Latest news with #ACHR
Yahoo
5 days ago
- Business
- Yahoo
Where Will Archer Aviation Be in 3 Years?
Archer Aviation is a leader in the emerging flying taxi industry, developing electric vertical takeoff and landing vehicles (eVTOLs). The company has completed its manufacturing facility in Georgia and is working on deploying early fleets of its aircraft in the UAE. Archer aims to expand its operations to major U.S. cities, leveraging existing helicopter infrastructure to facilitate quick travel to airports. 10 stocks we like better than Archer Aviation › Flying taxis are poised to revolutionize urban travel, and Archer Aviation (NYSE: ACHR) is at the forefront. Archer develops cutting-edge electric vertical takeoff and landing vehicles (eVTOLs), or flying taxis, and plans to launch its service in the United Arab Emirates as early as this year. Archer is working toward certification in the U.S. and ramping up its manufacturing capabilities. It's also forming partnerships with cities and airlines to ensure that its flying taxi service takes flight. The technology is still in its early stages, and the next few years are crucial for its success. Here's what the next three years could have in store for Archer Aviation. Archer Aviation is making good headway with its air taxi business. Last year, the company finished construction on its 400,000-square-foot manufacturing facility in Covington, Georgia, where it plans to build 10 of its Midnight aircraft this year. With the help of Abu Dhabi Aviation, Archer plans to launch its air taxi service later this year in the United Arab Emirates. It also plans to deploy small fleets of its Midnight aircraft to early adopters, like the UAE, over the next 18 to 24 months. Archer has secured design approval for its first hybrid heliport in the UAE. The General Civil Aviation Agency has approved the design to help transform the Abu Dhabi Cruise Terminal helipad into a hybrid heliport for helicopters and eVTOL aircraft. Once complete, this will be the first hybrid heliport available for early commercial and air taxi operations in Abu Dhabi. Archer hopes that operations in the UAE are just the beginning. The company has its sights set on the U.S. market over the next few years. For example, the company wants to begin operations in New York City and released its vision for the air taxi service in April. In a partnership with United Airlines, Archer plans to enable passengers to travel from Manhattan to nearby airports in just five to 15 minutes using its Midnight aircraft. "With its existing helicopter infrastructure, regulatory support and strong demand, New York could be one of the first markets for air taxis in the United States," Archer CEO Adam Goldstein said. The company also aims to establish an air mobility network in Los Angeles with a similar goal: connecting customers to airports, thereby significantly reducing travel time. Archer's network would include vertiports at key locations such as Los Angeles International Airport (LAX), Orange County, Santa Monica, Hollywood Burbank, Long Beach, and Van Nuys. Its goal is to begin operations in New York and Los Angeles, potentially as early as next year. Additionally, it has been selected as the official air taxi of the 2028 Los Angeles Summer Olympic and Paralympic Games. However, before commercial operations in the United States begin, the company must get its Type Certification from the Federal Aviation Administration. In February, the FAA awarded Archer its Part 141 certificate, formally recognizing it as a regulated institution for pilot training. This is the third of four certificates the company has been waiting for from the FAA to launch operations. It is awaiting type certification for its Midnight aircraft, which will be the final certification before it can begin commercial operations in the U.S. It expects to get this certification sometime this year. While it's still early on to make solid projections, analysts covering Archer Aviation project revenue and earnings per share to look like this over the next few years: Metric 2025 2026 2027 2028 Revenue (in millions) $17 $144 $437 $1,100 Earnings per share ($0.93) ($0.89) ($0.84) ($0.43) In March, J.P. Morgan analyst Bill Peterson warned investors that commercialization is proving to take longer and be less lucrative than imagined. Peterson said he believed that 2025 was likely off the table, as the rollout in the UAE is proving to be different from what was expected. However, Archer Aviation management told investors during its May earnings call that it remains on track to launch in the UAE later this year with plans to deliver a piloted Midnight aircraft to the region this summer. That said, if its launch is pushed back in the UAE or other key areas, it would impact the timing of its revenue. For this reason, investors should closely monitor Archer's cash burn rate, particularly since it is still not generating any meaningful revenue. The good news is that Archer increased its cash balances by $196 million in the first quarter and has over $1 billion in liquidity. Archer Aviation is a rising company in an emerging industry that is still in its early stages of development. There remains debate around how much the urban air mobility market may be worth. Not only that, but investors also face risks related to the timing of certifications, production, and the rollout of commercial operations. The company is well capitalized today, so its cash runway isn't an immediate concern. However, a delayed timeline could extend its cash burn, which could weigh on the stock if it needs to continue raising capital. Investing in Archer Aviation may not be suitable for all investors. It's pre-revenue, and its growth story is still in the early innings. If you buy the stock, treat your investment in Archer as a speculative growth play and only risk a portion of your portfolio that you are comfortable with on this high-risk and potentially high-reward stock. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in JPMorgan Chase. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. Where Will Archer Aviation Be in 3 Years? was originally published by The Motley Fool
Yahoo
28-05-2025
- Business
- Yahoo
Archer vs. Joby: Which eVTOL Stock Aces in Urban Air Mobility?
Demand for new-age air transport vehicles, such as electric vertical takeoff and landing (eVTOL) aircraft, has increased manifold in recent years, driven by escalating urban congestion and the advent of transformative transportation technologies. This rising interest in urban air mobility is fueling investor optimism in companies like Archer Aviation ACHR and Joby Aviation JOBY, both of which are positioning themselves at the forefront of the eVTOL revolution. Archer Aviation is pursuing a ride-sharing model to offer short-haul ride-sharing flights between city centers and nearby airports or suburbs, in partnership with major players like United Airlines. Meanwhile, Joby Aviation is vertically integrated, focusing on designing and operating its own air taxi service, with backing from companies like Toyota and Delta. With regulatory approvals advancing and infrastructure investment accelerating in the commercialization of urban air mobility, the eVTOL sector is poised for growth, raising an inherent question for an investor: Which eVTOL stock is a better player to focus on? To get the answer, let's dive deep. ACHR ended first-quarter 2025 with cash and cash equivalents of $1.04 billion. Its long-term debt totaled $74 million while its current debt was nil. This reflects a solid solvency position for the company and should provide it with the necessary resources to execute its civil and defense business strategies and invest in innovative technologies. Archer Aviation's growth is underpinned by strong government and commercial collaborations. On May 19, 2025, it was announced that ACHR has joined forces with Anduril Industries to test dual-use eVTOL cargo aircraft in the UK market. Earlier this month, Archer Aviation revealed that it has been selected as the Official Air Taxi Provider of the LA28 Olympic and Paralympic Games and Team USA. Through this exclusive partnership, Archer's Midnight eVTOL aircraft will be used across the LA28 Games in a variety of ways, such as transporting VIPs, fans, and stakeholders, while electrifying vertiport take-off-and-landing hubs for key venues and providing support for emergency services and security. Regarding ACHR's progress in its Midnight eVTOL product line, it is imperative to mention that the company started production of aircraft at its high-volume aircraft manufacturing facility, ARC, located in Covington, GA, in the first quarter of 2025. This will support Archer Aviation to steadily ramp up its production there to achieve the timely commercial launch of Midnight jet by late 2025. Joby Aviation also maintains a strong cash position, with $0.81 billion on hand as of March 31, 2025. As of the same date, both its long and short-term debts were nil. This should provide JOBY with the financial flexibility it needs for designing and manufacturing aircraft, as well as developing production lines for jet components. Joby Aviation's growth prospects are bolstered by its strategic partnerships and advanced certification timeline. Notably, in May 2025, the company announced its first-quarter 2025 results, which reflected that it has made record progress on the certification of its aircraft for a second quarter in a row. JOBY also formed a partnership, in the January-March quarter, with Virgin Atlantic to launch air taxi services in the UK, starting with their hubs at London Heathrow and Manchester. Looking ahead, JOBY plans to deliver its eVTOL aircraft to Dubai by mid-2025 and launch commercial passenger operations by late 2025 or early 2026. To support this, the company is expanding its manufacturing facility, which is expected to be completed by June 2025. This should help JOBY deliver more aircraft in the coming years. Both Archer Aviation and Joby are navigating a capital-intensive runway. However, whether the business model for both these stocks will be sustainable in the long run remains uncertain. This is because of the nascent stage of the eVTOL aircraft market itself. So, ACHR and JOBY's success depends not only on their ability to design, develop and certify eVTOL aircraft but also on how the demand for these vehicles evolves. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY and ACHR's growth potential may be constrained. Moreover, since both these stocks are in their pre-revenue stage (although JOBY has generated an insignificant amount of revenues in recent times), investors might remain concerned about their long-term growth viability. The Zacks Consensus Estimate for Archer Aviation's 2025 loss per share implies a year-over-year improvement, while the same for 2026 suggests a deterioration. The stock's near-term bottom-line estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Joby Aviation's 2025 and 2026 loss per share suggests year-over-year growth. Its revenue estimates also show solid improvement. The stock's near-term bottom-line estimates have also been trending northward over the past 60 days. Image Source: Zacks Investment Research ACHR (up 19.2%) has outperformed JOBY (down 5.3%) over the past three months and has done the same in the past year. Shares of ACHR and JOBY have surged 230.9% and 36.4%, respectively. Image Source: Zacks Investment Research The image below, reflecting a negative Return on Equity (ROE) for ACHR and JOBY, suggests that neither of these eVTOL stocks is efficiently generating profits from its equity base. Image Source: Zacks Investment Research While both Archer Aviation and Joby Aviation are making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Archer's strategic airline partnerships and faster production ramp-up give it an edge in commercialization, whereas Joby's vertically integrated model and certification milestones offer strong long-term potential. Financially, both maintain solid cash positions with no current debt, yet remain in pre-revenue stages, making their profitability uncertain. Investors thus focusing on ACHR and JOBY may consider staying on the sidelines until clearer signs of regulatory progress, revenue generation, and market adoption emerge in this high-potential but early-stage eVTOL market. Yet, considering ACHR's outperformance at the bourse, one may prefer it over JOBY. Both ACHR and JOBY carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Joby Aviation, Inc. (JOBY) : Free Stock Analysis Report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Archer Aviation Inc. (ACHR)?
We recently published a list of In this article, we are going to take a look at where Archer Aviation Inc. (NYSE:ACHR) stands against other stocks that Jim Cramer discusses. In that older episode, a caller asked about Archer Aviation Inc. (NYSE:ACHR) and Joby Aviation Inc. (NYSE:JOBY), wondering whether to hold Archer or switch to Joby. Cramer dismissed both, urging the caller to focus on more established companies: 'What? No. Go buy Walmart or something. Go buy a real company. I mean, we've got to step up our game here. […] We're not going to be in the Archer and the Joby — we're going to be in the Walmarts, the real good ones.' Cramer missed big here since Archer has skyrocketed 219.92% after he dismissed it. Archer Aviation Inc. (NYSE:ACHR) is developing eVTOL aircraft aimed at reshaping short-haul transportation through urban air mobility solutions. A technician assembling an electric aircraft, highlighting the company's manufacturing capabilities. Cramer now thinks Archer went a 'little bit too far' with its recent surge and prefers another stock. Here's what he said when asked about it on the 16th of May: 'Oh, that one's a bridge too far for me to tell you the truth. Electric vertical takeoff, I mean, I'm willing to go with Rocket Lab, but Archer's just a little bit too far. I mean, someone who's like 18, 19, 20, 21, you might want to believe in it. I don't want to have too many of these kinds of stocks on my so-called recommended list.' Overall, ACHR ranks 8th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ACHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACHR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
27-05-2025
- Business
- Business Insider
‘Buy as Archer Nears Liftoff,' Says Investor About ACHR Stock
There's plenty of electrifying news in the air for Archer Aviation (NYSE:ACHR) stock, which has been making headlines quite a bit in recent weeks. The latest buzz came in mid-May, when the eVTOL company was named the official 'air taxi' for the 2028 LA Summer Olympics. Confident Investing Starts Here: That milestone adds to a growing list of achievements. Strategic partnerships with United Airlines, Ethiopian Airlines, and Abu Dhabi Airports reflect meaningful progress toward commercial deployment and global market expansion. Still, Archer's path to liftoff is not entirely clear. The company must first clear a key regulatory hurdle: securing FAA Type Certification for its Midnight aircraft, an essential requirement before it can begin commercial operations in the U.S. Even so, some investors see potential in getting ahead of the curve. One such voice, known by the pseudonym First Principles Partners, argues that this could be just the time to climb onboard. 'The type certification is in the final stages of commercialization, which is an ideal position to speculate a strong upside trend,' explains the 5-star investor. Archer has already completed 402 test flights and mapped out its commercial strategy for Abu Dhabi. With no major design changes expected from the FAA, the path to approval, according to First Principles, may be clearer than it seems. Moreover, as the path to commercialization becomes clear, there should be plenty of demand for Archer's services. The investor estimates that more than 2,000 commercial eVTOLs will come online by 2030, representing a global CAGR of 54.9% during the coming years. 'I conclude that Archer is a bullish investment to watch, given its capability to enter the eVTOL market early,' sums up First Principles, who rates ACHR shares a Buy. (To watch First Principles' track record, click here) Wall Street seems to share the optimism. With 6 Buys and just 1 Hold, ACHR earns a Strong Buy consensus rating. The average 12-month price target stands at $12.29, suggesting a 16% upside potential for the year ahead. (See ACHR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
22-05-2025
- Business
- Yahoo
Culper Research Shorts Archer Aviation (ACHR) Stock- Here's Why
As per the report from Culper Research dated May 20, Archer Aviation Inc. (NYSE:ACHR) has been facing allegations of misleading investors regarding the progress of its eVTOL aircraft, Midnight. The research firm had gone ahead with its short position on the company's stock, mentioning that it had consistently given inaccurate updates regarding its aircraft's development and testing milestones over the previous year. As per the research firm, Archer Aviation Inc. (NYSE:ACHR)'s continued promotion of near-term commercialization is premature and also reckless. A technician assembling an electric aircraft, highlighting the company's manufacturing capabilities. The research firm explained the series of events that led to the short position. On February 27, 2025, Archer Aviation Inc. (NYSE:ACHR) mentioned that its manned Midnight aircraft was 'fully assembled' and that it is 'finishing up ground tests.' However, the research firm mentioned about the emails that were exchanged between the company's own flight test team and the City of Salinas Fire Department. They revealed that the company's flight test team didn't even have the aircraft in their possession until early March. Culper Research also believes that Archer Aviation Inc. (NYSE:ACHR) faked a milestone to unlock an additional tranche of financing from Stellantis. The firm went on to mention that the company's progress in FAA certification has been slow. The company designs and develops aircraft and related technologies and services. While we acknowledge the potential of ACHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACHR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
