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Why Joby Aviation Stock Plummeted Today

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Motley Fool – Fri Jun 5, 9:23PM CDT

Joby Aviation (NYSE: JOBY) stock suffered a double-digit sell-off in Friday’s trading. The company’s share price fell 14.3% in the daily session. Meanwhile, the S&P 500 ended the day down 2.6%, and the Nasdaq Composite fell 4.2% in the session.

While there wasn’t any negative, business-specific news for Joby today, the electric vertical take-off and landing (eVTOL) aircraft specialist’s valuation still took a big hit in response to macroeconomic risks. The stock is now down roughly 27.5% across 2026’s trading.

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A chart line going down over hundred-dollar bills.

Image source: Getty Images.

May’s jobs numbers were a bearish catalyst for Joby

The Bureau of Labor Statistics (BLS) published its May jobs report this morning, and the numbers created bearish pressure for Joby Aviation stock. According to the latest BLS report, the U.S. economy added 172,000 nonfarm jobs last month — far above the average projection for additions of 80,000 jobs from surveyed economists. Stronger-than-expected jobs growth could be viewed as a positive in some respects, but investors are also betting that the latest BLS report suggests a bearish outlook for Joby.

Why is stronger-than-expect jobs growth bad for Joby stock?

Following today’s big pullback, Joby now has a market capitalization of roughly $9.3 billion and trades at approximately 84 times this year’s expected sales. The company has a highly growth-dependent valuation even after recent sell-offs.

May’s jobs report has investors worried that macroeconomic factors are coalescing to create a more bearish backdrop for growth stocks. If the Fed moves to cut interest rates this year, it could cause investors to become significantly more risk-averse — and Joby Aviation could face substantial valuation pressures if higher rates cause speculative plays fall out of favor.

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Keith Noonan 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.

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