Goldman Sachs says one of retail traders' favorite long-shot bets may be overhyped

Core Viewpoint - Retail traders are heavily investing in EVTOL stocks, particularly Joby Aviation and Archer, despite Goldman Sachs expressing concerns about overhype in the flying car market [1][2][3] EVTOL Market Performance - EVTOL stocks have shown volatility in 2026, with Joby stock increasing by 70% year-to-date, while Archer has decreased by 22%. Other competitors, BETA Technologies and Eve Holding, have also seen declines of 16% and 13% respectively [2] - High retail investor participation is identified as a significant factor contributing to the volatility of these stocks [2] Retail Participation and Analyst Ratings - Retail participation in Joby and Archer is more than double that of the S&P 500, indicating strong retail interest [3] - Goldman Sachs has initiated coverage with a "Sell" rating for Joby, despite its strong performance this year, and has a "Buy" rating for BETA Technologies, citing it as the best-positioned company in the sector [3][4] Company-Specific Insights - Joby is noted for having the most flight hours and a comprehensive business model, but faces regulatory hurdles and high capital requirements [4] - Archer is viewed cautiously due to its lack of vertical integration, which may lead to lower margins, despite its rapid progress [5][6] - Eve Holdings is considered to be lagging behind its competitors, receiving a Neutral rating from analysts [5] Market Sentiment - Retail traders appear to favor Archer over Joby, despite Joby's better stock performance, as indicated by Stocktwits data from 2025 [6]