Headlines about sightings of unidentified drones in New Jersey that have spread across several states continue with no explanation as to the origin or purpose of these anomalies. This has brought a lot of attention to the topic of drones, whether they are used for hobby, delivery, inspection, military or filming. This has sparked interest among investors, as evidenced by rising volumes and prices of drone-related stocks. Here are two stocks that have benefited from the growing media attention on drones.
Red Cat: Vertically Integrated Drone Products and Services
Red cat today
(As of 12/24/2024 5:19 PM ET)
- 52 week range
- $0.56
▼
$13.89
- Target price
- $4.00
Drone Manufacturing Company Red Cat Holdings Inc. NASDAQ: RCAT provides hardware and software for robotic drones for military and commercial operations. The company operates through two subsidiaries: Teal Drones and FlightWave Aerospace.
Teal specializes in military drones used for short-range reconnaissance (SRR). He was awarded industrial selection for the U.S. Army’s Short Range Reconnaissance program. FlightWave manufactures and markets the Edge 130 Enterprise 130 vertical take-off and landing (VTOL) tricopter for commercial and military use. With a two-hour flight time, autopilot technology allows you to plan and execute entire missions with just a few hand movements.
With a market capitalization of $861.7 million, Red Cat shares are up 1,121.5% year to date (YTD) as of December 20, 2024.
Red cat population: driven by hope and wild predictions?
Red Cat Stock Forecast Today
$4.00
-66.36% DisadvantageBuy
Based on 1 analyst estimates
| High forecast | $4.00 |
|---|---|
| Average forecast | $4.00 |
| Low forecast | $4.00 |
Red Cat Stock Forecast Details
For the second quarter of fiscal 2025, Red Cat lost $9.1 million on revenue of $1.535 million. Year-to-date losses totaled $16.8 million on revenue of $4.3 million. Red Cat has completed its acquisition of Flightwave Aerospace. The company also received a $1 million Edge 130 Blue drone contract from the U.S. Army Communications Electronics Command (CECOM). It also secured a tactical increase in funding for FlightWave from the U.S. Air Force. The company began construction of a new manufacturing facility to expand production capacity to fulfill existing contracts and scale future sales.
Red Cat forecast full-year 2025 sales of $80 million to $120 million. This is driven by the Army’s SRR t2 contract, which could generate up to $79 million in revenue and $50-55 million in revenue from other projects.
Collaboration with Palantir
Red Cat announced a partnership with Palantir Technologies Inc. NASDAQ: PLTR equip your drones with Palantir Visual Navigation (VNav) software, which uses artificial intelligence and satellite imagery to accurately navigate drones without GPS.
“Palantir’s visual navigation is unlike any other. There are currently 40 companies trying to do this, but they have access to real-time satellite imagery. So, if you are on a battlefield and three buildings and a road have disappeared, most visual navigation will no longer work. We can get real-time map updates as you compare the visual image, what the camera sees, with the map you have on board Black Widow,” said CEO Jeff Thompson.
Ambarella: AI SoC for Drones
Ambarella today
(As of 12/24/2024 5:19 PM ET)
- 52 week range
- $39.69
▼
$81.32
- Target price
- $84.17
Semiconductor company Ambarella Inc. NASDAQ: AMBA develops systems on a chip (SoC) that enable high-definition (HD) video compression and image processing. Their SoCs enable the drones to capture high-quality 4K, 6K and 8K video. Artificial intelligence and computer vision algorithms help drones see and understand their environment, which helps them better detect and avoid obstacles, track objects, and fly autonomously. Their chips speed up the deep learning process of drones. Ambarella chips are used in consumer, commercial and security drones. The company does compete with some strong players in the computer and technology sector such as NVIDIA Company NASDAQ: NVDA Jetson AI Platforms, QUALCOMM Inc. NASDAQ:QCOMAnd Intel Company NASDAQ: INTK.
Third quarter results driven by edge AI demand for inference processors
Ambarella stock forecast today
$84.17
Growth potential 13.66%Moderate purchase
Based on ratings from 12 analysts
| High forecast | US$100.00 |
|---|---|
| Average forecast | $84.17 |
| Low forecast | $55.00 |
Ambarella stock forecast details
For the fiscal third quarter of 2025, Ambarella reported earnings per share of 11 cents, beating consensus estimates by 8 cents. Revenue grew 63.4% year-over-year to $82.65 million, beating analysts’ consensus estimate of $79.01 million. The growth was driven by artificial intelligence inference processors, which increased revenue by 30% sequentially. The company raised its fourth-quarter revenue guidance to $76 million to $80 million, beating the consensus estimate of $69.13 million.
“Company-specific factors more than offset overall market weakness, and we reported sequential revenue growth of 30% in the fiscal third quarter, above the high end of our guidance range, with growth again driven by our customers’ new products, particularly those include our higher-end AI inference processors,” said CEO Fermi Wang.
Wang also said that Edge AI currently accounts for 70% of total revenue, a record high, and is expected to drive growth in the Internet of Things (IoT) and automotive markets through 2025 and 2026.
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