Joby Aviation (JOBY -9.01%) stock hit turbulence in Thursday's trading. The electric vertical takeoff and landing (eVTOL) company's share price closed out the daily session down 9% and had been off as much as 10.8% earlier in the session.
Joby's valuation saw big pullbacks today as two analysts weighed in with cautious coverage on the stock. H.C. Wainwright lowered its rating on Joby from buy to neutral, with the firm's analysts citing valuation concerns on the heels of recent gains as a key rationale for the ranking shift. Canaccord also published new coverage on Joby today, downgrading its rating on the stock from buy to hold despite raising its one-year price target on the stock from $12 per share to $17 per share. The stock closed out today's trading at $17.25 per share.
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Is Joby Aviation stock a buy?
For a company with a market capitalization of roughly $13.6 billion, Joby Aviation has generated a minuscule amount of revenue. The company has yet to commence commercial sales and operations for its eVTOL craft, and it seemingly still has some big hurdles to clear to receive regulatory certification in the U.S., despite seemingly having an easier runway to regulatory approval in Saudi Arabia and other markets.
Even after factoring in the impact of today's valuation pullback, Joby stock is up roughly 112% across 2025's trading. The stock is still a very high-risk play even on the heels of recent sell-offs.
While Joby seemingly has a leading position in the market for eVTOL crafts in the U.S. and other major markets, the trajectory for commercialization remains highly speculative. The stock could be a worthwhile portfolio addition for investors who have high risk tolerance and want exposure to the potentially explosive eVTOL market, but the degree of uncertainty on the horizon suggests that shares could be too volatile for more risk-averse investors even on the heels of the recent pullback.
