The 1 Simple Reason to Buy Joby Aviation Stock
Key Points
Shares of the air taxi maker have declined more than 50% in the past 12 months.
Joby is acquiring the defense-tech company Resonant Sciences for $500 million.
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Investors in Joby Aviation (NYSE: JOBY) have been experiencing turbulence lately, as the stock has plummeted more than 50% over the past 12 months. Concerns over cash burn and a lack of commercial revenue from its core air taxi business have the stock languishing near its 52-week low.
Still, there's one simple reason to buy Joby Aviation: The company's cash position is strong enough to last until commercial launch.
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Joby ended the second quarter of 2026 with about $2.3 billion in cash and short-term securities. It has more cash than debt, and that's important in an industry with extraordinarily high overhead.
Yes, Joby's cash burn is high and ramping up, particularly after the company announced its intention to acquire Resonant Sciences for $500 million. Still, its cash runway is more than sufficient, which should put investors more at ease.
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Joby is also increasing its revenue, largely due to subsidiary Blade's strong performance. Resonant Sciences boasts more than $100 million in revenue, and Joby has a manufacturing partnership with Toyota Motor that, if successful, should help it scale immensely.
There's a lot of execution risk in play for Joby. It operates in a highly regulated, capital-intensive business. Operating expenses for the second quarter of 2026 came in at just under $300 million. Mass adoption of its core commercial air taxi business is still years away, even if operations begin really ramping up in 2027.
Joby is doing an excellent job of scaling through acquisitions, so while the short-term pain of the spending can rattle investors, the long-term upside potential is hard to ignore. Joby's ability to maintain its strong cash position while it waits for full FAA certification is a simple reason to buy.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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