Red Cat Holdings Inc. (RCAT) shares tumbled nearly 12% in after-hours trading on Monday despite an earlier rally during the regular session on news of a partnership with AI software giant Palantir Technologies.
The Puerto Rico-based drone technology company had announced a strategic partnership with Palantir to integrate the latter's visual navigation software into select Red Cat drones. This collaboration would utilize Palantir's AI software running onboard the drones to provide accurate navigation independent of GPS or radio signals.
The partnership news initially sent Red Cat shares soaring as much as 25% during Monday's trading to an intraday high of $10.35. However, the stock swiftly reversed course in after-hours trading following the company's fiscal second-quarter earnings release.
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