"Joby Aviation has been the clearest vindication of the short thesis. The stock has fallen 26.1% year-to-date, dropping from $13.47 at the time of JPMorgan's call to $9.76 as of March 3. On February 27, 2026, JPMorgan formalized its view by maintaining an Underweight rating and reducing the price target to $7, citing ongoing losses and cash burn despite a Q4 earnings beat."
"With about $475 million in annual cash burn and 2026 guidance calling for $340 million to $370 million in first-half cash usage alone, the math remains punishing. For retail investors, the stock is a speculative bet on FAA certification timing, not a near-term value play."
"Operationally, Joby isn't without progress: 94% of means of compliance accepted by the FAA, Dubai passenger flights targeted for 2026, and a $500 million Toyota partnership provide long-term credibility. But with about $475 million in annual cash burn and 2026 guidance calling for $340 million to $370 million in first-half cash usage alone, the math remains punishing."
JPMorgan Chase issued short recommendations on three stocks in late January 2026. Joby Aviation has validated the bearish thesis, falling 26.1% to $9.76 with JPMorgan maintaining an Underweight rating and $7 price target. The company faces significant cash burn of approximately $475 million annually despite operational progress including FAA compliance milestones and a Toyota partnership. Fortinet has remained relatively flat, declining only 1.51% while experiencing volatility, with the bearish thesis gaining traction among analysts. Transocean's performance diverges sharply from the short thesis. The mixed outcomes reflect varying fundamental challenges and market dynamics across the three positions.
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