Why Joby Aviation Stock Plummeted 19.8% in July But Is Soaring in August

Joby stock got hit with a double-digit decline in July despite little news.

Many growth-dependent stocks saw significant pullbacks in the month, and Joby didn't have major positive news to counter the valuation trend.

The stock has seen big gains in August thanks to bullish momentum for the broader market and a promising quarterly report.

Joby Aviation (NYSE: JOBY) stock saw a double-digit valuation pullback in July. The company's share price declined 19.8% in the month, according to data from S&P Global Market Intelligence . The S&P 500 's level wound up being roughly flat in the month, and the more growth-focused Nasdaq Composite posted a 3.2% decline over the stretch.

Joby is an early leader in the electric vertical take-off and landing ( eVTOL ) aircraft space , but the outlook in the overall category is still highly speculative -- and the stock can see big valuation swings in conjunction with shifts in the market's appetite for growth stocks. Even with a significant post-earnings pop in August, the stock is still down roughly 34% year to date.

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Last month played host to a major repositioning across the market. While investors broadly sold out of artificial intelligence hardware plays, top players in the software space and some other industries saw strong bullish momentum that resulted in trading for the S&P 500 winding up roughly flat.

Despite little overall movement for the benchmark index in the month, some highly growth-dependent growth stocks saw big sell-offs in July as investors shifted into different industries and weighed the potential impacts of the reescalation of the U.S.'s war with Iran. The conflict and the resulting closure of the Strait of Hormuz have caused substantial increases in oil prices, and the dynamic has created inflationary pressures and uncertainty that have produced seesawing outlooks on interest rates and valuation volatility for stocks .