Joby Aviation Stock (JOBY) Jumps on Blade Acquisition

Joby Aviation (NYSE: JOBY) is on the rise this morning, gaining 6% pre-market as the acquisition of Blade Air Mobility for up for $125million, coupled with positive Q2 developments and a strategic defense collaboration puts the firm on the radars of many.

Joby's stock price has demonstrated considerable strength in recent sessions, adding 61% on the month leading into this morning's move higher.

Technically, Joby is a strong uptrend, having successfully breached key resistance levels, whilst trading above both 50-day simple moving average (SMA) of $11.31 and the 200-day SMA of $8.05.

The acquisition of Blade Air Mobility is a central topic of discussion, and had been on the radar leading into the new week. Analysts believe that combining Joby's electric vertical takeoff and landing (eVTOL) technology with Blade's established helicopter ride-share network could create significant synergies in the urban air mobility market. Blade's medical transport services do not form part of the agreement.

Adding to the positive momentum, Joby announced a strategic partnership with L3Harris Technologies at the end of last week, aiming to develop a military-grade VTOL aircraft tailored for both piloted and autonomous missions. This hybrid gas turbine-electric VTOL is designed to address critical needs in contested logistics, counter-drone operations, and electronic warfare.

Flight testing is scheduled for fall 2025, with operational demonstrations anticipated in 2026. This move signals Joby's strategic diversification into the defense sector, potentially unlocking new revenue streams and bolstering its technological capabilities.

Markets are also eagerly awaiting Joby's Q2 2025 financial results. The report is expected to provide updates on the company's progress towards FAA certification, its cash burn rate, and guidance for the commercial launch of its air taxi services in both U.S. and international markets. Joby currently maintains a strong liquidity position, with $812.5 million in cash and short-term investments, further strengthened by a recent investment tranche from Toyota.

Recent Q2 earnings highlighted significant progress toward FAA certification, with 62% of internal work for Stage 4 completed and 43% of FAA requirements met. The company conducted over 800 test flights in the quarter, utilizing a fleet of five aircraft, including a hydrogen-hybrid variant. Analysts project a cash burn of $500 million to $540 million for 2025, reflecting the capital-intensive nature of the industry.

The combination of the acquisition , defense contracts, and progress on certification are driving the current upward trend in Joby's stock. The company's ability to navigate the regulatory landscape and effectively manage its cash burn will also be critical factors in its long-term success.