Key Takeaways ACHR stock jumped 113.4% in a year, beating its industry, sector and the broader market. Global partnerships in July support Archer Aviation's commercial launch plans for Midnight aircraft. Earnings estimates are improving, but lack of revenues and negative ROIC raise long-term concerns.Archer Aviation Inc. ((ACHR) is moving closer to making electric air taxis a reality. Its main aircraft, Midnight, is making notable progress as the company prepares for its commercial launch soon. In early J ...

So-called "flying taxis" are going mainstream, and investors are rushing into shares of the early market leaders.Joby Aviation (JOBY 10.59%) stock traded up as much as 14.9% at the market open and were up 8.6% as of 10:30 a.m. ET after President Donald Trump signed an executive order aiming to "unleash" development of the company's new flying machines. Markets taking shapeJoby is one of a handful of aerospace companies racing to bring electric aircraft capable of vertical takeoffs and landings, or eVTOLs, t ...

Hard numbers validate the investment case. Archer Aviation sports a prospective $6 billion order backlog, a figure that nearly matches its current $6.1 billion market capitalization. While execution on this order book will be critical, the clear-cut demand for the company's unique aircraft is a promising sign for long-term investors. Beyond aviation, strategic partnerships with Anduril Industries and Palantir Technologies (PLTR 1.58%) position Archer Aviation to monetize autonomous defense systems and artif ...

Core Insights - The urban air mobility market is transitioning from concept to reality, with eVTOL aircraft leading the charge, presenting opportunities for companies like Archer Aviation and Joby Aviation [1][2] Company Overview: Archer Aviation (ACHR) - Archer Aviation is advancing with its Midnight eVTOL aircraft and has established partnerships with United Airlines and the U.S. Air Force, focusing on scalable manufacturing [2] - As of the end of 2024, Archer had over $1 billion in liquidity, with long-term debt of $75 million and no current debt, positioning it well for future investments [3][4] - Archer's growth is supported by collaborations, including a partnership with Anduril Industries for a hybrid VTOL aircraft and agreements with UAE entities for electric air taxi operations [4] - The company plans to launch its Midnight eVTOL commercially by late 2025, with a manufacturing facility of 400,000 square feet expected to be completed in late 2024 [5] Company Overview: Joby Aviation (JOBY) - Joby Aviation holds nearly $1 billion in cash as of December 31, 2024, with no long or short-term debt, providing financial flexibility for aircraft design and manufacturing [6] - Joby's growth is enhanced by strategic partnerships, including a recent collaboration with Virgin Atlantic for air taxi services in the UK, and it is the first eVTOL company to receive a Part 135 Air Carrier Certificate from the FAA [7] - The company aims to deliver its eVTOL aircraft to Dubai by mid-2025 and start commercial operations by late 2025 or early 2026, with plans for a high-rate production facility in Dayton, OH [8] Market Challenges - Both Archer and Joby are navigating a capital-intensive environment, with the sustainability of their business models uncertain due to the nascent eVTOL market [9] - Public acceptance of eVTOLs may face challenges related to safety, noise, and affordability, which could limit growth potential [10] - Both companies are in a pre-revenue stage, raising concerns about long-term growth viability among investors [11] Financial Performance and Estimates - The Zacks Consensus Estimate indicates that Archer's loss per share for 2025 and 2026 is expected to improve year-over-year, although estimates have trended downward recently [12] - Joby's loss per share estimates for 2025 and 2026 also suggest year-over-year growth, but near-term estimates have similarly declined [13] Stock Performance - Over the past three months, Archer's stock has decreased by 7.9%, outperforming Joby's 21.6% decline, while both stocks have seen significant increases over the past year, with Archer up 119.8% and Joby up 27.7% [16] Conclusion - Both Archer and Joby are positioned to capitalize on the emerging eVTOL market, but they remain speculative investments with significant execution and regulatory risks [18] - Archer may offer better near-term upside based on recent stock performance, but both companies face substantial risks [19]