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Joby Stock: $5 Gamble on Future Flight
1 Nov
Summary
- Joby Aviation is developing America's first electric air taxis.
- The company acquired Blade Air Mobility's passenger business last year.
- Joby's stock trades at 40 times trailing revenue, higher than airline stocks.
Joby Aviation is developing one of America's first electric air taxis, a venture that has seen its stock price drop significantly this year. The company has been actively flying its eVTOL aircraft in New York City, San Francisco, and Dallas-Fort Worth, preparing for passenger services. Joby is currently in the final stages of FAA type certification.
In a strategic move, Joby acquired Blade Air Mobility's passenger operations last year. This acquisition generated approximately $36 million in the second quarter and provided crucial data on passenger demand and profitable routes. While this data pertains to helicopter services, it offers Joby a competitive advantage in understanding market dynamics before its electric air taxi launch.
Despite trading at a high valuation of about 40 times trailing revenue, significantly higher than established airlines, Joby Aviation shows long-term promise. If the company can achieve profitability with its air taxi services, the current stock price may prove to be a wise investment in retrospect.
