Flying over 33% higher over the past year, shares of Joby Aviation (JOBY -1.26%) have gained more altitude than the S&P 500 which has climbed about 22%. Growth investors who have had the air taxi stock on their radars, consequently, may conclude that the stock's recent ascent means that it's unlikely to continue flying higher.
However this is hardly the case. In fact, there's good reasons for investors to still believe that shares of Joby Aviation can soar even higher into the wild blue yonder.
Don't forget the important catalyst that can power the stock to new heights
Clearly, investors felt motivated to click the buy button on Joby stock for most of 2024 in response to the company's numerous noteworthy achievements. What potential investors may be missing though is that Joby hasn't even commenced commercial operations yet. In its Q3 2024 shareholder letter, Joby projected it will start commercial operations as soon as the end of 2025.
Currently, Joby is still working to secure the necessary Federal Aviation Administration (FAA) certifications that are necessary for the company to start providing air taxi service to customers.
Several weeks ago, Joby announced that it has entered the final phase of FAA certification before the start of commercial operations. In fact, at the time of the announcement, Joby distinguished itself from electric vertical take-off and landing (eVTOL) peers, asserting that it's the "first eVTOL manufacturer to complete three of five stages of the FAA type certification program and is more than 40 percent complete with the Company’s work for the fourth stage."
Should growth investors land Joby Aviation in their portfolios?
While plenty of opportunities exist for Joby Aviation, it's imperative that potential investors remember an investment is still speculative. There's no guarantee that Joby will receive the requisite FAA certifications, and, even if it does, there's no certainty the company will attract customers to its air taxi service. Nonetheless, those comfortable accepting the inherent risks with buying Joby stock may find that they are ultimately rewarded with substantial gains that dwarf the stock's rise over the past year.
