Leo Sun, The Motley Fool
4 min read
Warren Buffett once said, “You’ve got to be prepared when you buy a stock to have it go down 50% or more and be comfortable with it, as long as you’re comfortable with the holding.” That’s especially true for volatile growth stocks in nascent but promising markets. If you expect a company’s total addressable market to expand significantly over the next few decades, it doesn’t make sense to hold the stock for only a few months.
Let’s take a look at three of those stocks that are still worth buying through near-term volatility and holding for the long term: Joby Aviation (NYSE: JOBY), AST SpaceMobile (NASDAQ: ASTS), and QuantumScape (NASDAQ: QS).
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Joby Aviation
Joby Aviation is an early mover in the electric vertical takeoff-and-landing (eVTOL) aircraft market. Its S4 eVTOL can carry a single pilot and four passengers, travel up to 150 miles on a single charge, and reach a maximum speed of 200 miles per hour. It has already completed test flights in the UAE, South Korea, and Japan, and plans to launch its first commercial flights in the U.S. once the Federal Aviation Administration (FAA) fully certifies them.
Toyota, Delta Air Lines, and Uber are three of Joby’s biggest backers and customers. Toyota will help Joby mass-produce its eVTOLs, Delta will use the S4 for airport-to-home flights, and Uber will integrate its flights into its own app. It’s also producing eVTOLs for the U.S. Department of Defense.
From 2025 to 2028, analysts expect Joby’s revenue to surge from $53 million to $458 million as it launches its commercial flights. It’s still unprofitable, and its stock isn’t cheap at 20 times its 2028 sales, but it could grow much larger as eVTOLs replace conventional helicopters.
AST SpaceMobile
AST SpaceMobile develops low Earth orbit (LEO) satellites for cellular connections. It helps telecom giants like AT&T and Verizon expand their wireless networks to rural areas that terrestrial towers can’t cover. It’s also developing satellites for the U.S. Missile Defense Agency’s “Golden Dome” project.
AST’s satellites are much larger than SpaceX‘s Starlink satellites. It’s only launched seven satellites so far, but it plans to expand its constellation to 45-60 satellites by the end of 2026, and to 248 satellites within the next few years. The Federal Communications Commission (FCC) authorized its ambitious long-term expansion plans in April.
