The month of August hasn’t been kind to Joby Aviation (NYSE:JOBY) investors, as the company’s share price has lost more than 20% since the company’s Q2 2025 earnings earlier this month.
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On the one hand, there was certainly ample disappointment that flowed from the earnings report, as JOBY suffered both top- and bottom-line misses. Its EPS GAAP of -$0.41 came in -$0.22 below forecasts, while its revenues of $20,000 was a far cry from the $1.57 million that had been projected.
Still, things aren’t all doom and gloom. The company reported marked progress on FAA certification, for instance, has a major deal with the Saudi Arabian firm Abdul Latif Jameel that could be worth up to $1 billion, and recently bought Blade Air and its licenses to operate heliports in heavily populated areas in the U.S. and Europe.
The share price remains up over 80% year-to-date, reflecting plenty of bullish sentiment prior to the recent dip. However, one top investor known by the pseudonym JR Research thinks the time to fly far, far away has arrived.
“Given frothy valuations and unproven fundamentals, I’m urging investors still sitting on substantial gains … to get out before this bubble implodes in your face,” explains the 5-star investor, who is among the top 1% of TipRanks’ stock pros.
The investor notes that Wall Street is expecting “hockey-stick type of revenue” growth in the years ahead, with projections for $28 million in 2026 and $130 million in 2027. Being one of the first movers in this potentially lucrative space could indeed bring in plenty of dollars, acknowledges JR.
However, the investor also points out that JOBY is trading at almost 100x its FY 2027 revenues – and is not expected to turn a profit until 2029.
“An adverse reversal in market sentiments (such as when profit taking intensifies) could send JOBY investors sprawling for cover, as they seek to protect their speculative gains,” adds JR.
The investor believes that this reversal is now upon us, with the company’s share price having now fallen some 35% from a recent peak. And JR predicts that more losses are coming.
“The chickens eventually come home to roost, bedevilling these investors as they allowed their eVTOL fever to supplant and overwhelm their sense of reality and optimism,” emphasizes JR Research, who rates JOBY a Sell. (To watch JR Research’s track record, click here)
Wall Street isn’t flying away from JOBY just yet, though there does seem to be an abundance of caution. With 5 Hold ratings – to go along with a single Buy and Sell apiece – JOBY carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $11.33 has a downside of ~24%. (See JOBY stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.