Here's Why Joby Aviation Stock Slumped in March
Joby Aviation's (NYSE: JOBY) stock declined by 17.9% in March, according to data from S&P Global Market Intelligence. It came as part of a broad-based sell-off in risk assets (for reference, its peer, Archer Aviation, declined 27.4% over the same period), in line with the S 500's overall decline. Higher-risk assets are often sold off inordinately in such times, as there's a flight to safety. That said, it was a mixed month operationally for the company.
Starting with the negative news, Joby and Archer, for that matter, are being impacted by the conflict in the Persian Gulf. In late February, just days before the U.S. and Israel attacked Iran, Joby and announced Uber Air, which will allow customers to book Joby air taxis via the Uber app. Given that the first customers for the service were expected to be in Dubai, the announcement coudn't have come at a worse time.
Archer was also targeting the United Arab Emirates (UAE) for its piloted flights, and has deals in place to test and ultimately fly electric vertical take-off and landing (eVTOL) air taxis in Saudi Arabia as well. Unfortunately, until the conflict in the region is decisively resolved, Joby and Archer's plans are likely to be on hold.
Source Fool.com
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