Why a Nearly $30 Million Bet on BETA Stock Says More Than Its 26% Post-IPO Drop

On January 23, Liberty Street Advisors, Inc. disclosed a new position in BETA Technologies (NYSE:BETA), acquiring 999,202 shares in a trade estimated at $28.19 million based on quarterly average pricing.

What happened

According to a SEC filing dated January 23, Liberty Street Advisors, Inc. reported acquiring 999,202 shares of BETA Technologies (NYSE:BETA), establishing a new position. As a result, the fund's position in BETA stood at $28.19 million at quarter's end, reflecting the full value change from the new holding.

What else to know

This was a new position for Liberty Street Advisors, Inc, with BETA now representing 47.15% of its 13F reportable assets under management.

Top holdings after the filing:

• NYSE:BETA: $28.19 million (47.15% of AUM)
• NYSE:VOYG: $17.82 million (29.8% of AUM)
• NYSE:CRCL: $10.31 million (17.2% of AUM)
• NASDAQ:OMDA: $3.47 million (5.8% of AUM)

As of January 22, shares of BETA were priced at $25.18, about 26% below their November IPO price of $34.

Company Overview

Company snapshot

• BETA Technologies offers electric aircraft (ALIA-CTOL, ALIA VTOL, ALIA Defense VTOL), advanced propulsion systems, batteries, charging equipment, and ground support solutions for the aviation sector.
• The company generates revenue through sales of aircraft to military and commercial customers, replacement batteries to operators, propulsion systems to eVTOL manufacturers, and charging infrastructure to governments and aviation operators.
• It serves cargo and logistics, medical, defense, and passenger markets, with customers including military agencies, commercial logistics operators, and state governments.

BETA Technologies, Inc. is an electric aviation company focused on developing and manufacturing electric aircraft and supporting infrastructure. The company leverages proprietary propulsion and battery technology to address both commercial and defense market needs. Its integrated approach to aircraft, components, and charging solutions positions it as a key innovator in the emerging electric aerospace industry.

What this transaction means for investors

When a manager is willing to put nearly half of reported assets into a single name, it’s a sign of conviction in an operating trajectory that perhaps has not yet shown up cleanly in the income statement.

BETA is still burning cash, but the latest quarter shows why some investors are willing to underwrite that risk. Revenue climbed to $8.9 million, nearly triple year over year, driven by defense services and earlier-than-expected motor deliveries. More important is the balance sheet. Cash and equivalents stood at roughly $688 million at quarter-end, before factoring in about $1.1 billion in IPO net proceeds expected to be recognized later.

Meanwhile, the company logged initial customer deliveries, secured FAA certification milestones, and disclosed a civil aircraft backlog of 891 units valued at $3.5 billion. Plus, a $300 million strategic equity investment from GE Aerospace further validates the technology stack and hybrid roadmap.

For long-term investors, this kind of sizing usually reflects the belief that execution, not sentiment, will decide the outcome.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Omada Health. The Motley Fool has a disclosure policy.