Josh Brown Explains Why He Remains Bullish on Joby Aviation (JOBY)- 'This Reminds Me of Tesla'

We recently published 10 Buzzing News to Watch as Investors Look for Best AI Stocks Amid Fed Rate Cuts. Joby Aviation Inc (NYSE:JOBY) is one of the best AI stocks amid Fed rate cuts.

Josh Brown, CEO of Ritholtz Wealth Management, in a recent program on CNBC commented on JOBY’s stock decline after the electric air-taxi maker priced a $514 million discounted share sale. Brown explained why he remains bullish on the stock and believes the capital raise was “great news.”

“The stock is actually higher than where they placed this offering at $16.85. This reminds me of Tesla. The bears used to say, “Oh, Elon’s running out of money. There’s going to be a secondary. They’re going to dilute you. They’re going to dilute you.” And then they would do a massive secondary and the stock would go up 20%. And the bears would be like, “Wait, I don’t understand what just happened.” What you have to understand with these companies that are pre-revenue in the developmental stage of their business is that the fact that they can do a secondary is the bullish part. Look how fast that stock was taken down. It’s $500 million worth of stock at a 9% discount to last night’s close. They snapped it up like it was an amuse-bouche. And that’s the bullish aspect. Look at the demand that’s there to be invested in the low altitude economy. So, I actually think it’s great news. This is not selling insiders. This is money that’s going to be used to build out the vertiports now that they’ve acquired the Blade business and to continue to build the S4 eVTOL, which is going to be what this business is all about. You need a lot of money in order to do that, and that’s where this capital raise is coming from.”

While we acknowledge the potential of JOBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.