Both the S&P 500 (^GSPC -0.43%) and Dow Jones Industrial Average (^DJI -0.77%) are heading in positive directions for the first full trading week of August. Shares of Joby Aviation (JOBY -4.48%), however, are off to a high-flying start. With the electric vertical takeoff and landing (eVTOL) stock announcing a new acquisition, investors are enthusiastic about landing shares of Joby in their portfolios.
As of 10:46 a.m. ET, shares of Joby have risen 14.4%.
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Joby's new acquisition is lifting investors' enthusiasm higher
Taking a major step in advance of launching commercial operations, Joby announced this morning that it has entered into a definitive agreement to acquire the urban air mobility business of Blade Air Mobility (BLDE 0.68%). As a result of the acquisition -- valued at up to $125 million -- Joby will gain immediate market access to both urban corridors in New York City and Southern Europe, as well as infrastructure assets.
While Blade's medical division isn't included in the acquisition, Joby will serve as the preferred VTOL partner for Blade's organ transport business.
Addressing the allure of the acquisition, JoeBen Bevirt, Joby founder and CEO, stated that he recognized that "[t]his is a strategically important acquisition that will support the successful launch of Joby's commercial operations in Dubai, our subsequent global rollout, and our continued leadership in the sector."
Does the deal with Blade make Joby stock a buy?
The acquisition of Blade's business is certainly a positive for Joby, as it provides a great head start as the company nears the launch of its air taxi business. In 2024, Blade estimate it flew more than 50,000 passengers from a network of 12 urban terminals situated in key urban air mobility markets around the world.
Auspicious as this development is for eVTOL leader Joby, there are plenty of other compelling reasons to consider buying shares right now. This news item simply adds another factor to the list.
