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Red Cat: Sell-Off Gift

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Update - January 22, 2026

Red Cat just hit a new high of nearly $17.50. The stock is now up nearly 200% from when SFC pointed out the gift opportunity to buy the drone manufacturer in the $6s. The stock only has a $2 billion market cap, so the rally can continue. 


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Original article posted on Nov. 24, 2025

  • Red Cat has sharply declined to $6 despite strong momentum in the U.S. drone market and new product launches.
  • The drone manufacturer reported record Q3 revenue with growth of 646% YoY, but 2025 guidance was cut significantly due to government contract delays.
  • The company is expanding into uncrewed surface vessels, targeting a $150 million opportunity, and maintains a robust $213 million cash balance.
  • RCAT stock trades at a low EV/S valuation, making the current dip an attractive entry point for investors seeking exposure to the growing drone and robotics sector.
In a wild swing, Red Cat Holdings, Inc. (RCAT) has quickly given up the major gains of the prior 6 months. The U.S. drone manufacturer is benefiting from massive tailwinds in the drone space while expanding into a new market segment. My investment thesis is ultra bullish on the stock after this major sell-off finds Red Cat back trading at only $6.


Read the full article on Seeking Alpha. 

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

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