The Joby Stock is having a great July. It jumped 12% Wednesday, flirting with an all-time record for the second consecutive day.
Investors are re-energized by the progress of the electric air mobility company, as well as its expansion plans and growing confidence.
In mid-July the Joby share price hit a 52-week record of $13.62, pushing its value past $10.62 billion.
On July 15 it added another 10,45% to close at $13.95. This is not an accident. The shares have now risen 169% in the last three months, and eight out of ten recent trading sessions.
The trading was also heavy, as more than 44,000,000 shares changed hands on a single-day basis. It’s safe to say that the bulls have control.
The catalysts that are fueling this rally have been identified.
H2FLY is Joby’s German subsidiary. It just completed a major feat: A 523-mile hydrogen-electric flight, with only water vapor as the output.
This is a huge step in the direction of zero-emissions aviation, and it’s clear that Joby has ambitions far beyond short-hop air-taxis.
The company can set itself up to experience a new growth wave by tapping into a much larger market of regional air travel.
Investors have taken notice of Joby, recognizing it as “dual threat”: commercial launch in the short term and potential leadership in long-range electric flight in the future.
Joby is not only flying higher, but it’s also building faster. Joby recently doubled its production capacity at the main California facility, which now can produce up to 24 planes a year.
It’s also laying the foundation for an even bigger effort in Dayton (Ohio), where a brand new facility is being sized to produce up to 500 aircraft per year.
Joby’s commitment to a serious production is evident as the demand for electric aircraft travel increases.
Joby has recently completed a successful series of manned VTOL demonstrations in Dubai. This indicates that the company is close to launching its commercial operations in Middle East before 2026.
This milestone has helped the company earn new buy ratings from major analysts and prices targets that have been raised. Another vote of confidence for its progress.
What is the weather forecast?
Wall Street targets still trail the sharp rise in stock prices.
Analyst consensus is currently $9-13, H.C. Wainwright being at $13, Canaccord $12 and Cantor at $9.
The market is looking ahead and pricing Joby’s growing total market addressable as well as its lower long-term risks after the hydrogen breakthrough.
This is a case where the market runs ahead of models. You see this a lot with disruptive, high-reward tech investments.
Joby’s sentiment is bullish at the moment. Charts show that the stock is now trading above its previous range. The next major resistance level for this stock appears to be $14.06.
The company has a volatile stock; the beta is 2.47. However, its fundamentals remain solid.
Joby has a gross margin of 53% and a ratio of current of 17.7. This is enough to support its plans for growth. It’s also got a balance sheet that matches the hype.
Check forecast as it evolves. This post Joby soars by 12% and aims for new highs in the second consecutive day.
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