Aiming for a 100-Bagger? This Stock Has the Potential
The market says Joby Aviation (NYSE: JOBY) is worth about $2.9 billion right now. To make a 100-bagger with this one, its market capitalization would have to reach $290 billion one day. Can this air-taxi pioneer pull it off? I'm very bullish on the company's future. But Joby is a high-risk stock. So my investment here is tiny (way under 1% of my family investment portfolio).
I'm bullish on this stock because I'm negative about self-driving cars. I don't think the collective intelligence at Alphabet or Tesla can sufficiently plan for all the variables of driving a car in the street. Even if the artificial intelligence-based technology works and reduces car collisions, every accident is a major lawsuit waiting to happen. For example, suppose Tesla manages to reduce the accident rate from 6 million a year (the total number of car accidents in 2018 in the U.S. and assuming all cars are self driven) to 1 million -- which would be incredible -- that's still 1 million lawsuits a year the company will face.
Joby, meanwhile, is changing the transportation landscape in a three-dimensional way. There's almost zero traffic in the sky. The vehicles are way faster and just as quiet. I think Joby could easily go up 10 times in value, just with human pilots. But if robots start flying those things? The sky's the limit.
Source Fool.com
