Key Points

• Joby Aviation's business model differs significantly from that of its peers.

• There's reason to believe its vertically integrated strategy will win out.

• The upside potential is significant; provided the certification process goes smoothly, Joby has a big future.

• 10 stocks we like better than Joby Aviation ›

The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different business models with varying risks and rewards, and Joby Aviation (NYSE: JOBY) is arguably the one with the most reward and also one that's reducing its risk the most in 2025. Is it enough to make it a stock that could set investors up for life? Here's the lowdown.

What makes Joby Aviation different

It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (NYSE: ACHR) makes for a fascinating comparison. The first conclusion is that they have significantly different models. The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real progress in de-risking the elements of its business that are subject to greater market uncertainty.

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In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines. Its business model is different from Archer's and the rest of the industry in two key ways:

• Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its technology in-house, having its own powertrain and electronics manufacturing facility in California.
• As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will deliver transportation services to customers."

Both points are crucial to understanding the investment case.

Joby's in-house development

Archer, along with other eVTOL companies such as Germany's Lilium and the U.K.'s Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in providing solutions. The advantage of heavy integration with established partners in developing technology is a simplified and less risky process, which, theoretically, leads to earlier certification.

For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor). Honeywell is a key strategic technology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo.

Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and propulsion unit sensors.

As such, Joby's more "go it alone" approach could be deemed more risky. However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota. Moreover, the Japanese giant is assisting in improving Joby's manufacturing processes and optimizing design.

A vertically integrated transportation company

Here again, Joby is different. It doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself. Again, this is a more risky business model, as it implies commercial business expertise in addition to research & development and manufacturing expertise. It's somewhat akin to Boeing or Airbus deciding to operate an airline.

On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services. Similarly, Delta Air Lines is investing up to $200 million in Joby to transport passengers to airports. With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus.

Can Joby Aviation be a life-changing investment?

Given the current trends in the global economy, whereby technology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's business model makes perfect sense and has the potential to create more value for shareholders over the long term.

Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota Production System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others.

There are no guarantees in nascent technology fields such as eVTOL, and diversification is key when investing in growth stocks. Still, Joby Aviation is a strong candidate for an investment that could set you up for life.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines, GE Aerospace, Hexcel, and Stellantis. The Motley Fool has a disclosure policy.

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Google DeepMind's Gemini AI won a gold medal at the International Mathematical Olympiad by solving complex math problems using natural language, marking a breakthrough in AI reasoning and human-level performance.Read More

Your college years are typically thought of as some of the best of your life, but they can be hard to enjoy to the fullest if you're worried about paying for the essentials like food, textbooks, supplies and, if you're lucky, the occasional evening out with friends. With everything going up in price, it may seem like good discounts are few and far between, but that's not the case. Students still have excellent discounts to take advantage of across the board, be it on streaming services, shopping subscriptions, digital tools and more. We’ve collected the best student discounts we could find on useful services, along with some things you’ll enjoy in your down time. Just keep in mind that most of these offers require you to prove your status as a student either by signing up with your .edu email address or providing a valid student ID.

Shopping

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News

Engadget

You shouldn’t rely on social media to be your sole source of news. With foreign wars, new viruses, Supreme Court decisions and upcoming elections making headlines daily, it’s important to get your news from reliable sources. Yes, it’s daunting to get into the news on a regular basis, but it’s crucial to know what’s going on in the country and the world as a whole. Here are some reputable news organizations that offer student discounts on their monthly or annual subscription plans.

The Atlantic: Starts at $50 per year for digital-only access.

The New York Times: $1 per week for one year for the base subscription.

The Washington Post: $1 every four weeks for digital-only access.

The Wall Street Journal: Starting at $2 per week for one year for digital access.

This article originally appeared on Engadget at https://www.engadget.com/best-student-discounts-140038070.html?src=rss

©

© filo via Getty Images

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How AI-driven personalization, knowledge graphs and a two-sided marketplace are creating a new business model for the 75-year-old retailer.Read More

Warren Buffett has made some critical comments on the airline industry over the last few decades, and frankly, he has a point. But are his criticisms still valid, or have carriers like Delta Air Lines (NYSE: DAL) and United Airlines (NASDAQ: UAL) altered the way investors should view the industry?

Buffett's views on the airline industry

The airline industry has historically struggled to generate the returns to cover its cost of capital. This is a point recognized by the International Air Transport Association and by Buffett himself. The legendary investor has argued that airlines' high fixed costs and the low marginal cost of adding extra seating and capacity lead to a tendency to ramp up capacity while also selling tickets at a low price.

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It's essential to note that when Buffett and others speak disparagingly about the airline industry and the returns it has generated for investors, they are typically referring to equity investors in airlines.

In contrast, bond investors have tended to do well, and airlines appear to have little difficulty attracting capital to the industry, not least because bonds are commonly securitized against valuable assets, namely the planes. It's also been an excellent industry for suppliers of airline equipment.

In Berkshire Hathaway's annual letter in 2007, Buffett wrote: "The airline industry's demand for capital ever since that first flight has been insatiable. Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it."

In 1990, he called out the self-destructive pricing tactics of certain carriers. And in 1992's letter, he talked about airlines acting like members of a competitive tontine -- an arrangement whereby the participants contribute equally to a prize that goes to the lone survivor -- that they wish to conclude "as rapidly as possible."

The general theme of a capital-intensive industry, with relatively small and ever-at-risk profit margins, containing participants who don't always act rationally, would go a long way to explaining why airlines have struggled to cover their cost of capital.

The airline industry has changed

That said, there's a strong case for arguing that the airline industry is different now. As mentioned previously, Delta and United Airlines are both consistently generating a return on invested capital (ROIC) that exceeds their weighted average cost of capital (WACC), a key requirement for generating value for shareholders.

They are doing so because of a combination of their business models, a change of behavior, and certain structural factors within the industry that are creating a favorable long-term environment for network carriers like Delta and United.

As for their business models, both continue to grow premium travel revenue, and it's proving more resilient in a slowdown. For example, the tariff-induced slowdown this year hasn't led to any deterioration in high-end consumers' willingness to purchase a premium experience, according to United's chief commercial officer, Andrew Nocella, on the last earnings call.

It was a similar story from Delta's president, Glen Hauenstein, who said, "We have not seen any cracks yet in the Premium."

And their loyalty programs -- Delta's SkyMiles and United's MileagePlus -- not only foster loyalty and customer recognition, leading to repeat bookings, but they also generate a wealth of valuable data on consumer behavior and produce lucrative revenue through the sale of miles.

Behavior and structural advantages

As Buffett's quotes above suggest, the industry hasn't always acted rationally, but there is recent evidence that it has begun to do so. For example, when overcapacity manifested itself in the spring of last year, airline stocks sold off heavily, only to recover strongly after carriers reduced unnecessary capacity.

DAL data by YCharts.

Fast forward to today, and both Delta and United have announced cutbacks on capacity expansion plans in light of slowing bookings -- a sign of rational behavior.

Lastly, on the structural advantages, a combination of rising airport costs (partly due to the need for infrastructure investment), labor costs, supply chain costs, and parts shortages is putting significant pressure on the margins of low-cost carriers. That's creating an opportunity for network carriers to offer economy tickets to fill capacity.

Are they stocks to buy?

The airline industry has undergone significant changes, and while Buffett's words should always be heeded, the reality is that Delta and United are generating good and sustainable ROIC by diversifying their revenue streams to ensure long-term, sustainable growth. Both stocks are attractive for long-term investors.

Should you invest $1,000 in Delta Air Lines right now?

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Sometimes the best investment opportunities come wrapped in government buzzwords and unrealistic timelines.

Last Friday, the White House issued an executive order called "Unleashing American Drone Dominance." Yes, that's the actual title. And while it's long on ambition and short on specifics, buried in the bureaucratic language is something that matters for growth investors: a clear signal that the administration wants to fast-track electric vertical takeoff and landing (eVTOL) aircraft.

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The executive order creates an eVTOL pilot program requiring the FAA to select at least five companies for real-world operations, with aggressive timelines that suggest political pressure to move faster than typical aviation bureaucracy allows.

While the details remain vague and the timelines optimistic, the direction is clear: America wants to lead in urban air mobility. This political tailwind arrives just as the technology reaches commercial viability, creating a rare convergence of innovation, regulation, and market demand.

Now, before you roll your eyes at another government initiative, consider this: Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) don't need this executive order to succeed. Both companies are working through FAA certification (though timelines for experimental aircraft are notoriously opaque), have secured major airline partnerships, and claim to be targeting commercial launches shortly.

What both companies are getting is something potentially more valuable -- political cover to move faster through the regulatory maze. Both stocks have already had massive runs over the past 12 months (Archer up 203%, Joby up 63%), but if you think flying taxis are still science fiction, you haven't been paying attention. Here's why these two pioneers look like buys even after their recent runs.

Archer Aviation: The execution story

Archer Aviation operates with remarkable efficiency for a pre-revenue company, achieving milestones that arguably justify its $5.6 billion market cap. The company's Midnight aircraft, designed to carry four passengers plus a pilot on trips up to 100 miles, recently completed piloted flights -- a critical step that positions Archer, alongside Joby, as one of America's leading eVTOL companies.

With partnerships spanning United Airlines for domestic routes and Stellantis for manufacturing expertise, Archer has assembled the pieces for rapid commercialization once certification arrives. Its Launch Edition program, securing commitments from Abu Dhabi Aviation and Ethiopian Airlines valued at up to $30 million each, provides early revenue visibility and validates international demand.

The investment case is compelling. Archer's $6 billion order backlog now exceeds its entire $5.6 billion market cap, while its hefty 11.7% short interest (as of mid-May) sets up a potential short squeeze. Though Friday's executive order lacks implementation details, it sends an unmistakable signal -- the U.S. government views eVTOL dominance as a national priority. For a company already executing ahead of most of its peers in many ways, that political validation could be the spark that sends shares soaring in the months ahead.

Joby Aviation: The deep-pocketed pioneer

Joby Aviation brings unmatched financial firepower to the eVTOL race, with $813 million in cash plus Toyota's recent $250 million investment (part of a $500 million commitment) providing runway through commercialization. The company's Q1 2025 achievements read like a pre-launch checklist: routine pilot-on-board transition flights, Virgin Atlantic partnership for U.K. market entry, fifth production aircraft powered on, and expanded Marina manufacturing facility set for June handover.

Joby benefits from Toyota's manufacturing expertise embedded directly in operations, potentially solving the hardest challenge facing aerospace start-ups -- scaling from prototypes to volume production. The company claims to be 62% complete on its side of Stage 4 FAA certification (43% on FAA's side), though investors should view these self-reported metrics skeptically given the opaque nature of experimental aircraft approval. That's not a knock against either company, but the reality of developing a new form of aviation.

With strategic partnerships including Delta Air Lines, Virgin Atlantic, and a $131 million Department of Defense contract, Joby has diversified its path to revenue across commercial, international, and military applications. And like Archer, Joby also sports a fairly high short interest, with 7.6% of outstanding shares sold short in May. As such, this eVTOL pioneer could also benefit form a short squeeze on positive news or a marketwide melt-up.

Why these two eVTOL pioneers are a buy this week

Friday's executive order accelerated the eVTOL timeline, and the market hasn't caught on. While Archer executes lean and Joby brings Toyota's backing, both companies now face compressed regulatory timelines that could pull commercial operations forward by years.

This week's setup is compelling: Heavy short interest creates squeeze potential, operational milestones keep hitting, and a fresh political catalyst has just emerged. So, for growth investors comfortable with volatility, this could be a stellar entry point.

Should you invest $1,000 in Archer Aviation right now?

Before you buy stock in Archer 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 Archer 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

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George Budwell has positions in Archer Aviation, Joby Aviation, and Toyota Motor. The Motley Fool recommends Delta Air Lines and Stellantis. The Motley Fool has a disclosure policy.

The U.S. government has announced plans to spend "tens of billions" to upgrade the air traffic control system, advancements that will hopefully help alleviate concerns about flying following a series of high-profile incidents.

The airlines are trading higher on the news, with Delta Air Lines (NYSE: DAL) and United Airlines Holdings (NASDAQ: UAL) each up 7% as of 1:30 p.m. ET and American Airlines Group (NASDAQ: AAL) up 5%.

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Bringing order to in-air chaos

The nation's air traffic control system is in desperate need of an upgrade, and incidents this year including a fatal mid-air collision over the Potomac River in Washington, D.C. and a recent outage at Newark Liberty International Airport have some questioning whether it is safe to fly.

United Airlines has been forced to slash its busy summer schedule due to disruptions at Newark.

On Thursday, Transportation Secretary Sean Duffy outlined his proposal to fix the system during a Congressional appearance that also included several airline CEOs. The administration is urging Congress to approve billions in funding to replace aging radar and other equipment and overhaul the tech infrastructure.

Speaking elsewhere on Thursday, President Donald Trump said the government is "now in the market to buy a gorgeous brand new system" to handle air traffic control.

Though the changes cannot be implemented overnight, a change in the narrative away from focusing on the issues and toward fixing them could help boost demand for air travel.

Is now the time to buy airline stocks?

Unfortunately for the industry, airline investors have a lot more to worry about than just air traffic control modernization. This is a highly cyclical industry that is tied closely to the health of the consumer. When times are tough, households and businesses are more likely to cut back on travel than on paying for basic essentials.

On earnings calls this quarter, execs largely said that demand is holding up for now but could come under pressure if tariffs and inflation sustain into the summer. With that in mind, the stocks are also likely moving on progress on the trade war front.

Those considering buying in now should pay close attention to demand trends in the weeks and months to come. For investors willing to accept the potential for turbulence, Delta and United have industry-leading balance sheets and the scale necessary to take advantage of an uptick in interest in flying from here.

Should you invest $1,000 in United Airlines right now?

Before you buy stock in United Airlines, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Airlines are among the most discretionary sectors out there, tied closely to the health of the consumer. So, perhaps it is no surprise that the stocks are seeing an oversize reaction to reports suggesting key parties are moving to de-escalate the trade war gripping the U.S. economy.

Shares of JetBlue Airways (NASDAQ: JBLU) traded up 10% as of 10 a.m. ET, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all up more than 5%.

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Clear skies up ahead?

We are only halfway through airline earnings season, but the message from the companies that have reported is clear: The industry is not seeing a dramatic fall-off from near-record demand, but executives are anticipating declines in demand should tariffs eat into the economy and cut consumer purchasing power.

Historically, airlines have been a bad sector to invest in during a recession. Households struggling to pay bills and afford groceries are unlikely to book vacations.

On Wednesday, investors were buying in hopes a worst-case scenario could be avoided. The market is up big on reports that the White House is mulling cuts to steep tariffs on Chinese imports, a move that could lessen the blow on consumers and lower the odds the U.S. falls into a recession in the second half of 2025.

Is now the time to buy airline stocks?

Investors should proceed with caution from here. The market has been volatile of late, trading up and down based on the latest tariff headlines. It is dangerous to try to get ahead of rumors, and until there are actual moves to de-escalate, it is possible these gains could evaporate just as quickly as they materialized.

For those willing to accept the turbulence and look past whatever near-term noise might be on the horizon, Delta and United are the safest investment choices from this group. JetBlue and American have relatively high debt burdens and questions about their revenue models, and Southwest is in the process of eliminating consumer-friendly policies and could see a backlash in the quarters to come.

United execs sounded an optimistic tone about the quarters to come even with the headwinds the airline is currently facing. If those headwinds recede, the airline looks best-positioned to gain altitude from here.

Should you invest $1,000 in United Airlines right now?

Before you buy stock in United Airlines, 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 United Airlines 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.

Delta Air Lines (NYSE:DAL) reported first-quarter 2025 earnings on Wednesday, April 9, that matched or exceeded analysts' consensus expectations. Adjusted earnings per share of $0.46 came in ahead of estimates for $0.38 but came in below management's Jan. 10 guidance of $0.70 to $1.00. Adjusted operating revenue totaled $12.98 billion, meeting forecasts but falling short of Delta's planned revenue growth rate of 7% to 9%, achieving only 3.3%.

Overall, the quarter demonstrated solid performance amid challenging conditions but indicated opportunities for further improvement.

Metric	Q1 2025	Analysts' Estimate	Q1 2024	Change (YOY)
Adjusted EPS	$0.46	$0.38	$0.45	2.2%
Adjusted revenue	$12.98 billion	$12.98 billion	$12.56 billion	3.3%
Operating margin	4.6%	N/A	5.1%	(0.5 pps)
Free cash flow	$1.28 billion	N/A	$1.38 billion	(7%)

Source: Delta Air Lines. Note: Analyst consensus estimates for the quarter provided by FactSet. YOY = Year over year.

Overview of Delta Air Lines

Delta Air Lines is one of the largest airlines in the U.S., known for its comprehensive network of destinations and its commitment to operational reliability. The airline maintains strong connections across over 120 countries, supported by strategic alliances with major global carriers. Key competitive advantages include its premium cabins and a digital SkyMiles loyalty program, contributing significantly to revenue despite market fluctuations.

Delta is focused on sustaining its operational excellence, improving its fleet efficiency, and expanding its revenue streams. With rising fuel prices and competitive pressures, financial discipline and strategic capacity management are crucial for its future success.

Quarterly Highlights

Delta Air Lines' adjusted EPS of $0.46 in Q1 came in well below the $0.70 to $1.00 range anticipated by management. This discrepancy reflects lower-than-expected growth driven by domestic travel softness. Adjusted operating revenue growth of 3.3% also missed management guidance of 7% to 9% growth, indicating challenges. Key segments like international travel showed resilience with Pacific revenues increasing by 16%.

Operating margin was impacted, standing at 4.6%, below the 6% to 8% guidance. This signals cost pressures and softer domestic demand, affecting revenue per seat mile, an important industry metric that assesses efficiency in generating passenger revenue. Total revenue per available seat mile of 20.53 cents fell 2% year over year.

On the strategic front, Delta continued its efforts in cost management, improving its non-fuel cost growth by 2.6%. Debt reduction remained a priority, with adjusted net debt down by $1.1 billion from the previous quarter, reflecting ongoing financial resilience.

Looking Forward

Delta revised its capacity plans, suggesting a cautious approach amid economic uncertainty. This defensive measure underscores anticipated continued headwinds in demand, requiring strategic evaluation of growth opportunities versus conservative expansion. Importantly, the company has not reaffirmed its full-year earnings guidance set earlier this year, instead providing a narrower focus on quarterly targets with an EPS projection of $1.70 to $2.30 for the June quarter. This cautionary focus arises from shifting demand patterns and uncertain macroeconomic conditions, affecting profitability.

Investors should watch Delta's strategic revenue diversification and cost management efforts amidst ongoing uncertainties. Continued attention to its SkyMiles program and premium product offerings is expected. Additionally, shifts in capacity plans reflect management's strategic adaptability, positioning the airline for sustained performance when economic conditions stabilize.

Where to invest $1,000 right now

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.