Should You Buy, Hold or Sell JOBY Stock Post Q2 Earnings?

Core Insights - Joby Aviation reported disappointing second-quarter 2025 results, with a wider-than-expected loss and a significant revenue decline of 46.4% year-over-year, missing consensus estimates [1][10] Financial Performance - The company incurred a loss of 24 cents per share, which was worse than the Zacks Consensus Estimate and the previous year's loss of 18 cents per share [2] - Quarterly revenues were negligible, missing the Zacks Consensus Estimate by 70%, and the company did not report any revenues in the year-ago quarter [2] - Total operating expenses increased by 16% year-over-year, driven by a 20.7% rise in research and development costs [3] - Adjusted EBITDA for the second quarter was a loss of $131.6 million, reflecting employee-related costs associated with aircraft development [3] - Joby ended the quarter with cash, cash equivalents, and short-term investments totaling $991 million, up from $932.9 million at the end of 2024 [4] Recent Developments - Joby plans to start carrying passengers in Dubai next year and has announced a deal to acquire Blade Air Mobility's urban air mobility passenger business for up to $125 million [6][10] - The acquisition would provide Joby with immediate access to Blade's urban air routes and infrastructure, particularly in New York City, potentially giving it a competitive edge [7] - Joby is expanding its site in Marina, CA, which will double its aircraft production capacity to 24 aircraft per year, aiding in the launch of air taxis [8] Market Performance - Joby shares have recently gained 31.8% over the past 30 days, outperforming the Zacks Transportation-Airline industry and competitor Archer Aviation [9] Valuation Concerns - Joby stock is considered to have a stretched valuation, trading at a price-to-book value of 14.67X, which is higher than its industry and peer Archer Aviation [15]