DRONE COMPANY RED CAT (RCAT) CORE POSITION PRESENTS ASYMMETRICAL OPPORTUNITY
By Nigam Arora
Red Cat (RCAT) is long from $12.16. Prior to earnings, the stock traded as high as $18.49 and has pulled back following the release.
Earnings: What Really Moved The Stock
The reaction is straightforward.
- Earnings came below consensus and below whisper numbers.
- Revenue came above consensus but below whisper numbers.
The market trades based on whisper numbers, not the published numbers retail investors see. Whisper numbers are what analysts communicate privately to top clients. When results miss those expectations, stocks often sell off regardless of what the headline consensus shows. That is exactly what happened here.
Big Picture: Investors Are Behind
The market continues to treat RCAT as a small speculative drone company. … Please click here or the title below to read more.
March 20, 2026