"An October equity offering raised approximately $514 million (with net proceeds of $576 million), but investors who were diluted by the move didn't like that the offering was priced 11% below where the stock had been trading. Its just released Q3 report also showed a much wider-than-expected loss of $0.48 per share compared to consensus estimates of $0.19, highlighting investor concerns over ongoing cash burn and delayed profitability."
"There are several factors behind Joby's decline. As a pre-commercial company, its reported revenue of $22.6 million was mostly from Defense Dept. contracts and the acquired Blade service. However, this was overshadowed by the big EPS loss, missing estimates badly due to high R&D and manufacturing costs. Cash burn also hit $106.56 million in operations, though the balance sheet remains strong at $978 million before the equity offering. Broader market jitters, including aerospace sector headwinds and economic uncertainty, have amplified"
Stanley Druckenmiller managed billions for George Soros and ran Duquesne Capital, now managing personal wealth via Duquesne Family Office with high-conviction bets. Joby received a bullish signal shortly before its third-quarter earnings and signed a letter of intent for up to $250 million in aircraft and services sales in Kazakhstan. Joby's share price swung from around $8 to nearly $21 then fell below $14. An October equity offering raised about $514 million but diluted investors because it was priced below recent trading. Q3 showed a $0.48 EPS loss versus $0.19 expected, revenues of $22.6 million largely from Defense contracts and Blade, and cash burn of $106.56 million with $978 million on the balance sheet pre-offering amid wider market and aerospace headwinds.
Read at 24/7 Wall St.
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