Here’s Why Joby Aviation Inc. (JOBY) Is Among Monday’s Top Losers

We recently compiled a list of the 10 Firms Drop on Bearish Statements, Disappointing Earnings. In this article, we are going to take a look at where Joby Aviation Inc. (JOBY) stands against the other stocks.

Ten companies—mostly under the quantum computing sector—kicked off the trading week leading declines amid not-so-optimistic statements from chief executives and disappointing earnings updates that have weighed in on investor sentiment.

Meanwhile, Wall Street’s main indices ended mixed, with the Dow Jones and S&P’s main index the only gainers, up 0.86 percent and 0.16 percent, respectively. Meanwhile, the Nasdaq Composite dropped by 0.38 percent.

To come up with Monday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A futuristic electric vertical takeoff and landing aircraft soaring through the sky.

Joby Aviation, Inc. (NYSE:JOBY)

Joby Aviation, Inc. (NYSE:JOBY) kicked off Monday’s trading on a sour note, losing 8.92 percent to close at $7.96 after investment research firm JP Morgan downgraded its outlook for the company to “underweight” from “neutral” previously.

JP Morgan analyst Bill Peterson said he believes it was already time for an “altitude adjustment” for the electric vertical take-off and landing (eVTOL) company. His Joby rating went to “sell” from “hold,” but increased the target for the stock price to $6 from $5.

The “stocks began to inflect in the month leading up to the election and have sustained the outperformance over the rest of Clean Tech [sector] since the Trump victory,” Peterson said.

Joby Aviation, Inc. (NYSE:JOBY), along with its counterpart Archer Aviation, “are trading as though [aircraft] type certification has already been successfully completed,” he said. Both are likely seen as “speculative tech beneficiaries aligned with the likes of retail favorites such as Tesla …and Rocket Lab,” he said.

Overall JOBY ranks 10th on our list of Monday’s top losers. While we acknowledge the potential of JOBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JOBY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.