Latest news with #FAAcertification
Globe and Mail
22-07-2025
- Business
- Globe and Mail
The Most Important Thing for Archer Aviation Investors to Watch in 2025
Key Points Archer Aviation is advancing toward commercial operations of its Midnight electric vertical takeoff and landing aircraft. The company is currently in the final phase of the certification process. Failure to achieve the requisite FAA certifications would be devastating for the upstart aviation company. 10 stocks we like better than Archer Aviation › For an upstart company like Archer Aviation (NYSE: ACHR) there's no shortage of hurdles that it must overcome. From ensuring that its capital needs are met to forging strategic relationships with manufacturing partners, there are numerous needs for the company to address. But there's one issue that should remain at the forefront of investors' minds regarding the electric vertical takeoff and landing (eVTOL) company over the coming months -- one that undoubtedly is a priority on management's radar. This above all should be on investors' radars Disrupting the aviation industry as Archer is aiming to do is no simple feat. Of the various issues investors are monitoring as the company approaches commercial operations in the wild blue yonder, Archer's progress toward achieving the requisite certifications from the Federal Aviation Administration (FAA) should be the most glaring thing on the radar. Archer has high hopes for Midnight, its innovative eVTOL aircraft, but all of these lofty aspirations mean little if the FAA doesn't provide the necessary certifications. Archer reported significant progress in the certification process in 2024, and the company has advanced even closer toward its goal in 2025. In February, for example, Archer received Part 141 certification from the FAA, allowing it to officially proceed with its pilot training program. In Archer's first quarter 2025 financial presentation, management stated that the company is "largely focused on the fourth and final phase of the certification program and have received FAA approval for [about] 15% of the compliance verification documents." Digging a little deeper into why the FAA certification means so much Archer's ambitions are hardly bound to operating in the United States. In addition to to the operations it plans on commencing in New York and Los Angeles, Archer has signed agreements with Abu Dhabi Aviation and Ethiopian Airlines -- two companies that plan to purchase Midnight aircraft and provide service in their respective countries. These plans are surely just the start for Archer's partnership with companies outside of the U.S. But, as it is with the FAA, Archer must secure the necessary permits to operate in the foreign markets where it plans to expand. The company gained a lot more certainty with respect to operations in other countries in June, when the FAA and the Department of Transportation announced that the U.S. is spearheading a partnership with four other nations that would collaborate on streamlining the certification process and working toward the safe deployment of eVTOL aircraft. With the U.S. at the helm, the alliance includes the United Kingdom, Australia, Canada, and New Zealand. Lauding the five-nation alliance, Archer CEO Adam Goldstein stated, "If you ever wanted to see a bat signal go up into the air and say Advanced Air Mobility is here, eVTOLS will be built, they will be certified and brought around the world, that's today." Should Archer receive the final FAA certification, it should expedite its ability to commence operations in the nations that form the alliance, further indicating why the FAA certification is such a significant catalyst. What's next on the radar for those planning to fly along with Archer stock Archer has excelled at finding customers for its Midnight aircraft. From the air taxi network it's developing in New York with United Airlines to the deals it has inked with Abu Dhabi Aviation and Ethiopian Airlines, Archer is well positioned to soar when it receives clearance for takeoff. But there's the rub. Archer hasn't received the necessary certification -- known as FAA Type Certification. It's critical, therefore, that investors monitor the company's progress in this regard since delays in the certification process would be a tremendous drag on the stock. Moreover, because there are no guarantees that Archer will receive the FAA Type Certification, prospective investors must recognize that an Archer investment carries with it a higher degree of risk, something they must be comfortable with before piloting Archer stock into their portfolios. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
11-07-2025
- Business
- Yahoo
Joby Aviation Just Hit a New 52-Week High. Should You Buy the Flying Car Stock Here?
The electric vertical takeoff and landing (eVTOL) market is rapidly becoming a high-stakes reality, and Joby Aviation (JOBY) is emerging as one of the few serious players in the space. As competition intensifies and the Federal Aviation Administration (FAA) certification process becomes the ultimate gatekeeper, Joby is starting to look less like a speculative bet and more like a focused operator with its eyes on near-term commercialization. With a solid financial backing from Toyota (TM) and a methodical approach to aircraft certification, Joby has steadily chipped away at technical and regulatory milestones. Momentum is beginning to reflect in market action. Shares of Joby Aviation hit a new 52-week high of $11.71 on July 8, driven by investor optimism around both its cash runway and technical achievements. This Underdog AI Stock Just Got a New Street-High Price Target 'The Most Patriotic Thing You Can Do Is Not Pay the IRS' Says Grant Cardone as OBBBA Signed into Law — Here's How Much You'll Save Texas Just Passed Quantum Computing Legislation. How Should You Play IONQ Stock Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Yet, the company has yet to generate revenue, and competitors are also gaining speed. That puts Joby in a high-expectation zone where each quarter needs to show tangible movement. Headquartered in Santa Cruz, California, Joby is a vertically integrated air mobility company developing eVTOL aircraft for commercial passenger service. Its primary goal is to launch aerial ridesharing in the United States and Dubai, allowing consumers to book flights just like ride-hailing services today. With a current market capitalization of $9 billion, Joby has already drawn significant attention. Shares have soared 85% over the past three months and gained 25% in just the past month. The momentum has pushed the stock to trade at roughly 62,000 times sales, a valuation that obviously significantly exceeds sector norms. The premium reflects sky-high expectations tied to the first-mover advantage, certification progress, and growing belief in the viability of urban air mobility. On May 7, Joby Aviation reported its fiscal first-quarter 2025 results. The results saw no revenue, but still moved the stock meaningfully higher. By the next day, shares climbed 3.6%, driven by a narrower-than-expected loss and updates on business progress. Analysts had projected a net loss of $0.19 per share. Joby came in at $0.11, a 21% year-over-year (YOY) improvement that caught Wall Street's attention even in the absence of revenue. Because Joby Aviation is a pre-revenue company, its earnings release focused squarely on certification and operational development. The company reported that it had made substantial progress in the FAA's fourth certification stage, completing 43% of the external requirements and 62% of the internal portion. It also announced the start of routine transition flights with a pilot onboard, a pivotal step toward formal FAA flight testing. Cash remains a key strength. Joby ended the quarter with $812.5 million in cash and short-term investments. The company expects to spend between $500 million and $540 million in 2025, a disciplined burn rate considering the capital demands of final-stage aircraft certification and operational scaling. Toyota's $500 million investment, announced in October 2024, further strengthens that liquidity position. With $250 million from that total expected to be recorded in Q2 results, Joby is well-positioned to sustain certification and early commercial deployment timelines. Despite the strong Q1, analysts expect Q2 2025 loss per share to widen 5.6% YOY to $0.19. However, full-year fiscal 2025 loss per share is expected to narrow by 8.9% to $0.72. Looking further ahead, fiscal 2026 loss per share is projected to narrow another 8.3% to $0.66, showing improving efficiency. Analyst sentiment on JOBY stock remains mixed, with a consensus rating of 'Hold.' Of the nine analysts currently covering the stock, two rate it as a 'Strong Buy,' one sees it as a 'Moderate Buy,' four maintain 'Hold' ratings, and two recommend a 'Strong Sell.' The balanced distribution reflects both excitement over Joby's technical progress and concerns over its long-term execution path. As of now, JOBY stock trades above its average price target of $8.25. Meanwhile, the Street-high target of $13 suggests a potential climb of 12% from current levels. With Joby already achieving meaningful milestones, analysts are watching closely for continued regulatory clearance and progress toward revenue-generating operations. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
