Archer Aviation Faces Stock Slide Amid Funding and Earnings Concerns

Archer Aviation Inc. stock experiences a downturn due to funding news and upcoming earnings expectations. Investors remain watchful as capital raises impact valuation.

Date: 26-02-2025

AI Rating: 5

Earnings Per Share (EPS): Archer is projected to report earnings of negative 25 cents per share, indicating ongoing losses. This is an improvement from the negative 35 cents per share reported in the same quarter in 2024, yet it reflects a company still far from profitability.

Revenue Growth: The revenue expectation of $200 million demonstrates an ambitious outlook despite being in the pre-revenue phase. While there is potential for growth, the lack of positive earnings underscores the financial risks.

The news mentions that Archer secured $301.8 million in funding, which denotes commitment towards advancing their electric vertical take-off and landing (eVTOL) platform. The capital raise will aid in building their initial fleet but at the expense of share dilution, limiting the upside for some investors. Furthermore, the possible impact of the Trump administration’s request for cost-cutting at the Department of Defense has added uncertainty regarding Archer's $148 million deal with the U.S. Air Force.

Overall, while Archer has shown significant stock growth of over 89% in the last year, industry sentiment appears to lean negative at the moment due to market sell-offs and regulatory hurdles. The upcoming earnings report on February 27 could introduce further volatility, with analysts maintaining a bullish outlook despite the current challenges.

Stocks: ACHR