Latest news with #ArcherAviation
Yahoo
18 hours ago
- Business
- Yahoo
Should You Buy Archer Aviation While It's Below $13.30?
Archer Aviation is attempting to build a business around air taxis. The company is targeting important milestones in 2025. The stock has pulled back from its 52-week high of $13.30. 10 stocks we like better than Archer Aviation › Archer Aviation (NYSE: ACHR) is a stock that only more aggressive investors will want to look at. That's because it is a start-up that doesn't generate any revenue or profits. And yet the opportunity ahead of this aviation business could be hugely exciting, with 2025 likely to be the year that Archer Aviation, literally, takes off. Here's what you need to know -- and why $13.30 is an important number to think about. Archer Aviation has created an electric vertical takeoff and landing (eVTOL) aircraft that it calls Midnight. It is a small, vertical lift plane meant to travel short distances. Effectively, the goal was to create what amounts to an air taxi, and Archer Aviation has achieved that goal. Only that's not the final hurdle, it was just the starting point. The airline industry is highly regulated, given that plane crashes are high profile and usually deadly. Getting clearance from the FAA for a new plane is a multistep process that can take years. This is why Archer Aviation creating one functional eVTOL isn't enough. The goal is to produce up to 10 Midnight eVTOLs in 2025, with most of them set to be used for the approval process. At the end of the first quarter of 2025, the company estimated that it was only 15% of the way through the FAA approval process. In other words, there's a long way to go before Archer Aviation's Midnight eVTOL is approved to fly in the United States. But that doesn't mean it can't fly elsewhere. And that is the big news that investors will want to watch in 2025. The most important goal for Archer Aviation in 2025 is likely to be carrying the first commercial customers on its Midnight eVTOL in Abu Dhabi. That is where it is currently working with a partner to set up an air taxi service. There are a number of steps to achieve before that happens, including building and delivering a Midnight eVTOL to the country. But this will be the first true test of Archer Aviation's business idea. Given that Archer Aviation is, effectively, a story stock, the successful launch of an air taxi service will likely lead to a higher stock price. The 52-week high was $13.30 per share, and that could easily be eclipsed when Midnight eVTOLs start getting used to carry commercial customers. There's more than one reason for that. Archer Aviation's goal is to both sell aircraft and run its own air taxi service. It has already set the foundation for running air taxis in the United States. It has FAA approval to operate as an airline and FAA approval to train pilots on how to use its aircraft. The company also has plans for air taxis in California and New York lined up so it can hit the ground running once it gets the FAA nod for domestic use of the Midnight eVTOL. A successful outcome in Abu Dhabi would basically help to assure investors that Archer Aviation's longer-term plans are feasible. And it would provide a blueprint for the company to follow for its own ramp-up, smoothing the process of starting domestic air taxi services. That doesn't even consider the customer side, with every safe flight in Abu Dhabi likely increasing the chances that U.S. customers will feel comfortable taking a ride in a new type of aircraft. The first question to ask here is whether a high-risk investment like Archer Aviation is right for your portfolio. No revenue, no earnings, and a still-untested product suggest that most will probably want to sit on the sidelines until a few more key milestones have been reached. But more aggressive investors who buy now could be getting in before what is likely to be a very important turning point for Archer Aviation. It wouldn't be surprising to see the stock jump above its 52-week high of $13.30 per share on news of the first commercial flight in Abu Dhabi, which would be the first sign that the puzzle pieces are starting to come together. 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 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Archer Aviation While It's Below $13.30? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
a day 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
2 days ago
- Business
- Yahoo
Down 20%! This ex-penny stock just got stung by a short report
Archer Aviation (NYSE: ACHR) is a former penny stock that has been on my mind recently. I sold shares of this flying taxi start-up about a year ago, just before they went on to surge by more than 200%. Cue Homer Simpson's famous catchphrase… Rubbing salt in the wounds was rival Joby Aviation (NYSE: JOBY), the stock I doubled down on with the cash from that Archer sale. Until recently, it was 'only' up about 40% over this period. So I was beginning to think I might have backed the wrong horse, especially after Archer signed a deal with Palantir earlier this year to 'build artificial intelligence (AI) for the future of next-gen aviation technologies'. However, two pieces of news have recently sent the Archer and Joby share prices on divergent flight paths. Here's what has happened. Archer Aviation is aiming to launch an air taxi service in Abu Dhabi by the end of 2025 with its Midnight electric vertical take-off and landing (eVTOL) aircraft. In Q1, it said everything had gone splendidly, and it had more than $1bn on the balance sheet. Founder and CEO Adam Goldstein commented: 'Archer's pushing the boundaries of what's possible and reshaping the future of aviation for years to come.' The stock jumped 23% after this bullish update. However, it plummeted 20% a couple of weeks ago when short-seller Culper Research released a report accusing Archer of misleading investors. It said the firm's Midnight eVTOL isn't as far along as management has claimed, while also highlighting design changes that might suggest aircraft stability problems. In response, Archer called the claims 'baseless', and said Culper is 'not a credible research institution'. By contrast, Joby stock surged 27% this week following the closure of a $250m investment from partner Toyota. This funding supports the firm's progress toward FAA certification and commercial production of its electric air taxis. Founder and CEO JoeBen Bevirt commented: 'We're already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimising design.' Joby remains on track to launch its service in Dubai later this year, but there could always be regulatory setbacks. Meanwhile, flying passengers safely from Manchester Airport to Leeds in just 15 minutes — instead of one hour+ by car or train — is still unproven. In my experience, reports from short-sellers need to be taken seriously, even though they have a financial incentive to see the stock in question fall. It definitely adds risk to the investment case because Archer hasn't addressed any of the specific accusations yet. That said, you can normally gauge how seriously other investors take the claims by the severity of the share price reaction. In Archer's case, it's 20% lower than before the report, but still up 27% in the past month and 230% over a year. Heavyweight partners like United Airlines and Stellantis add weight to its technology. For investors looking to invest in this exciting space, I think Joby is worth a look at $8. But both these stocks are high risk because eVTOLS haven't been approved by the FAA yet, meaning each firm is pre-revenue and therefore loss-making. Still, at least recent developments have eased my concern that I backed the wrong horse. The post Down 20%! This ex-penny stock just got stung by a short report appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has positions in Joby Aviation. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 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
Entrepreneur
3 days ago
- Business
- Entrepreneur
Archer Aviation Stock Steadies After Short-Seller Report
Archer Aviation's stock shows resilience after a short-seller report, as investors shift to the upcoming milestones and flight demonstrations for validation. This story originally appeared on MarketBeat [content-module:CompanyOverview|NYSE:ACHR] Archer Aviation (NYSE: ACHR) recently found itself in the spotlight after a critical report from short-seller Culper Research on May 20th caused its stock to dip. However, in the days since, Archer's shares have shown signs of stabilizing. At midday on May 29, 2025, the stock price was approximately $10.66. Acher Aviation's stock activity, since the report suggests the market might be looking past the initial shock. Now, investor attention is sharply focused on Archer's upcoming operational milestones. Can the company deliver the flight demonstrations needed to fully counter the short-seller's claims and propel the stock forward? How Did Archer Stock Respond to Short Seller Claims? Culper Research's report on May 20 didn't pull any punches. It accused Archer Aviation of misleading investors about its progress. Key allegations included questions about testing timelines for its Midnight eVTOL aircraft and the validity of a key flight milestone in June 2024. Archer quickly responded, calling the claims "baseless" and questioning Culper's credibility as a research firm. What happened to the stock? Initial Drop: Archer's stock price fell sharply right after the report, by as much as 12-14% during trading on May 20 and 21. Archer's stock price fell sharply right after the report, by as much as 12-14% during trading on May 20 and 21. Finding a Floor: Over the following days, up to May 29, the stock price showed signs of stabilizing. It even saw some upward movement on May 27 and 28, closing at $10.93 and $10.95, respectively. Over the following days, up to May 29, the stock price showed signs of stabilizing. It even saw some upward movement on May 27 and 28, closing at $10.93 and $10.95, respectively. Market Interpretation: This stabilization might mean a couple of things. First, the market quickly priced in the short-seller's arguments. Second, without new, equally damaging information from Culper immediately following up, some investors may be taking a "wait and see" approach. They might be looking for Archer to prove its case through actions, not just words. Recent financial news has highlighted the ongoing dispute between the two organizations, presenting both perspectives. This media coverage has likely confused most investors, further stalling Archer's stock price progress as the market awaits a resolution. What Archer's Institutional Filings Reveal While daily stock prices can be volatile, looking at who owns a company can offer a different perspective. Reports from large institutional investors (like pension funds and investment firms) about their holdings at the end of the fourth quarter of 2024 continued to be filed with the Securities and Exchange Commission (SEC) during the past few weeks. These filings continue to show that many major institutions were increasing their investments in Archer before the short report surfaced. This kind of activity from large, sophisticated investors often suggests they've done their homework and believe in a company's long-term plans. This implies that they saw fundamental value in Archer leading into 2025. Archer's strong Q1 2025 financial results, reported on May 12, also provide a solid foundation. The company announced an earnings per share (EPS) that beat analyst expectations and confirmed its cash position exceeded $1 billion. This financial health is crucial for a company still developing its core product. Archer's Next Demonstrations Are Critical The most effective way for Archer to answer the short-seller's claims is through clear, verifiable progress. Investor attention is now firmly fixed on the company's ability to deliver on its stated operational targets. Key upcoming milestones include: UAE Deployment: Archer plans to deliver its first piloted Midnight aircraft to the United Arab Emirates this summer (2025). The goal is to start generating revenue there later in the year through its "Launch Edition" program with partners like Abu Dhabi Aviation. Archer plans to deliver its first piloted Midnight aircraft to the United Arab Emirates this summer (2025). The goal is to start generating revenue there later in the year through its "Launch Edition" program with partners like Abu Dhabi Aviation. Manufacturing Goals: The company aims to build up to ten Midnight aircraft at its Georgia facility in 2025. Hitting this target would demonstrate its ability to scale production. The company aims to build up to ten Midnight aircraft at its Georgia facility in 2025. Hitting this target would demonstrate its ability to scale production. FAA Certification: Continued progress towards getting full Type Certification from the Federal Aviation Administration for its Midnight aircraft in the U.S. (targeted for late 2025) remains a top priority. Continued progress towards getting full Type Certification from the Federal Aviation Administration for its Midnight aircraft in the U.S. (targeted for late 2025) remains a top priority. New Initiatives: Updates on the UK cargo eVTOL testing program with Anduril UK could also show operational capability in new areas. The successful execution of these milestones, particularly visible flight demonstrations leading to early commercial operations, would directly counter many of the short-seller's core allegations regarding aircraft readiness and testing progress. As the saying goes, actions speak louder than words. Holding Pattern or Launchpad? Archer's Next Moves Will Tell [content-module:Forecast|NYSE:ACHR] Archer Aviation's stock is in a period of consolidation after the initial impact of the Culper Research report. The market has heard the allegations and the company's defense. Now, it seems to be waiting for Archer to deliver concrete proof of its capabilities through upcoming operational validation. If Archer successfully executes its flight demonstrations, meets its UAE deployment timelines, and continues to progress with manufacturing and certification, the questions raised by the short report will likely become less significant for many investors. For those who believe in Archer's technology and the future of the eVTOL sector, this holding pattern could be an excellent period to accumulate shares before the company's next set of crucial operational catalysts. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Yahoo
4 days ago
- Business
- Yahoo
Better Growth Stock: Archer Aviation vs. Rocket Lab USA
Archer Aviation plans to deliver a lot more aircraft. Rocket Lab plans to launch more rockets. One of these companies has a clearer vision for the future. 10 stocks we like better than Archer Aviation › Archer Aviation (NYSE: ACHR) and Rocket Lab USA (NASDAQ: RKLB) are both highly speculative aerospace stocks. Archer is a developer of electric vertical take-off and landing (eVTOL) aircraft, while Rocket Lab sells reusable orbital rockets. But over the past 12 months, Archer's stock soared more than 220% as Rocket Lab's stock surged over 500%. Let's see if either of these hot stocks is worth buying as a growth play today. Archer's flagship Midnight eVTOL aircraft can carry one pilot and four passengers. It can travel up to 100 miles on a single charge with a maximum speed of 150 miles per hour. It promotes the Midnight as a cheaper, greener, and easier-to-land alternative to helicopters, and it's already working with major airlines, automakers, and the U.S. Air Force to provide air taxi services. The company also plans to launch its own air taxi service, which it claims will cost roughly the same as Uber Technologies' premium UberBlack service within the next two years. Archer's backlog already includes hundreds of orders, and it claims it can increase its annual production to 10 aircraft in 2025, 48 aircraft in 2026, 252 aircraft in 2027, and 650 aircraft in 2028. It believes it can eventually manufacture up to 2,000 aircraft annually as it scales up its business. That growth trajectory would be incredible, but Archer has only delivered a single Midnight aircraft to the U.S. Air Force so far. That delivery didn't generate any revenue because it was a test aircraft, but Archer expects to deliver its first "revenue-generating" aircraft to Abu Dhabi Aviation for its new air taxi service by the end of this year. Archer also partnered with Palantir Technologies, a leading provider of analytics and AI services for the U.S. government, this March to accelerate the production of its aircraft and strengthen its aviation systems. Analysts expect Archer's revenue to rise from nothing in 2024 to $12.7 million in 2025, $143.9 million in 2026, and $437.1 million in 2027. But with a market capitalization of $5.8 billion, it already trades at 13 times its projected sales for 2027 -- so a lot of growth is already baked into its high-flying shares. The company also won't come close to breaking even anytime soon. But if you expect Archer's eVTOL aircraft to replace helicopters over the next decade, it might just deserve that higher valuation. Rocket Lab's flagship reusable rocket, the Electron, is used to carry small payloads of up to 300 kilograms into space. It's been successfully launched 64 times, was used to deploy 225 satellites, and operates from three dedicated launch pads. Its next rocket, the Neutron, will carry a maximum capacity of 15,000 kilograms when it launches in the second half of this year. The company already serves large customers like NASA, the U.S. Space Force, the Swedish National Space Agency, Capella Space, and BlackSky Technology. It launched six rockets in 2021, nine in 2022, 10 in 2023, and 16 last year. From 2021 to 2024, Rocket Lab's annual revenue rose more than sevenfold from $62 million to $436 million as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved from negative 70% to negative 22%. Over the past year, it shipped two research satellites for NASA and gained an additional contract for the agency's next Mars mission. It also agreed to deploy a constellation of 25 satellites for Kinéis, a global Internet of Things (IoT) connectivity provider, sealed a multiyear Electron launch contract with Japan's Institute for Q-shu Pioneers of Space (iQPS), and secured new U.S. defense contracts. From 2024 to 2027, analysts expect Rocket Lab's annual revenue to nearly triple from $436 million to $1.18 billion. They also expect its adjusted EBITDA to turn positive in 2026 and for it to turn fully profitable by 2027. That rosy outlook suggests it will keep thriving in the shadow of its bigger competitor, SpaceX, which launched a record 138 Falcon rockets in 2024. But with a market cap of $11.7 billion, it also isn't a bargain at nearly 10 times its projected sales for 2027. Archer Aviation could have plenty of upside potential if the nascent eVTOL market takes off, but it hasn't proven that its business model is sustainable yet. Meanwhile, Rocket Lab USA has significantly ramped up its launches over the past few years, it's developing new rockets, and its margins are steadily improving as economies of scale kick in. So, if I had to pick one of these speculative stocks over the other, I'd stick with Rocket Lab because it seems better prepared to expand its fledgling business. 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Uber Technologies. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy. Better Growth Stock: Archer Aviation vs. Rocket Lab USA was originally published by The Motley Fool Sign in to access your portfolio
