JOBY is a buy for high-risk investors; valuation is at historic lows (29x forward P/S) despite business progress and revenue-doubling acquisition.

On August 11th, Joby Aviation made an acquisition of Resident Sciences that could roughly double the company's revenue.

I've had a chance to evaluate that acquisition, the impact it could have on the company's cash flow, and evaluate the business, considering this acquisition and the progress the company has made overall to determine if this is a buying opportunity for investors with a very high risk tolerance.

Right? These are the EV toll companies are some of the highest risk investments you can consider.

let's answer if Joby Aviation stock is a buying opportunity for investors with a high risk tolerance. So, Joby Aviation very early stage company still developing the technology electric vehicle takeoff and landing.

This could provide great value for a lot of people on the higher income side. Initially, I don't know if the technology will ever get good enough, if the technology will ever become widespread enough to reach populations outside of those with higher incomes that really value their time and don't want to spend time in traffic, that don't want to be driving in rush hour traffic or driving to locations.

And so revenue is still very early stage, 116 million over the trailing 12-month period.

But the acquisition I talked about, so on August 11th, Joby Aviation announced an agreement to acquire Resident Sciences, a defense technology company for about 500 million, 450 in cash, 50 in stock.

It's big enough to roughly double Joy's revenue base, Joby, I should say, revenue base. And it also expands the application of the technology.

Right, I mentioned this is primarily suited before this acquisition. The company's products were primarily suited for densely populated cities where people want to travel without fighting through that traffic.

Well, now this expands the company's technology into defense.

And when you're thinking about defense, cost is not the primary consideration. When you think about governments spending on defense, the capability is more of a consideration. So that's why a lot of times you see new technologies developed by governments and government institutions first because they're interested in developing the technology even if the cost doesn't make sense.

Governments don't really consider cost all that much, right? They just spend money. It's not their money to begin with, right? They're spending other people's money. So, when you're not spending your own money, you're not really thinking about cost.

You're thinking about other things that provide you other types of value outside of the usual economics when you're dealing business to consumer. It's a whole different equation when you're dealing business to government, right?

and Joby. This allows Joby to capitalize on that relationship, to capitalize on a different group of buyers that are not price sensitive.

So when you're evaluating a company like Joby Aviation in its early stages of development, the cash flow from operations is more important than profit margin because profit margins consider expenses that are non-cash expenses.

When I'm thinking about a very early stage company, cash flow becomes more important, especially when the company is so significantly negative in cash flow. I like to look at this and determine if they're making progress, how long it will take for the company to become self- sustaining.

Right? That's a big inflection point when you're thinking about early stage companies like Joby Aviation. A big milestone to hit is to become self- sustaining where your cash flow from operations is at least 0% or positive because then you no longer need to go to investors to fund your operations.

You can sustain your business on your own. You don't need to go ask for money. You don't need to go borrow money. You probably still will do that, but opportunistically if the price is right.

You won't go in a desperate situation where investors will determine if your company succeeds or not. Because if investors withhold capital, your business might just go out of business.

You won't have the time to develop your technology. You won't have the time to get to a sustainable level of revenue where your business can be operational and selffunding.

So right now, Joby Aviation very far away from that goal. negative 525% in cash flow from operations. If we zoom in here for the last year, we'll get a closer figure and we can see that they're making progress.

Although the progress doesn't look all that incredible when we looked at it on a longer term perspective, when we zoom in here and look at it in the last year, we can see it's improved dramatically from -2,000% to -500%.

And with the acquisition and the additional revenue coming in, that should improve the company's cash flow from operations to sales ratio even further. That said, the company had to spend money to make that acquisition.

They paid for it mostly in cash and so the balance sheet took a bit of a downtrend as a result of that.

But the good news is they have a very strong balance sheet. And this is another thing that becomes increasingly important when you're evaluating a company like Joby Aviation. How much cash do they have in the bank account?

But when I'm looking at a company like Joby Aviation, the balance sheet becomes very high up in the things that I rank as being important. And Joby Aviation has a very strong balance sheet.

$2.265 billion in cash and short-term investments in the bank. That gives the company runway. It gives them time to hit that next milestone and make an acquisition or make an opportunistic move if it opens up.

Like recently it opened up to make this acquisition and $2.265 billion is plenty even though it's down from the roughly $2.5 billion it had at its peak.

And Joby Aviation did a good job of raising capital when investors were more excited about the stock when the valuation was more expensive. they took the opportunity to raise capital and a lot of companies did.

I I will say that, you know, during the euphoria of these high-risk investments, a lot of the quantum computing stocks, the EV toll stocks, the electric vehicle stocks, a lot of these companies when their stock prices soared unjustifiably, they took the opportunity to sell stock and raise cash, right?

They said, "Hey, this is a great opportunity." investors got a little ahead of themselves. They got too excited with our business potential and they bid up our stock price. Let's take the opportunity and get cash.

And they did that smartly. A lot of companies did.

So now Joby Aviation is not one of those stocks that are highly valued by investors. It's not filled with euphoria and enthusiasm, right? All of that has kind of flowed away, right?

investors are not so excited about these kinds of companies anymore. The enthusiasm of euphoria of yester year is gone.

But for a company like Joby Aviation it's not there anymore. The price to sales ratio forward one year is the cheapest it's ever been. It's now trading at a forward price to sales of 29.

At one point in 2025, it was selling at a forward price to sales of over 140. So, it's about 1/4 to 1/5th the valuation it was trading for a little over a year ago.

Meanwhile, the business has made progress. It's a much better business today than it was in October of 2025. Additionally, if we look at the year-to-ate returns, Joby Aviation stock is down 51% so far in 2026.

And at one point, it started off the year it was trading at almost $16 per share and it's now trading at $6 per share. So, it's lost a considerable amount of the value and that euphoria and enthusiasm.

That balloon is kind of lost a lot of its air and it's now down near the ground level.

So in my opinion and in my investment strategy, these are the times to capitalize on these high-risk, highreward type investments. Not when the enthusiasm it has is at its height.

Not when everyone and their cousin is talking about the stock. But when the stock is down here, when enthusiasm has evaporated, when no one is talking about it, when all the enthusiasm is somewhere else, that's when you circle back and you look at these companies and you say, "Okay, now it's a great opportunity to try and hit a home run for a high-risk, highreward situation.

These are the types of moments. These are the type of companies you want to go into,

not the SpaceX's of the world where everyone is talking about it, everyone wants it, the prices are at astronomical levels, trading at $2 trillion market capitalizations when all of the potential is already baked into the price and then some.

Those are the situations to avoid and those are the situations I've avoided in the past.

And Joby Aviation was one of those situations in the past that I warned investors about to avoid, but now I think it's worthwhile. Now I'm upgrading Joby Aviation stock to a buying opportunity and I'll make that update today on September 10th, 2026.

But again, let me remind investors, they should only be considered for very high risk tolerant investors. This is a high high risk almost the highest risk investment you can consider along with I group it along with the quantum computing stocks and some other stocks that are all the way in the end of the highest risk stocks you could potentially buy.

But also this comes with very high potential reward. It's one of those swing for the fences type investments.