Jim Cramer on Joby: “It’s Way Too Risky”

Joby Aviation, Inc. (NYSE:JOBY) was among the stocks Jim Cramer covered on Mad Money as he discussed the wave of IPOs being the market’s possible biggest threat. Starting the lightning round, a caller asked about the stock, and Cramer remarked:

The problem with Joby, it’s way too risky. If you’re just starting out, I want you to be in something that could actually go up over time, and you don’t feel like you get disgusted if it drops real quick. That’s what could happen with Joby. Let’s be careful out there.

Image by Sergei Tokmakov Terms.Law from Pixabay

Joby Aviation, Inc. (NYSE:JOBY) designs and makes electric vertical takeoff and landing aircraft for use in aerial ridesharing. The company is also developing a related app. On March 18, a caller was bullish on the stock and inquired about it. In response, Cramer said:

Okay, I am not as big a fan as you are. I think it’s incredibly speculative, and I’m in that era of no more magical investing. They’re losing too much money, and when companies are losing too much money, even if they have a very exciting idea, I’ve got to pull in my horns here because we have a very, very tough market, and we can’t deal with companies that are losing a lot of money.

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