Archer Aviation NYSE: ACHR has signaled a significant shift toward commercialization with its Q4 2024 earnings report and the start of its "Launch Edition" program. This strategic move highlights the company's transition from research and development to active preparation for market entry.
Archer Aviation (ACHR -8.18%), a developer of electric vertical take-off and landing (eVTOL) aircraft, hasn't impressed too many investors since it went public by merging with a special-purpose acquisition (SPAC) company on Sept. 20, 2021. The combined company's stock started trading at $9.40 per share, but it didn't initially go much higher and subsequently sank to an all-time low of $1.63 on Dec. 27, 2022.
Archer Aviation is set to launch its first eVTOL aircraft, Midnight, in 2025, targeting early adopters and generating initial revenue in Abu Dhabi. The company has substantial liquidity, with $1.136 billion in cash, but faces high operational expenses and relies on partnerships like Stellantis for scaling production. The eVTOL market could reach $41.5 billion by 2035, with significant potential in both civilian and military applications, boosting Archer's long-term prospects.
Market volatility has picked up, but it's still too early to call a stock market sell-off. After all, the Nasdaq Composite (^IXIC -0.35%) is down just 4.7% year to date, and the S&P 500 (^GSPC -1.22%) is down a little over 1% at the time of this writing.
When Archer Aviation (ACHR 12.12%) released its earnings for the fourth quarter of 2024, it revealed that the company is losing money. The previous earnings report indicated the same issue, and the upcoming one is likely to show a similar situation.
Archer Aviation Inc's stock, ACHR, rose on Friday after analysts on Wall Street updated their ratings following the company's fourth-quarter report released on Thursday.
During the buying craze for meme and growth stocks in 2020 and 2021, many electric vehicle (EV) stocks reached their highest values ever. However, in the next four years, many of these stocks declined as increasing interest rates revealed their inflated prices and highlighted their losses, leading investors to prefer safer options.
Archer Aviation Inc. (NYSE: ACHR) shares increased by 5% in early trading after the company released its fourth-quarter earnings. This rise comes after an 11% decline in after-hours and pre-market trading when the earnings report was first announced.
Ark Funds, managed by Cathie Wood, will have some of their major investments announcing their quarterly earnings this week.
Investors looking at ACHR should avoid including this stock in their portfolio until Thursday, due to its low return on equity (ROE).