Cramer's Lightning Round: 'For a Spec, You Can Buy' Red Cat

Alright, let's dive into Jim Cramer's latest Lightning Round, where he discusses Red Cat (RCAT), a drone technology company that's caught his eye. As always, Cramer's insights provide a unique perspective on the market, so let's break down his thoughts on Red Cat and see what we can learn.

First things first, Cramer acknowledges that Red Cat's stock has gone up significantly, around 850% in November. While this might seem like a red flag for some investors, Cramer sees it as an opportunity for those looking for a speculative play. He says, "I am willing to pass on an 850 percenter. I don't want to bet that it's going to go up a thousand percent. It's just not my style." This comment highlights Cramer's cautious approach to highly speculative stocks, but it doesn't mean he's written off Red Cat entirely.

Cramer goes on to discuss Red Cat's business model and products, which he believes make it an attractive investment. He mentions the company's focus on military-grade drones, as well as its innovative products like the Teal 2 and the Edge 130 Blue Tricopter. These products, along with Red Cat's strong subsidiaries and partnerships, contribute to the company's growth potential and make it an appealing speculative investment.

Now, let's address the elephant in the room: Red Cat's recent performance and growth prospects. According to the information provided, Red Cat's revenue grew by 286.00% in 2024 compared to the previous year, reaching $17.84 million. The company also reported a record backlog of $13 million as of the first quarter of fiscal 2025, reflecting strong demand for its products and services. For the upcoming 2025 calendar year, Red Cat has provided guidance indicating revenue expectations in the range of $50 to $55 million. These figures suggest that Red Cat is well-positioned for continued growth.

In conclusion, Cramer's Lightning Round on Red Cat offers valuable insights into the company's potential as a speculative investment. While Cramer himself is cautious about the stock's recent price increase, he acknowledges the company's strong business model and growth prospects. Investors looking for a high-risk, high-reward play in the drone technology sector might want to consider Red Cat, but it's essential to do thorough research and consider your risk tolerance before making any investment decisions.