Joby Aviation Inc (NYSE:JOBY) shares are volatile Friday, erasing earlier gains that were fueled by an operational milestone. Here’s what investors need to know.
What To Know: The stock initially surged after the company announced it had successfully completed its first piloted electric vertical takeoff and landing air taxi flight between two public airports, a critical step toward commercialization.
The flight, which took place between Marina and Monterey airports, demonstrated some key capabilities including vertical takeoff, transition to wingborne flight and integration with existing air traffic control protocols.
Despite this technical achievement, Friday’s initial optimism faded as broader market concerns and company-specific financial headwinds appeared to reassert themselves.
Investors are still digesting Joby's recent second-quarter earnings report, which revealed a net loss of 41 cents per share, substantially wider than the 19-cent loss analysts had anticipated. This miss has intensified concerns over the company’s cash burn and its lengthy path to profitability.
Wall Street sentiment remains cautious, with analysts at JPMorgan recently reiterating an Underweight rating, citing significant regulatory hurdles and an uncertain timeline for commercial launch.
The day's volatile price action encapsulates the central conflict for Joby investors: balancing tangible progress toward FAA certification and commercial flight against the considerable financial risks and competitive pressures from rivals like Archer Aviation.
While the successful flight validates the technology, the overarching questions about the business model and timeline to profitability continue to create turbulence for the stock.
Price Action: According to data from Benzinga Pro, JOBY shares are trading lower by 1.2% to $17.13 Friday morning. The stock has a 52-week high of and a 52-week low of
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How To Buy JOBY Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Joby Aviation’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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