Motley Fool flags potential attractive entry point for growth stocks Joby and Archer

Long-term investors should take a closer look at the shares of air taxi developers Joby Aviation and Archer Aviation, Motley Fool analyst George Budwell says in a recent article titled "2 Unstoppable Growth Stocks I'd Buy Now." Both companies remain unprofitable, and the market they operate in is still in its formative stage and faces a wide range of regulatory and operational challenges. But the potential rewards are enormous: the market for electric vertical takeoff and landing vehicles (eVTOLs) could reach $1 trillion by 2040, versus $3.5 billion in 2023. Both Joby and Archer have the partners, capital, and technology to lead the sector, Budwell writes. He believes the "potential reward is enormous."

Joby has a market capitalization of $12.9 billion, and the stock has a consensus rating of “buy” at an average target price of $13.80 per share, for just 2.3% upside.

Joby is the leader in the race to bring eVTOL taxis to market, the Motley Fool analyst writes. The company’s aircraft are in the final stage of certification by the relevant regulator, after which it will be permitted to begin commercial flights, presumably in 2026.

Joby shares have fallen nearly 30% from their all-time high in August and now trade at $14.12 per share. That is still a high valuation for a company with minimal revenue – $22.9 million in the third quarter, which translated into a net loss of $401.2 million – but “Joby's partner roster suggests the smart money sees something real here,” Budwell notes. Automaker Toyota has invested nearly $900 million in the company. Chipmaker Nvidia is collaborating on autonomous flight technology. Blade, Joby’s subsidiary, is partnering with Uber. Blade already operates helicopter-based air taxi services and completed more than 50,000 flights in 2024, with infrastructure in major markets including New York and cities in southern Europe.

Joby has conducted 600 demonstration flights, and it recently secured a $250 million aircraft sale in Kazakhstan. Budwell believes this shows building international demand ahead of certification.

Archer has a market capitalization of $5.5 billion, and the consensus rating on the stock is “hold.” Analysts’ average target price is $12.70 per share, which implies roughly 70% upside.

Archer has taken a different strategic path, selling aircraft to operators while developing the physical infrastructure for urban air mobility, Budwell notes.

The company’s stock has fallen almost 44% from its all-time high in May and now trades at $7.50 per share. Even so, Archer has “quietly assembled the pieces for a compelling long-term story,” according to Budwell. For example, it recently acquired Hawthorne Airport near Los Angeles for $126 million, securing a strategic hub less than three miles from LAX and close to SoFi Stadium ahead of the 2028 Olympics in Los Angeles. 

 Archer’s balance sheet is robust, with more than $2 billion in liquidity to support development for years. Its partners include airlines Southwest and United, as well as automaker Stellantis.

During the recent drawdown, Archer shares were bought by Cathie Wood’s Ark Invest fund. Budwell notes this suggests at least one major investor sees the pullback as an opportunity rather than a warning.