Red Cat Roars Back: Venezuela Speculation Sends Drone Stock Flying

• Last year, Red Cat received a limited-rate initial production contract for the surveillance drones as the U.S. Army steps up drone deployments.
• In September, the company said that the Black Widow System, developed by its subsidiary Teal Drones, had been approved and added to the NATO Support and Procurement Agency catalogue.
• Users on Stocktwits were quick to note that the drones probably used by the U.S. government in Venezuela could be linked to Red Cat.

Last year was not a good run by any measure for Red Cat Holdings, which saw its stock slump by 40%. Still, investor optimism entering 2026 appears to be stronger, as shares surged on the first two trading days of the new year. Now, retail traders are speculating there might be a recent geopolitical angle to the whole thing.

Since Jan. 2, Red Cat’s stock has nearly wiped out all of last year’s losses.

Users on Stocktwits were quick to note that the drones probably used by the U.S. government in Venezuela could be linked to Red Cat. A user on Stocktwits noted that Red Cat and Ondas have been adding offices next to Mar-a-Lago as a strategic move in Palm Beach

According to media reports, Mar-a-Lago has become a site for planning several U.S. military operations. U.S. President Donald Trump had declared from Mar-a-Lago’s Tea Room that Venezuela’s leader was arrested, according to CNN.

On Saturday morning, in the early hours, Maduro and his wife were arrested and taken to New York after a U.S. airstrike. They are being held at the Metropolitan Detention Center in Brooklyn with charges related to drug trafficking and weapons offenses.

Red Cat And US Government

Last year, Red Cat received a limited-rate initial production contract for the surveillance drones as the U.S. Army stepped up drone deployments, following the Trump administration's loosening of several restrictions on unmanned aircraft systems. 

In September, the company announced that the Black Widow System, developed by its subsidiary Teal Drones, had been approved and added to the NATO Support and Procurement Agency (NSPA) catalogue. Black Widow is a mission-ready small Uncrewed Aerial System that the U.S. Army selected as one of two vendors to manufacture systems for its Short-Range Reconnaissance program.

However, in November, the company had noted that the contract it received from the U.S. Army's short-range reconnaissance program, which has now been expanded to $35 million, took a long time to finalize.

What Is Retail Thinking?

Retail chatter has been picking up on Red Cat in the last few hours, with several users tagging the ticker to note a strike in Caracas, Venezuela. 

“This is genuinely terrifying to see so many drones which are barely visible,” posted one user on RCAT’s stream, citing a report of drones and rapid gunfire being reported in Venezuela late Monday.

Another bullish watcher predicted that RCAT’s stock could finish the week between $30-$40, which would potentially mark record highs, following reports that drone stocks surged in the aftermath of Trump’s Operation ‘Absolute Resolve’, in which Maduro was extracted from Caracas.

Over the previous 24 hours, the retail user message count on Red Cat on Stocktwits jumped 325%, indicating strong interest in the small-cap stock. Retail sentiment jumped to ‘extremely bullish’ from ‘neutral’ a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. 

The stock has seen a more than 63% jump in users on Stocktwits, with Stocktwits users adding it to their watchlist in the past year, and the retail user message count has soared nearly 600% for the same period.

Shares of the company have lost over 16% of their value in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Chevron, Exxon, Other Crude Players Add $50B In Market Cap As Trump Opens Door To Big Oil's Return In Venezuela

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