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JOBY Gains 33.9% in a Month: Buy, Sell or Hold the Stock?

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Key Takeaways

  • JOBY surged 33.9% in 30 days, outpacing ACHR after piloted flights in Dubai boosted investor optimism.
  • Strategic ties with Toyota and Virgin Atlantic support JOBY's push toward commercialization.
  • JOBY remains unprofitable with high valuation metrics and faces hurdles in public acceptance.

California-based transportation company Joby Aviation (JOBY - Free Report) is a leading player in the electric vertical takeoff and landing (eVTOL) space. JOBY shares have performed exceedingly well lately, gaining 33.9% in the past 30 days, outperforming the Zacks Transportation-Airline industry and another eVTOL-focused stock, Archer Aviation (ACHR - Free Report) .

One-Month Price Comparison

Zacks Investment ResearchImage Source: Zacks Investment Research

Last month, the company completed a series of piloted, vertical-takeoff-and-landing wingborne flights in Dubai. The flights were conducted in partnership with Dubai's Roads and Transport Authority, the Dubai Civil Aviation Authority and UAE's General Civil Aviation Authority.

This achievement is a giant step toward Joby’s anticipation of carrying its first passengers in 2026. To support this, the company is expanding its manufacturing facility. This should help JOBY deliver more aircraft in the coming years. 

 The success in Dubai also marks a significant step in Joby’s three-pronged commercialization strategy: direct operations, aircraft sales and regional partnerships.  This development in Dubai naturally pleased investors and resulted in the northbound movement in shares witnessed lately.

With JOBY riding high, individuals may rush to add the stock to their portfolio. However, before making any investment decision, it would be prudent to delve deeper and analyze JOBY’s growth prospects and the associated risks.

Bullishness Surrounding eVTOL Sector Supports Joby Aviation

With cities becoming more and more congested, the demand for more efficient and eco-friendly transportation solutions is on the rise. Although similar to helicopters, eVTOLs score better as they are emission-free and quieter due to their electric motors. Further, they possess the ability to navigate remote or difficult-to-access areas. This increases their value for search and rescue missions. The eVTOL market is reportedly projected to grow from $1.76 billion in 2024 to $24.1 billion by 2031, at a CAGR of 51.6% between 2023 and 2031.

eVTOLs have the potential to revolutionize urban transportation by bypassing congested ground traffic and utilizing vertical space for faster, point-to-point travel. By utilizing the vertical space, the usage of eVTOLs can bring about a reduction in noise pollution and lower carbon emissions.

Joby Aviation, a key player in the space, is focused on developing an electric "flying taxi" for commercial use. Joby Aviation plans to develop facilities capable of producing up to 500 eVTOL aircraft annually in Dayton. This strategic move underscores Joby Aviation's commitment to scaling up its production capacity and meeting the demand for electric air taxis. Also, it demonstrates the company’s tangible progress toward commercializing its electric air taxis.

Key Partnerships Bode Well for JOBY’s Ambitions

Joby Aviation’s growth prospects are bolstered by its strategic partnerships and advanced certification timeline. The company is well-served by its association with the Department of Defense and Toyota (TM - Free Report) . In October 2024, Japan’s auto giant Toyota announced its decision to invest a further $500 million in Joby.  Recently, Joby announced the successful closure of the first $250 million tranche of the strategic investment from Toyota Motor. The capital injection aims to expedite Joby’s certification process and commercial production.

Joby's air-mobility-related dream and passion, coupled with Toyota's expertise in production processes and technology development, led to Joby's first air taxi exhibition flight overseas in Japan last year.

In May 2025, Joby Aviation announced its first-quarter 2025 results, which reflected its substantial progress on the certification of its aircraft. JOBY also entered into a partnership, earlier this year, with Virgin Atlantic to launch air taxi services in the UK, starting with their hubs at London Heathrow and Manchester.  

Challenges for JOBY                                         

Joby Aviation is unlikely to be profitable any time soon, as commercial operations are yet to start. The company’s negative return on equity further highlights its lack of profitability.

Zacks Investment ResearchImage Source: Zacks Investment Research

In its path toward commercialization, JOBY is unlikely to escape turbulence as it navigates regulatory approvals, infrastructure development and adoption by consumers. In the absence of commercialization, there is no real demand for urban air mobility at present.

Only time will tell how the market and customer demand for eVTOLs will turn out to be. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY's growth potential may be constrained. Additionally, the risk of battery failure due to high voltage and thermal issues is highly likely for eVTOL aircraft. 

JOBY Shares Trading at a Premium

JOBY stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.

In terms of price-to-book value, JOBY is trading at 11.09X, higher than its industry and peer Archer Aviation. Like Joby Aviation, Archer Aviation also has a Value Score of F.

JOBY’s P/B TTM Vs. Industry & ACHR

Zacks Investment ResearchImage Source: Zacks Investment Research

What Should Investors Do With JOBY Stock?

Agreed that JOBY's electric air taxi offers a promising solution for urban air mobility, addressing the growing demand for sustainable transportation alternatives. However, challenges remain in terms of scalability and public acceptance. 

With commercialization still some distance away, it's anybody’s guess how market demand for eVTOL eventually shapes up. Also, JOBY’s stretched valuation makes it a risky bet currently. We believe investors should steer clear of this stock, which currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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