cools Off After 151% Drone Defense Contract-Driven Rally