Cathie Wood Keeps Buying Joby Aviation Stock. Should You?

Core Viewpoint - Joby Aviation (JOBY) is experiencing a high valuation with a market cap of approximately $10 billion, trading at an EV/revenue multiple exceeding 200x, primarily due to its limited revenue of $23 million last quarter, which is significantly higher than traditional aerospace peers [1][8]. Financial Performance - Joby reported $22.6 million in revenue for Q3 September 2025, a substantial increase from nearly zero revenue in the same quarter the previous year [11]. - The company incurred a net loss of $0.48 per share, which was worse than the consensus loss estimate of $0.19. R&D expenses rose to $149 million, an 18% increase year-over-year, while SG&A expenses were $45 million [12]. - Joby ended the quarter with approximately $978 million in cash and equivalents, supported by a $576 million equity raise in October, with an operating cash burn of about $357 million year-to-date [13]. Market Activity - Joby stock has been volatile, with a 52-week high near $21 in spring 2025, but shares have since retreated approximately 36% from that peak following a $1.2 billion equity raise announcement [2][3]. - Cathie Wood's ARK Invest purchased about 780,000 shares of Joby on January 29, valued between $8.7 million and $10.4 million, indicating a strong belief in the company's long-term potential [6][9]. Business Model and Strategy - Joby is developing a five-seat, all-electric VTOL aircraft aimed at urban travel, with a target range of 150 miles and a cruise speed of 200 mph. The company is leveraging partnerships with Uber and Toyota to enhance its service offerings [4]. - The company has conducted over 600 test flights in 2025 and is working on integrating its services with the Uber app, which could position it as a leader in the emerging urban-air mobility market [14]. Analyst Sentiment - The current analyst consensus on Joby stock is a "Hold," with a median price target of around $12.14. Analysts emphasize that successful execution of milestones is crucial for the stock's performance [15].