Joby Aviation stock 14.3% plunge, jobs report impact
Joby Aviation stock fell 14.3% on Friday. 5Monthly nonfarm payrolls increased by 172,000people, and investors worried about the possibility of the Federal Reserve raising interest rates after strong employment data was released. The stock is down 27.5% year to date and trades at 84times expected revenue.
Joby Aviation stock fell 14.3% shortly after the close of the trading day. Selling intensified immediately after the decline. The company issued no additional announcement.
5Monthly nonfarm payrolls increased by 172,000people. The employment data was considered stronger than expected. Market participants immediately reacted to the figure.
Investors worried that strong employment data increased the possibility of the Federal Reserve raising interest rates. Changes in interest-rate expectations alter the investment appeal of growth stocks and speculative securities. Joby is one of the stocks investors view as belonging to this category.
Joby’s stock has fallen since the beginning of the year by 27.5%. The company is currently valued by the market at around 84times its expected revenue. Its high valuation has increased investors’ sensitivity.
This decline was associated with a broad change in interest-rate sensitivity rather than an issue specific to an individual stock. Trading volume increased compared with usual levels. There have been no additional disclosures yet.
Market participants are closely watching upcoming employment data and announcements related to the Federal Reserve. The company’s quarterly earnings release schedule remains pending. Price volatility may continue for the time being.
Sources: The Motley Fool
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