Archer Aviation Keeps Falling. Is the eVTOL Stock Too Cheap to Ignore?

"Archer Aviation ( ) saw its stock plunge last week following its third-quarter earnings report and the unexpected announcement of acquiring Hawthorne Municipal Airport in Los Angeles for $126 million. The earnings showed a narrower-than-expected loss, but investors focused on the dilution from a share sale to fund the deal and ongoing cash burn concerns. Shares dropped nearly 20% on Thursday, erasing all the gains accumulated since April when the stock traded around $4 per share."

"The current price around $8.45 marks a 42% decline from its 52-week high of $14.62 hit last month, and a 13% drop year-to-date. Despite this, Archer's stock remains up 163% over the past 12 months, reflecting optimism in the electric vertical takeoff and landing (eVTOL) sector. Yet after a Raymond James analyst reiterated his buy rating on Friday, the shares bounced 3% yesterday, though he also trimmed the price target by $1 to $13 per share."

"However, the analyst also noted risks from elevated capital needs, with Archer's cash position at $1.6 billion after earnings, but projected a cash burn of $400 million to $500 million annually until revenue ramps up. Among the benefits of Archer's business is its partnerships, such as with Stellantis ( ) for manufacturing and United Airlines ( ) for orders, positioning it ahead in scalability. Critics argue the analysis overlooks execution hurdles, such as FAA delays, which could push back anticipated 2026 commercial launches."

Archer Aviation's stock plunged after third-quarter earnings and an unexpected $126 million purchase of Hawthorne Municipal Airport in Los Angeles. Earnings showed a narrower-than-expected loss, but investors focused on dilution from a share sale to fund the deal and ongoing cash-burn concerns. Shares fell nearly 20%, erasing gains since April; the price near $8.45 is 42% below the 52-week high and 13% down year-to-date, while remaining 163% higher over 12 months. A Raymond James analyst reiterated a buy but trimmed the $13 target, noting a $1.6 billion cash balance and projected $400–$500 million annual cash burn. Partnerships with Stellantis and United improve scalability, while FAA delays and execution risks could delay 2026 commercial launches.

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