Joby Aviation Makes Push Into Defense With $500 Million Acquisition. What It Means for JOBY Stock.

As sentiments around artificial intelligence continue to be strong, defense is quietly and steadily becoming a key focus area for the investing community. This is corroborated by the performance of the shares of the iShares US Aerospace & Defense ETF (ITA), the largest ETF in terms of AUM covering the defense sector. Up 17% this year, the ETF has outperformed the S&P 500's ($SPX) rise of about 13%.

Thus, when Joby Aviation (JOBY), known primarily as an air-taxi company, announced it would acquire Ohio-based defense technology company Resonant Sciences for $500 million, it further strengthened the attractiveness of defense as an investment opportunity.