American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Joby and Archer Aviation shares soar after new Buy ratings but patience key for those stocking up

by admin November 20, 2024
November 20, 2024
Joby and Archer Aviation shares soar after new Buy ratings but patience key for those stocking up

On Tuesday, Joby Aviation and Archer Aviation, two developers of electric vertical takeoff and landing (eVTOL) aircraft, saw their stocks surge after Needham & Co. launched coverage with optimistic Buy ratings.

Analyst Chris Pierce highlighted that the Federal Aviation Administration (FAA) had issued final rules for pilots of eVTOLs, paving the way for expected air taxi services by 2028.

“The FAA has signalled the long-term importance of the air taxi space within the US, introducing their Innovate 2028 plan to serve as a foundation for a US air taxi industry and to ensure domestic competitiveness,” Pierce noted.

The agency’s proactive stance signals a strong regulatory framework to support eVTOLs, which can carry up to six passengers for distances of 100 miles or less and operate like helicopters, albeit more quietly and efficiently due to their battery power.

Stocks jump but patience key to see predicted upside

Following Needham’s positive ratings, Joby Aviation’s stock jumped 12% to $6.30, while Archer Aviation rose 16% to $5.13 on Tuesday.

Despite this rally, Pierce emphasized that investors will need patience as neither company is expected to generate profit until 2028, with FAA certification likely only by 2026.

The analyst projected a potential 30% rise for Joby and a possible doubling for Archer in the near term.

Joby Aviation, which still operates in a pre-revenue phase, holds a market capitalization of approximately $4.8 billion and is actively aligning itself for commercial launch.

Challenges and investor skepticism

Despite the optimistic outlook, some investors remain cautious.

Around 27% of Archer’s shares and 18% of Joby’s shares have been sold short.

Concerns include limited cash reserves, with each company holding about one year’s worth of funds at their current spending rate.

Needham forecasts that both companies will need to raise at least $2 billion in additional capital.

Toyota Motors, a major backer of Joby with $900 million already invested, remains a key financial supporter, while Archer aims to secure revenue by selling eVTOLs to airlines in the coming years.

Should you buy the stocks?

Both Joby and Archer made their stock market debuts in 2020 by merging with special-purpose acquisition companies (SPACs).

The journey since has been rocky; Joby and Archer stocks are down 60% and 70% from their initial highs, respectively.

In comparison, other eVTOL companies like Lilium have seen even steeper declines, with shares plummeting 99%.

While the path forward for these eVTOL pioneers will involve overcoming regulatory, financial, and technological hurdles, Needham’s ratings have reignited interest.

For long-term investors willing to weather the ride, Joby and Archer’s ambitious projects could eventually take flight.

The post Joby and Archer Aviation shares soar after new Buy ratings but patience key for those stocking up appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Rolls-Royce and GE Aviation stocks reversed: is the rally over?
next post
Boeing stock price forms a rare pattern, pointing to a 25% jump

Related Posts

CrowdStrike stock forecast: will it hit its ATH...

November 22, 2024

Top 3 global stocks poised for 40% gains...

December 4, 2024

Nifty 50 Index patterns point to more gains...

June 3, 2025

Starbucks stock forecast as CEO hails turnaround: can...

July 30, 2025

Apple unveils iPhone 16, iPhone 16 Pro, Apple...

September 10, 2024

FDA declares cucumber-linked Salmonella outbreak over after 155...

August 27, 2024

Sainsbury’s shares hit four-year high as Argos sale...

September 15, 2025

Tesla shares rise on better-than-expected Q2 deliveries report

July 4, 2024

Asian stocks end mixed on Tuesday: Hang Seng...

September 30, 2025

LNG markets see price drop as supply outpaces...

July 25, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

      October 5, 2025
    • Evening digest: Trump sets deadline for Hamas, Canada’s slowdown, BTC rebounds

      October 5, 2025
    • Iran executes six people for alleged links to Israel, state media reports

      October 5, 2025
    • US digest: Trump’s Hamas ultimatum, government shutdown stalemate continues

      October 5, 2025
    • Japanese stocks may extend record run as Takaichi win revives ‘Abenomics’

      October 5, 2025

    Categories

    • Business (4,191)
    • Investing (2,958)
    • Latest News (2,080)
    • Politics (1,536)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved