Starting the lightning round, a caller inquired about Joby Aviation, Inc. (NYSE:JOBY) on September 8, and Mad Money host replied:
Okay, I’ve been against Joby because it’s losing a lot of money, and I’m going to stick with that position. It’s an interesting spec, but I would not put my money in it.
Long-Term Strategic Catalysts
Despite several financial headwinds, it could be argued that the company possesses strategic advantages that set it apart from typical pre-revenue startups. Joby Aviation, Inc. stands as a regulatory frontrunner in the rigorous Federal Aviation Administration type certification process. Moreover, the firm has secured heavyweight industrial backing, highlighted by a multi-year manufacturing alliance and substantial financial investment from Toyota, along with commercial validation through partnerships with Delta Air Lines and recurring U.S. defense contracts.
Bear Case and Financial Headwinds
Cramer’s warning centers on a fundamental economic hurdle. Developing, testing, and manufacturing electric aircraft requires massive upfront capital outlays long before commercial operations can scale. In its second-quarter report, Joby Aviation, Inc. posted a GAAP net loss of $245.4 million and used $202 million of cash, cash equivalents and short-term investments during the quarter, driven heavily by research and development. With management guiding for continued capital deployment through the second half of the year to support certification and manufacturing expansion, meaningful commercial profit remains distant. Additionally, navigating the final stages of aviation certification remains a demanding path where any regulatory holdup extends the runway required before achieving self-sustaining cash flow operations.
Institutional Sentiment and Short Interest
According to Insider Monkey’s hedge fund data, 35 hedge funds had a stake in the company in Q2 compared to 38 in the prior quarter. Among those hedge funds, Marshall Wace LLP showed a highly bullish sentiment toward the stock as it increased its holdings in Joby Aviation, Inc. by 7065% to 8 million shares, becoming the most prominent shareholder in Q2. The short percentage of the float sits at 17.13, highlighting continuous downside positioning from skeptics who remain wary of the company’s long cash-burn timeline.
While strategic backing from industrial giants like Toyota and Delta offers a compelling long-term thesis, Wall Street continues to treat Joby Aviation, Inc. as a high-beta speculative play. For investors weighing Cramer’s warning, the stock remains a high-stakes bet where future valuation will be dictated entirely by regulatory execution, manufacturing progress, and capital management rather than traditional balance sheet and earnings results.
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