Jim Cramer expressed caution towards investing in Red Cat Holdings, Inc. (RCAT) despite the company’s significant growth and record backlog. In a recent episode of Mad Money, Cramer stated that he doesn’t want to bet on another 1000% increase, citing the stock’s current 850% rise as less appealing. RCAT provides products and solutions for the drone industry, with revenue expectations of $50-55 million for 2025.
The company has reported strong demand for its products and services, with a record backlog of $13 million in the first quarter of fiscal 2025. Red Cat’s growth trajectory is supported by a solid pipeline and backlog, with significant year-over-year growth reported. The company recently announced winning the U.S. Army’s SRR Program of Record, which will help ramp up production for its next-generation system.
Cramer highlighted the potential of RCAT but expressed his skepticism about investing in it due to its high stock price increase. He prefers to hold cryptocurrency as a hedge against national debt concerns and doubts that the deficit issue can be resolved during his lifetime.
Source: https://finance.yahoo.com/news/jim-cramer-red-cat-holdings-185747654.html