JOBY Should I Buy
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Joby Aviation Inc (JOBY) is not a strong buy at the moment for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. While the company has potential in the eVTOL market and has raised significant capital, its current financial performance, technical indicators, and mixed sentiment from analysts and news suggest caution. A hold position is recommended until clearer signs of profitability or stronger technical signals emerge.
The technical indicators for JOBY are bearish. The MACD histogram is negative and contracting, the RSI is neutral at 28.945, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 9.542), with resistance at R1: 11.032. Overall, the technical setup does not suggest a strong buy opportunity.
Joby Aviation's S4 eVTOLs are expected to lead the market due to technological advantages and strong investor backing.
The company is approaching FAA certification and plans to launch its eVTOL aircraft in Dubai, which could enhance market competitiveness.
Hedge funds are significantly increasing their buying activity, indicating institutional interest.
Concerns over profitability persist, with a negative free cash flow of $532 million and increasing losses.
The stock has fallen nearly 50% from its 52-week high, reflecting market skepticism.
Analysts have lowered the price target due to dilution and interest expenses from recent capital raises.
The company faces challenges in scaling production and achieving long-term growth.
In Q3 2025, Joby Aviation's revenue increased significantly to $22.57 million, up 80521.43% YoY. However, the company reported a net loss of $401.23 million, an increase of 178.87% YoY. EPS improved to -0.48, up 128.57% YoY, and gross margin rose to 55.44, up 19.41% YoY. Despite revenue growth, the company remains unprofitable with heavy cash burn.
Canaccord recently lowered the price target for JOBY from $17 to $15.50, maintaining a Hold rating. This reflects the dilution effect and interest expenses from recent capital raises. Analysts are cautious about the company's profitability and long-term growth prospects.
