Joby and Archer Aviation Are Falling Just as Air Taxis Near Reality
Here's why Joby and Archer Aviation stocks are falling as the evtol dream nears the commercialization stage later this year.
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Joby Aviation had a busy week last week that included Q2 results and a new Texas facility supporting its upcoming eVTOL flight program.
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Here's why Joby and Archer Aviation stocks are falling as the evtol dream nears the commercialization stage later this year.
Joby Aviation, an eVTOL aircraft developer, has underperformed since going public but could see significant growth once the FAA certifies its commercial flights. The company's S4 aircraft offers advantages over competitors like Archer Aviation, with backing from Toyota, Delta Air Lines, and Uber. Analysts project revenue could grow from $53M in 2025 to $435M by 2028, potentially doubling the company's market cap to $14B over three years, though the stock remains highly speculative with ongoing cash burn and shareholder dilution.
Boeing has returned to profitability with $89.5B in FY2025 revenue and a strong order backlog, positioning it as a stable long-term investment despite high debt levels and near-zero net margins. Joby Aviation, a debt-free electric air taxi startup, achieved massive revenue growth to $53.4M but posted a $930M net loss and faces regulatory hurdles before commercialization. The article recommends Boeing for risk-averse investors seeking value, while Joby represents a speculative bet on future urban air mobility.
The article compares two high-risk, pre-profitability industrial stocks: Archer Aviation, which develops electric vertical takeoff aircraft, and AST SpaceMobile, which builds a space-based cellular network. Both companies are burning significant cash with minimal revenue, but AST SpaceMobile is recommended as the better long-term buy due to its faster path to revenue growth, stronger partnerships with major carriers, and lower valuation multiples, despite higher debt-to-equity ratios.