Why Joby Aviation's Move Into Defense Is a Bullish Sign for Investors

Written by Catie Hogan for The Motley Fool

Joby's stock has fallen more than 50% in the past 12 months.

Resonant reported more than $100 million in revenue last year.

Joby Aviation (NYSE: JOBY) is moving deeper into the defense sector. The electric air taxi maker announced plans to acquire defense-tech company Resonant Sciences for $500 million.

The news caused a short-term drop in the stock as investors weighed the cost against the longer-term opportunity. Ultimately, this move is good for investors, as Joby diversifies its offerings and enters a more lucrative, profitable space.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

The deal gives Joby an established presence and credibility within the defense sector. Resonant generated more than $100 million in revenue in the past 12 months. Its 40% year-over-year revenue growth is substantial for Joby, which has already used acquisitions to generate revenue.

Last year, Joby acquired Blade for $125 million. Blade accounts for more than 90% of Joby's current revenue.

The deal also allows Resonant to become Joby's dedicated defense business, and Joby will remain focused on its commercial air taxi pursuits. The integration of the two companies' technologies will also boost capabilities, particularly within autonomous defense systems, which is expected to be a highly lucrative market. Air taxis face intense regulatory scrutiny and hurdles, with mass adoption likely still years away.

Joby's move into defense is expensive in the immediate term, but, more importantly, it diversifies its revenue. The $500 million deal, which is structured as $450 million in cash and $50 million in common stock, will be well worth it as Resonant continues to sign new contracts. The short-term drop in stock price looks more like an opportunity than a warning.

I'm bullish on this acquisition. Joby's stock has fallen more than 50% in the past 12 months and is quite volatile. Investors should anticipate that volatility will remain as the air taxi industry is still in its nascent stage. This moment presents an intriguing time to get in on the future of aviation.

Before you buy stock in Joby Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!*

Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

*Stock Advisor returns as of August 14, 2026.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.