Despite some rather violent price action mostly to the downside in the markets today, there are some outperformers investors are focusing on. Among today’s winners is Joby Aviation (NYSE:JOBY). Currently, JOBY stock has surged more than 12% on rather bullish price action in early afternoon trading.
For investors in Joby, this move is much appreciated. Like many of its de-SPAC peers who went public via special purpose acquisition companies last year, JOBY stock has underperformed. From its initial reference price of $10 per share, JOBY stock had previously sunk as low as $3.61 in February. However, today’s move is signaling a comeback, bringing shares back toward the $6 level.
Much of this rather sharp selling pressure had been related to an accident earlier this year. The incident happened during a routine flight of the company’s first pre-production prototype in February and is still under investigation. Joby is also working with the Federal Aviation Administration (FAA) and Nation Transportation Safety Board (NTSB) on its future flight plans.
Today, though, a key update on test flights as well as otherwise positive earnings has JOBY stock moving higher. So, let’s dive into what investors are watching with these shares right now.
Why Is JOBY Stock Surging Today?
Today, Joby announced that it has resumed flight testing at its California pilot production facility with its second pre-production prototype aircraft. This testing appears to be going much better.
Overall, Joby has reported 38 test flights, with its prototypes reaching speeds of up to 90 miles per hour. The company has also already received approval to fly from the FAA and the U.S. Air Force. However, ongoing concerns around the recent accident have weighed on JOBY stock.
Now these headwinds may be rearview mirror, though. On top of resuming flights, Joby also reported earnings yesterday and they appear to have went over well. The company’s forward outlook has been emboldened by its resumption of flights and investors seem to like what they’re hearing
As with other story stocks, JOBY is among the higher-risk, higher-upside options in the market. That said, investors have good reason to focus on the name today.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
