Why Joby Aviation's Move Into Defense Is a Bullish Sign for Investors
Joby is acquiring Resonant Sciences in a $500 million deal.
Overview
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.
Details
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.
Source
Originally published at www.fool.com.