Joby Aviation (NYSE:JOBY) saw its stock plunge nearly 8% today after announcing plans to issue about 30.5 million new shares at a discounted price to raise over $500 million. The move caught investors off guard, as it means existing shares will be diluted – a tough pill to swallow after the stock’s impressive recent run. The funding will help Joby push ahead with aircraft certification, expand manufacturing, and prepare for commercial launches, but the timing made investors uneasy.
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Still, it’s worth remembering why the stock had been flying so high in the first place. Joby has been soaring to gains of more than 225% over the past six months, driven by regulatory progress in bringing its eVTOL vision to life – momentum that’s captured both investor excitement and government attention. The company has even advanced to the fifth and final stage of the FAA’s Type Inspection Authorization, known as “Show and Verify,” a crucial step toward certification.
Joby has been expanding production capacity at its facilities in California and Ohio and recently showcased a successful public flight demonstration at the Expo 2025 Osaka in Japan.
Though JOBY remains in the pre-profit stage, top investor Rick Orford believes that the time could be ripe to hitch a ride on the high-flying company.
“If you genuinely believe in the technology, I think this might be a boarding pass before the company fully takes off. And just remember, the earlier you board, the cheaper the ticket, but the bumpier the ride,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks. (To watch Rick Orford’s track record, click here)
Orford points out that Joby has not only achieved milestones, including 30,000 miles of test flights, but they have also secured the backing of major industrial players such as NASA, Toyota, and the U.S. Air Force. This is no mere pipe dream, argues the investor, but JOBY is “stacking serious credibility here.”
The investor is further encouraged by JOBY’s recent inclusion in the Trump administration’s eVTOL pilot program, which Orford even hypothesizes might enable the company to begin some limited operations before fully securing its FAA certification.
“It implies that Joby can now start to build that real-world experience, collect safety data, and establish a foothold in the market while its competitors are still focusing on approvals,” adds Orford.
Another data point that the investor seizes upon is JOBY’s acquisition of Blade Air Mobility’s passenger service, which has now officially been completed. This gives JOBY an established infrastructure in key cities, including the New York metropolitan area.
Wall Street, however, isn’t quite as ready to jump on board. With 5 Holds outpacing 1 Buy and 1 Sell, JOBY carries a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $13.30 implies a downside of ~30%. (See JOBY stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.