Mobix Labs Inc. (MOBX) stock is trading lower on Friday. The downward pressure stems primarily from traders taking profits following a massive rally during the previous session.

The Nasdaq is down 2.09% while the S&P 500 has shed 1.01%.

Defense Drone Deal Sparks Rally

Thursday's surge followed Mobix Labs' announcement that it signed a binding letter of intent to acquire Vision Aerial, a Montana-based manufacturer of U.S.-built drones.

The proposed acquisition would expand Mobix Labs into the fast-growing drone and aerial intelligence market, a sector benefiting from rising defense spending and restrictions on certain foreign-made drones.

Vision Aerial's customer roster includes the U.S. Air Force, U.S. Navy, USDA Forest Service and L3Harris Technologies, Inc. (LHX), providing Mobix Labs with exposure to established government and defense relationships.

Mobix Labs CEO Calls Acquisition A "Defining Move"

Mobix Labs said the deal would combine Vision Aerial's drone platforms with its existing expertise in advanced electronics, connectivity and radio-frequency technologies.

"This is a defining move for Mobix," CEO Phil Sansone said Thursday. "We are moving to acquire a proven, American-built drone platform trusted by the U.S. Air Force, the U.S. Navy, and major industry customers, just as demand for secure, high-performance drones accelerates around the world."

MOBX Technical Levels To Watch

From a trend perspective, MOBX is still in a bearish structure: it's trading 4.6% below its 20-day SMA ($2.23), 19.6% below its 50-day SMA ($2.64), and 58% below its 200-day SMA ($5.06). The 20-day SMA is also below the 50-day SMA, and the 50-day SMA is below the 200-day SMA—two bearish crossover signals that usually describe a market that's still trying to repair damage rather than start a clean uptrend.

Momentum is more "neutral-to-cautious" than washed out, with RSI at 45.36. RSI measures how stretched a move is, and readings in the mid-40s typically suggest neither strong accumulation nor capitulation—often a setup where price can keep chopping lower unless buyers reclaim key levels.

• Key Resistance: $2.23 — the 20-day SMA is overhead and often acts as a near-term "line in the sand" during downtrends
• Key Support: $1.30 — the 52-week low is the major downside reference if selling pressure accelerates

MOBX Stock Price Activity: Mobix Labs shares were down 3.18% at $2.14 at the time of publication on Friday, according to market data.

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