Jim Cramer on Red Cat: “I Think There Are Others That Are Better”

Red Cat Holdings, Inc. (NASDAQ:RCAT) was among the stocks Jim Cramer looked at as he discussed the recent bounce in software stocks. When a caller inquired about the stock during the lightning round, Cramer commented:

Okay, you know, look, we don’t mind the drones. I know that Ben Stoto has been following this Red Cat closely. My problem is they’re not making a lot of money. I think there are others that are better. I think it’s a good spec. How about that? It’s a good spec.

Photo by jason briscoe on Unsplash

Red Cat Holdings, Inc. (NASDAQ:RCAT) develops drone systems and control technologies for military, government, and commercial use. A caller inquired about the stock during the October 15, 2025, episode. The Mad Money host replied:

Okay, so this is a Ben Stoto favorite, not really. It’s a drone company. We are on the fence about buying drone companies that aren’t making money.

It is worth noting that since the above comment was aired, the company’s stock is down by 12%.

While we acknowledge the risk and potential of RCAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RCAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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