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Red Cat: Buy Any Drone Dip

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  • Red Cat's post-earnings dip presents a buying opportunity, despite missing FQ2 revenue estimates and the CFO's departure.
  • The company secured a major military contract and partnered with Palantir for AI software for drones, boosting 2025 revenue guidance to $80-$120 million.
  • RCAT stock is trading at 8x 2025 sales estimates, but limited cash raises concerns, though new deals and potential government loans mitigate funding risks.
Red Cat Holdings, Inc. (NASDAQ:RCAT) was red-hot heading into the FQ2 earnings report. The drone technology stock slumped following disappointing quarterly results, but the future appears very bright. My investment thesis is Bullish on the stock, especially if the post-earnings dip holds.

Read the full article on Seeking Alpha. 

Disclosure: No position. Please review the disclaimer page for more details. 

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