Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTKeith Noonan, The Motley FoolSat, June 13, 2026 at 1:45 AM GMT+2 2 min readRed Cat (NASDAQ: RCAT) stock lost ground in Friday's trading despite a backdrop of positive momentum for the broader market. The company's share price fell 6.9% in a session that saw the S&P 500 rise 0.5% and the Nasdaq Composite rise 0.3%.There wasn't any negative business-specific news for Red Cat today, but the company's valuation moved lower as investors reacted to geopolitical news and made portfolio adjustments connected to SpaceX's initial public offering (IPO). While the stock has recently seen a substantial valuation pullback, it's still up 41% in 2026.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: Getty Images.Iran war news appears to have been a negative catalyst for Red CatFollowing recent news suggesting that the Iran war could be poised for reescalation, new reports suggest that a deal to end the conflict could finally be forthcoming. While an end to the war would be a bullish development for the broader market, it could also dent positive momentum for defense stocks.SpaceX's IPO also created valuation pressures for Red CatSpaceX went public today, and its stock gained 19.2% in its first day of trading. The company set valuation and fundraising records for an IPO, and it closed out the day with a market capitalization of roughly $2.11 trillion.While SpaceX's successful IPO created positive valuation trends for the market at large, it actually coincided with pullbacks for many space tech and next-generation defense stocks. With investors pulling money out of other growth-dependent plays in order to fund investments in SpaceX, Red Cat's valuation was under pressure today.Should you buy stock in Red Cat right now?Before you buy stock in Red Cat, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Red Cat wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info