Friday, February 23, 2024
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Joby Aviation’s Bold Bet: Why Adding JOBY Stock to Your Hangar Makes Sense

As I’ve pointed out and InvestorPlace contributor Muslim Farooque confirmed, Joby Aviation (NYSE:JOBY) is definitely not the only electric vertical takeoff and landing (eVTOL) vehicle manufacturer you should consider investing in. Overall, my JOBY stock forecast is bullish. I recommend buying it along with an air-taxi competitor’s stock, so stay tuned and I’ll explain my investment strategy.

eVTOL stocks are risky, as the air-taxi business is still in its early stages. Joby Aviation is actually taking even more risks since the company is also involved with eVTOL infrastructure. Hence, there may be a bumpy ride ahead with Joby Aviation stock. Nevertheless, if you use a good eVTOL-stock diversification strategy, you could have a multi-year winner on your hands.

JOBY Stock Stalls Out, but No Need for a Parachute

Last summer, JOBY stock seemed unstoppable as it topped $10. Lately, however, it feels like the stock just keeps on taxiing down the runway.

That’s to be expected, however, when you’re investing in a burgeoning and still underappreciated industry. Investors should keep their eyes on the prize, think long-term, and remember why they believe in Joby Aviation.

Just to recap, Joby Aviation has completed a test flight of a quiet electric taxi in New York and secured a $9.8 million grant in California. In addition, the company collaborated with the National Aeronautics and Space Administration (NASA) to complete a simulation showing that air-taxi operations can take place in real-world airspace systems.

On the other hand, Joby Aviation has a serious competitor in the eVTOL industry: Archer Aviation (NYSE:ACHR). I won’t go into the full details here, but suffice it to say, Archer Aviation is also an air-taxi innovator with its own track record of success, much like Joby Aviation. So, as I’ll discuss later, it’s not a bad idea to invest in two different eVTOL companies for diversification’s sake.

Joby Aviation Goes All-in on eVTOL Infrastructure

Interestingly, much of the recent news concerning Joby Aviation pertains not to eVTOL vehicles, but to the infrastructure that allows the vehicles to function. In other words, the evidence suggests that Joby Aviation is going all-in on air-taxi infrastructure, which involves risks and potential rewards.

Here’s a quick rundown of the latest developments. Within the last couple of months, Joby Aviation has:

It sounds like Joby Aviation is making an all-or-nothing bet on the future of eVTOL infrastructure, both locally and internationally. You really need to believe in this aspect of Joby Aviation’s vision and business model if you’re planning to invest in the company for the long term. Otherwise, you’d better look for the “eject” button right now.

Bullish JOBY Stock Forecast: Buy It With This Other eVTOL Stock

Maybe you’re not very enthused about Joby Aviation’s hero-or-zero foray into eVTOL infrastructure. Or, perhaps you just want to diversify beyond just owning Joby Aviation stock.

That’s understandable, so here’s an idea to consider. My JOBY stock forecast is cautiously bullish. So, you may choose to buy a few Joby Aviation shares, plus an equal or greater number of ACHR stock shares.

That way, you don’t have to pick just one potential winner in the eVTOL industry. Ultimately, it’s fine to bet on two horses in the race: Joby Aviation and its air-taxi rival, Archer Aviation.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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