NEW YORK, July 21, 2026, 14:13 (EDT) — Shares of Joby Aviation (NYSE:JOBY) and Archer Aviation (NYSE:ACHR) climbed sharply on Monday, as a shift in defense demand reshaped valuations in the electric vertical takeoff and landing (eVTOL) sector. Joby rose 3.2% to $7.71, extending its two-day gain to 6.6%, while Archer soared 20.3% from Friday's close, adding roughly $690 million in market capitalization since last week.
The rally comes amid a broader defense-focused trading session at the Farnborough International Airshow, where military exhibitors made up half of the record 1,600 participants. The event highlighted growing interest in hybrid-electric and autonomous aircraft for defense applications, benefiting both Joby and Archer.
Valuation Gap Narrows
An initial cash-adjusted assessment shows Joby valued at 2.1 times Archer, down from 2.7 times on Friday. Joby's market cap stands at $7.28 billion, with $2.47 billion in cash and short-term investments, yielding a cash-adjusted value of $4.81 billion. Archer's market cap is $4.11 billion, with $1.78 billion in cash, for a cash-adjusted value of $2.33 billion. The contraction in the multiple reflects Archer's stronger relative performance following its defense announcement.
Archer's Thunder Unveiled
Archer, alongside privately held Anduril Industries, introduced Thunder on Monday, a hybrid-electric autonomous attack rotorcraft. CEO Adam Goldstein explained, “We couldn’t simply tweak our existing aircraft.” Full-scale surrogate aircraft have already completed flights, with Thunder scheduled for first flight in 2027. The announcement triggered a surge in Archer's stock, with trading volume hitting 52.4 million shares by early afternoon.
Joby's Defense Demonstrator
Joby conducted a flight of its hybrid defense demonstrator on November 7, 2025, and has partnered with L3Harris Technologies (NYSE:LHX) for defense mission systems. The company announced government mission demonstrations are scheduled for 2026, leveraging its Superpilot autonomous flight technology. Joby's stock rose for a second consecutive day, advancing 6.6% over the two sessions.
Financial Context
Joby reported $2.47 billion in cash and short-term investments as of March 31, with operating cash outflows of $144.4 million in the quarter. Capital expenditures totaled $77.9 million, while revenue reached $24.2 million, primarily from Blade passenger services. The company has raised substantial capital, securing $576.3 million net through equity and $669.8 million via convertible notes. Archer raised $661 million in its Thunder rally, though order values have not been disclosed.
Risks and Outlook
Joby remains dependent on obtaining FAA type certification to commence commercial passenger flights, and its stock could face pressure from potential delays, increased costs, or dilution. Archer's Thunder schedule and partnership outlook remain projections. Both companies face risks typical of early-stage aerospace ventures. The next key benchmark for the sector will be contract values from defense customers, which could further differentiate the two firms. Joby continues to hold a higher valuation, but the gap has narrowed significantly as defense demand shifts investor focus.
