Red Cat Stock Ignites Retail Frenzy After Explosive Q4 Revenue Outlook

• The stock hit its best day since September on Jan. 5, after a 19% jump driven by retail speculation that the drones used by the U.S. government in Venezuela could be linked to Red Cat.
• Red Cat said that for the fourth quarter, it expects revenue to jump a whopping 1,842% between $24 million and $26.5 million.
• In the last year, the stock saw a 64% spike in followers on Stocktwits and retail message volumes jumped nearly 200% over the past 24 hours.

Red Cat Holdings saw message volumes on Stocktwits nearly triple over the past 24 hours after the company forecast a significant increase in fourth-quarter revenue, drawing renewed attention from retail traders and investors.

Shares of Red Cat closed up more than 9% on Tuesday, with trading volume reaching 5 times the daily average, and are now up nearly 65% since the start of January. The stock also logged its best session since September on Jan. 5, surging 19% amid retail speculation that drones reportedly used by the U.S. government in Venezuela could be linked to the company.

A bullish Stocktwits user noted that a “correction in market cap” has begun, in response to a watcher who posted that such trading volume “doesn’t happen unless it’s going higher.”

RCAT Q4 Prelim Results

On Tuesday, Red Cat said that for the fourth quarter, it expects revenue to jump a whopping 1,842% between $24 million and $26.5 million, compared with Wall Street’s expectation of $21 million, according to data from Koyfin.

The company also forecast 2025 revenue to increase 153% to between $38 million and $41 million, compared with estimates of $35 million. CEO Jeff Thompson noted that the results reflected robust demand from defense and government customers, which have helped expand program wins.

Venezuela Angle 

Last week, Stocktwits users 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.

Earlier in January, Venezuelan President Nicolas Maduro and his wife were arrested and taken to New York after a U.S. airstrike. U.S. President Donald Trump had reportedly declared from Mar-a-Lago’s Tea Room that Venezuela’s leader was arrested.

How Are Retail Users Reacting?

Retail sentiment on Red Cat jumped to ‘extremely bullish’ (90/100) from ‘bullish’ territory a day ago, with the score hitting the highest level this year, while 24-hour message volume surged to ‘extremely high’ levels, according to data from Stocktwits. In the last year, the stock saw a 64% spike in followers on the platform.

A user on Stocktwits said that a steady uptick was observed in the stock heading into Wednesday.

Shares of Red Cat Holdings have gained nearly 20% in the last 12 months.

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