Key Points Archer Aviation's electric vertical takeoff and landing craft could offer a new way to beat urban traffic. Morgan Stanley estimates that eVTOL market will be worth about $9 trillion in 2050. Archer will have to surmount challenges such as regulatory approval and an expensive infrastructure build-out before it will be able to generate significant revenue. 10 stocks we like better than Archer Aviation › Archer Aviation's (NYSE: ACHR) proposed air taxi recently set some new flight records ...

Core Insights - Archer Aviation Inc.'s Midnight aircraft achieved a significant milestone by completing its longest piloted flight of 55 miles in 31 minutes at speeds exceeding 126 miles per hour, which is crucial for its certification process in the U.S. and commercial launch in the UAE [1][9] - The rising urban traffic is increasing investor interest in electric vertical takeoff and landing (eVTOL) solutions, positioning Archer as a leading contender in the eVTOL market due to its partnerships and regulatory advancements [2][11] Stock Performance - Archer's shares have increased by 1.7% over the past six months, underperforming the Zacks Aerospace-Defense industry's growth of 21.3% and the broader Zacks Aerospace sector's gain of 22.5% [3] - In contrast, competitors like Joby Aviation and Embraer have shown remarkable performance, with Joby shares rising by 112.8% and Embraer by 35.9% in the same period [4] Growth Drivers - Recent strategic acquisitions have enhanced Archer's defense program, bringing in advanced technologies and expertise to meet government and defense demand [5] - Test flights in Abu Dhabi and partnerships with Jetex are key steps toward establishing Archer's presence in the Middle East and preparing for commercial operations [5][6] Financial Outlook - Archer is currently manufacturing six Midnight aircraft, with three in final assembly, indicating a focus on international expansion and large-scale commercial rollout [6] - The Zacks Consensus Estimate for Archer's near-term earnings shows a year-over-year improvement, with expected growth rates of 20.83% for the current quarter and 34.51% for the current year [13][14] Valuation - Archer's stock is trading at a discount, with a trailing 12-month Price/Book (P/B TTM) ratio of 3.03X compared to the industry average of 5.77X [16] - Industry peer Embraer is trading at a P/B TTM of 2.85X, while Joby Aviation is at 14.06X, indicating varying market valuations within the sector [18] Market Trends - The global eVTOL market is projected to grow at a compound annual growth rate of 19.2% from 2025 to 2040, driven by increasing demand for urban air mobility and advancements in sustainable transportation [11][12] - Archer, along with Joby Aviation and Embraer, is well-positioned to benefit from this long-term trend as commercial services expand and regulatory support strengthens [11]

Core Viewpoint - Archer Aviation is experiencing significant market attention due to a series of positive developments, including technical achievements and strategic advancements in both commercial and defense sectors [1][2][3]. Group 1: Market Reaction and Stock Performance - Following the earnings report on August 11, Archer's stock jumped 7.32% on August 12, with trading volume reaching nearly 65.5 million shares, almost double the three-month average [4]. - The stock has maintained a year-to-date gain of nearly 6% and a remarkable one-year gain of over 190% [5]. - A notable 6.8% decrease in short interest indicates a shift in sentiment among bearish investors, suggesting a re-evaluation of the company's prospects [5][6]. Group 2: Technical Progress and Flight Milestones - Archer's Midnight aircraft completed its longest piloted flight of 55 miles, demonstrating endurance relevant for urban air mobility routes [8]. - The flight lasted 31 minutes and exceeded speeds of 126 miles per hour, providing valuable performance data for the FAA [13]. Group 3: Strategic Acquisitions and Defense Opportunities - Archer is establishing a military and defense business vertical, highlighted by two acquisitions aimed at accelerating its Archer Defense program in partnership with Anduril Industries [10]. - The acquisitions include a patent portfolio and engineering talent from Overair, as well as composite manufacturing assets from Mission Critical Composites, enhancing in-house capabilities for military applications [11][12]. Group 4: Financial Position and Analyst Outlook - Archer's stock price forecast suggests a potential upside of 44.47%, with an average target of $13.43 based on eight analyst ratings [13][14]. - Following a successful capital raise, Archer concluded Q2 with approximately $1.8 billion in liquidity, providing a strong financial foundation for future operations [15]. - The combination of technical progress, strategic acquisitions, and a robust balance sheet positions Archer as a leader in the next generation of aviation [16][17].

Key Takeaways Joby Aviation (JOBY) , a leading player in the electric vertical takeoff and landing (eVTOL) space, reported second-quarter 2025 results on Aug. 6, which fell short of expectations and also compared unfavorably with the prior-year quarter. The company incurred a loss that was not only wider than expected but also compared unfavorably with the year-ago loss. JOBY also witnessed a 46.4% year-over-year decline in revenues, which also fell short of the consensus mark. A Deeper Look into Joby's Q2 ...

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]

Core Viewpoint - Archer Aviation is experiencing a significant stock price decline despite achieving operational milestones in the development of electric vertical takeoff and landing (eVTOL) aircraft, raising questions about the underlying reasons for this pullback [1][2][17]. Market Performance - As of mid-April 2025, Archer's shares have declined approximately 28% year-to-date, contrasting sharply with a 136% increase over the previous six months [2]. - The stock price was around $6.90 as of April 10, 2025, down from a higher valuation, primarily influenced by external market factors [3][17]. External Factors - Broader market sell-offs, geopolitical tensions, regulatory news, and macroeconomic anxieties have negatively impacted growth-oriented technology stocks like Archer [3][4]. - Concerns about a potential recession and tariff discussions disproportionately affect pre-revenue companies reliant on future growth and capital access [4]. Internal Factors - Insider selling activity, particularly in March 2025, has raised concerns, with total insider sales over the past year amounting to $15.36 million [5]. - Increased short interest, exceeding 15% of the float as of March 31, 2025, has created additional headwinds for the stock price [6]. Operational Progress - Archer Aviation has made significant strides in its commercialization roadmap, including a partnership with Ethiopian Airlines for its "Launch Edition" program, valued at up to $30 million [7][8]. - The company plans to deploy Midnight aircraft in Abu Dhabi, with test flights scheduled for Summer 2025 and a commercial launch targeted before the end of 2025 [9][11]. Upcoming Milestones - Key upcoming events include the arrival of the first Midnight aircraft in Abu Dhabi, FAA Type Certification progress, and potential updates from the Archer Defense division regarding hybrid VTOL development [10][12][13]. - Successful execution of these milestones is crucial for validating the company's operational readiness and attracting investor confidence [11][19]. Analyst Sentiment - Despite recent stock fluctuations, analysts maintain a moderate buy rating for Archer Aviation, with an average 12-month price target of $11.61, indicating a potential upside of over 68% [15][16]. - The stock's market capitalization is approximately $3.74 billion, with liquidity exceeding $1 billion, suggesting a solid financial position to support development [16].