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JOBY Soars 41% in a Month: Should You Buy, Sell or Hold the Stock?
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Key Takeaways
Joby Aviation shares jumped 41% in a month, nearing their 52-week high of $20.95.
The company showcased air taxi capabilities and advanced defense flight operations.
The buyout of Blade's mobility passenger business and its Dubai plans mark key steps toward commercialization.
Joby Aviation (JOBY - Free Report) shares have had an impressive run on the bourses, gaining 41% over the past month and outperforming the Zacks Transportation - Airline industry. However, peer Archer Aviation (ACHR - Free Report) has performed even better in the same timeframe.
1-Month Price Comparison
Image Source: Zacks Investment Research
Joby’s closing price yesterday of $18.91 was not far from its 52-week high of $20.95. Given this, investors might be wondering whether to buy, sell or hold the stock right now. Let's delve deeper into the purpose.
JOBY’s Air Taxis Score at California International Airshow
At the California International Airshow in Salinas, Joby completed three airshow demonstrations, including round-trip flights between Marina and Salinas. Each flight took off vertically from Marina, transitioned into cruise mode for the short trip to Salinas and then shifted back to a hover for landing, with a pilot onboard.
Spectators observed the aircraft execute various maneuvers — including steep climbs and controlled hovers — before it returned to Marina for a vertical landing. These test flights showcased the aircraft’s reliability and the advancement of its operational capabilities.
Recently, JOBY showcased its autonomous defense capabilities by completing a military exercise. The exercise saw the transportation company logging in excess of 7,000 miles of autonomous operations across more than 40 flight hours.
JOBY Eyeing Commercial Operations
In line with its efforts to start commercial operations, the company announced plans to participate in the White House eVTOL Integration Pilot Program. The program is designed to fast-track the development and deployment of electric air taxis and other advanced air mobility vehicles. This program could benefit Joby Aviation by providing a clear pathway to demonstrate its technology.
Joby plans to operate its first of five Federal Aviation Administration or FAA-conforming aircraft later this year and commence flight testing with FAA pilots onboard early next year. As part of its efforts related to air taxi commercialization, Joby recently completed the acquisition of Blade Air Mobility’s urban air mobility passenger business.
The acquisition provides Joby access to Blade’s established network of terminals and loyal flyers in key markets, such as New York and Southern Europe. The buyout may expedite Joby’s entry into commercial service with its eVTOL aircraft once certified. Moreover, the closure of the buyout is likely to provide Joby a head start over competitors like Archer Aviation.
Following the acquisition, Joby and Uber Technologies (UBER - Free Report) announced plans to bring Blade’s air mobility services to the Uber app by 2026. Joby and Uber have collaborated on advancing the future of urban air mobility since 2019. In 2021, Joby acquired Uber’s Elevate division, which was instrumental in shaping the urban air mobility industry and creating key tools for market selection, demand forecasting and multi-modal operations.
As part of its commercialization strategy, Joby announced plans earlier this year to expand its operations. The company revealed an expansion of its facility in Marina, CA, which will double its aircraft production capacity at that site. Covering 435,500 square feet, the expanded facility will support Joby’s efforts to scale its commercial operations. Once fully operational, the Marina site is expected to produce up to 24 aircraft annually as Joby moves closer to launching its air taxi service. Joby aims to start commercial air taxi operations in Dubai next year.
Some Headwinds That Can’t Be Ignored
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.
Image Source: Zacks Investment Research
While Joby Aviation is making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Only time will tell how the market and customer demand for eVTOLs will turn out. 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.
Valuation remains a sticking point. In terms of price-to-book value, JOBY is trading at 12.35X, 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
Image Source: Zacks Investment Research
JOBY is a Risky Investment Now
The premium valuation reflects confidence in Joby’s long-term stability, but it also suggests limited near-term upside potential. With the company facing certain risks, like the absence of significant revenues and uncertainties related to commercialization, jumping in now might mean overpaying. The Wall Street average target price for Joby Aviation is $10.83, suggesting a 44.7% downside.
Image Source: Zacks Investment Research
Despite the eVTOL-related optimism, JOBY, currently carrying a Zacks Rank #4 (Sell), appears to be a stock to avoid rather than chase.
Image: Bigstock
JOBY Soars 41% in a Month: Should You Buy, Sell or Hold the Stock?
Key Takeaways
Joby Aviation (JOBY - Free Report) shares have had an impressive run on the bourses, gaining 41% over the past month and outperforming the Zacks Transportation - Airline industry. However, peer Archer Aviation (ACHR - Free Report) has performed even better in the same timeframe.
1-Month Price Comparison
Joby’s closing price yesterday of $18.91 was not far from its 52-week high of $20.95. Given this, investors might be wondering whether to buy, sell or hold the stock right now. Let's delve deeper into the purpose.
JOBY’s Air Taxis Score at California International Airshow
At the California International Airshow in Salinas, Joby completed three airshow demonstrations, including round-trip flights between Marina and Salinas. Each flight took off vertically from Marina, transitioned into cruise mode for the short trip to Salinas and then shifted back to a hover for landing, with a pilot onboard.
Spectators observed the aircraft execute various maneuvers — including steep climbs and controlled hovers — before it returned to Marina for a vertical landing. These test flights showcased the aircraft’s reliability and the advancement of its operational capabilities.
Recently, JOBY showcased its autonomous defense capabilities by completing a military exercise. The exercise saw the transportation company logging in excess of 7,000 miles of autonomous operations across more than 40 flight hours.
JOBY Eyeing Commercial Operations
In line with its efforts to start commercial operations, the company announced plans to participate in the White House eVTOL Integration Pilot Program. The program is designed to fast-track the development and deployment of electric air taxis and other advanced air mobility vehicles. This program could benefit Joby Aviation by providing a clear pathway to demonstrate its technology.
Joby plans to operate its first of five Federal Aviation Administration or FAA-conforming aircraft later this year and commence flight testing with FAA pilots onboard early next year. As part of its efforts related to air taxi commercialization, Joby recently completed the acquisition of Blade Air Mobility’s urban air mobility passenger business.
The acquisition provides Joby access to Blade’s established network of terminals and loyal flyers in key markets, such as New York and Southern Europe. The buyout may expedite Joby’s entry into commercial service with its eVTOL aircraft once certified. Moreover, the closure of the buyout is likely to provide Joby a head start over competitors like Archer Aviation.
Following the acquisition, Joby and Uber Technologies (UBER - Free Report) announced plans to bring Blade’s air mobility services to the Uber app by 2026. Joby and Uber have collaborated on advancing the future of urban air mobility since 2019. In 2021, Joby acquired Uber’s Elevate division, which was instrumental in shaping the urban air mobility industry and creating key tools for market selection, demand forecasting and multi-modal operations.
As part of its commercialization strategy, Joby announced plans earlier this year to expand its operations. The company revealed an expansion of its facility in Marina, CA, which will double its aircraft production capacity at that site. Covering 435,500 square feet, the expanded facility will support Joby’s efforts to scale its commercial operations. Once fully operational, the Marina site is expected to produce up to 24 aircraft annually as Joby moves closer to launching its air taxi service. Joby aims to start commercial air taxi operations in Dubai next year.
Some Headwinds That Can’t Be Ignored
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.
While Joby Aviation is making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Only time will tell how the market and customer demand for eVTOLs will turn out. 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.
Valuation remains a sticking point. In terms of price-to-book value, JOBY is trading at 12.35X, 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
JOBY is a Risky Investment Now
The premium valuation reflects confidence in Joby’s long-term stability, but it also suggests limited near-term upside potential. With the company facing certain risks, like the absence of significant revenues and uncertainties related to commercialization, jumping in now might mean overpaying. The Wall Street average target price for Joby Aviation is $10.83, suggesting a 44.7% downside.
Despite the eVTOL-related optimism, JOBY, currently carrying a Zacks Rank #4 (Sell), appears to be a stock to avoid rather than chase.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.