Al Root

Joby Aviation stock fell on Monday after Goldman Sachs recommended investors sell the maker of electric vertical takeoff and landing aircraft.

Shares were down 6% at $13.57. The S&P 500 and Dow Jones Industrial Average were down about 0.6%.

The drop came after Goldman launched coverage of the stock with a Sell rating and a $10 price target, according to FactSet.

Joby is in a good position for an eVTOL maker. But its valuation is too high, given that no one knows how the industry will develop.

Goldman didn't immediately respond to Barron's request for the full research report.

The eVTOL aircraft promise quiet and cheap urban transportation. The technology is relatively new, though, and Joby's eVTOLs aren't certified for commercial service in the U.S.

Many investors still don't know about the industry or how consumers will adopt the technology. But they do see potential.

Today, Joby has a market value of about $13 billion -- roughly 10 times estimated 2029 sales, according to FactSet. The company isn't expected to report positive earnings before interest, taxes, depreciation, and amortization, or Ebitda, until 2030.

Overall, one out of 10, or 10%, of analysts covering Joby rate the stock Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. Four out of 10%, or 40%, rate shares Sell. The average Sell-rating ratio is about 7%.

Like Goldman, valuation is one reason for Wall Street's bearishness. The average analyst price target for Joby is about $13, a little below where the stock is trading.

The stock is up about 61% over the past 12 months. Realizing those gains has taken investors on a wild ride. shares have ranged from about $5 to $21.

Joby's peer, Archer Aviation, might have been caught up in Goldman's call as well. Its shares were down 2.5%.

Write to Al Root at allen.root@dowjones.com

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December 01, 2025 10:42 ET (15:42 GMT)

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