Investing $10,000 in Joby Aviation Shares at the Initial Public Offering (IPO) Wouldnet's Earn You This Amount Now
Riding the wave with a stock shortly after it enters the public market can be a hazardous journey – something early investors in Joby Aviation (JOBY 2.97%) likely understand from personal experience.
Instead of the conventional initial public offering (IPO), Joby Aviation, an electric vertical take-off and landing (eVTOL) innovator, took its first leap into the public sphere in August 2021 after completing its merger with a special purpose acquisition company. While optimistic investors expected Joby Aviation stock to reach new heights, their investments have faced persistent storms.
The journey in the sky got bumpy for Joby
Launching its debut on the market with its new stock ticker JOBY, Joby Aviation shares started at $10.62 and climbed throughout the session, ending the day at a lofty $13.40. However, in the days that followed, the stock plummeted, currently trading at around $6 per share. Investors who purchased stock on the day of the SPAC merger have suffered a loss of approximately 61%. Those who put $10,000 into Joby stock now possess less than $3,900 of their initial investment.
Although Joby stock has not bolstered shareholder worth, it is premature to write off future growth as an impossibility. Joby Aviation has made steady strides towards obtaining the necessary approvals from the Federal Aviation Administration to commence commercial operations. Additionally, the company recently carried out an exhibition flight in Japan, which led to significant investment from Toyota, to the tune of $500 million.
Should this be the moment to invest in Joby?
Growth investors enticed by Joby's recent achievements should delve deeper before adding this eVTOL pioneer to their portfolios. Significant risks still loom over Joby, so investors may want to explore alternative options – such as Archer Aviation, which is also working to offer electric air-taxi services to prospective customers.
Despite the current challenges in Joby Aviation's finance, with shares trading at around $6, the company's future growth is not entirely dismissed. Joby's progress towards obtaining FAA approvals and recent investment from Toyota for $500 million indicate potential for improvement.
Given the persistent issues with Joby's stock and significant risks still present, investors considering growth opportunities might want to consider alternative options in the field, such as Archer Aviation, another company working on electric air-taxi services.
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