Joby Aviation (JOBY -4.34%) stock closed out Friday's trading with huge gains. The electric vertical takeoff and landing (eVTOL) company's share price was up 13.4% at the end of the day's trading. Meanwhile, the S&P 500 (^GSPC -0.28%) ended the day up 0.5%, and the Nasdaq Composite (^IXIC -0.34%) closed out the session up 0.7%.
Besides bullish momentum for the broader market, Joby Aviation stock also saw gains thanks to news about its runway for expansion in the U.K. market. The U.K.'s Civil Aviation Authority (CAA) recently published a report that suggests a favorable outlook for the introduction of eVTOL aircraft in the market.
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Is Joby Aviation stock a buy right now?
With the publication of the U.K. CAA's new delivery model for commercial eVTOL flights, Joby Aviation has seemingly gotten a significant bullish valuation catalyst. The outlook for commercial deployments for eVTOL craft still remains speculative in the U.K. and other markets, but there are some signs that regulatory developments are shifting in the company's favor.
Joby's business is still in a pre-revenue state, and that means that the company is valued at astronomical price-to-sales multiples, even based on the assumption that the company will record some sales this year. Joby's business could see dramatic sales growth in the not-too-distant future, but the company's forward price-to-sales multiple of more than 61,000 comes with a lot of risk.
If you're looking for exposure to the eVTOL investment trend, Joby Aviation remains a top investment opportunity in the space. On the other hand, investors should approach the stock with the understanding that it comes with a very high level of risk.
