Key Points
Joby’s stock has stumbled since its market debut five years ago.
But a few major catalysts could drive its stock much higher over the next decade.
Joby Aviation (NYSE: JOBY), a developer of electric vertical takeoff and landing (eVTOL) aircraft, went public through a merger with a special purpose acquisition company (SPAC) five years ago. It started trading at $10.62, but it now trades at about $7 per share.
Image source: Joby Aviation.
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Why could Joby be a multibagger stock?
Joby's stock hasn't taken off yet because the FAA hasn't fully approved its first commercial flights. But when it does, its shipments of S4 eVTOLs -- which carry a single pilot and four passengers for up to 150 miles at up to 200 miles per hour -- could skyrocket.
Joby's backers include Toyota (NYSE: TM), which will manufacture the S4; Delta Air Lines (NYSE: DAL), which will use the S4 for last-mile "airport-to-home" flights; and Uber (NYSE: UBER), which will integrate its air taxi flights into its new Uber Air service. Over the long term, it plans to become a vertically integrated "transportation as a service" business that manufactures, owns, and operates its own air taxi network.
Once the FAA fully approves its first flights, analysts expect its revenue to surge from $53 million (mainly from its Blade Air Mobility helicopter services) to $435 million in 2028. Joby's stock might seem expensive at 18 times its 2028 sales, but Fortune Business Insights expects the global eVTOL market to expand at a 36.8% CAGR from 2026 to 2034. As an early mover in this nascent growth market, Joby could generate a tenbagger gain (or more) over the long term.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Uber Technologies. The Motley Fool has a disclosure policy.