Al Root
Archer Aviation stock rose early Monday, rallying after a painful and surprising week for investors.
Shares of the electric vertical takeoff and landing (eVTOL) aircraft maker were up 3.2% at $8.46 in early trading, while the S&P 500 and Dow Jones Industrial Average were up 0.9% and 0.4%, respectively.
The move comes after shares fell 27% this past week. There were a few reasons for the declines.
For starters, there were earnings reported on Nov. 6. The company posted a 20-cents per-share loss, smaller than the 30-cents loss Wall Street was expecting. Earnings, however, don't matter yet. Archer doesn't generate sales. It's working on approving its Midnight eVTOL with aviation regulators. Archer hopes it will enter commercial service in 2026.
Along with earnings, Archer announced the acquisition of Hawthorne Airport in Los Angeles to serve as a "strategic hub for Archer's planned L.A. Air Taxi network, and testbed for AI-powered technologies under development."
"Honey, we bought an airport," wrote Raymond James analyst Savanthi Syth in a Friday report. "While Hawthorne is reminiscent of Joby's Blade acquisition, including the added complexity, a notable differentiator is that Hawthorne is profitable."
In August, Joby Aviation bought Blade Air Mobility's Air Taxi business.
Syth rates Archer shares Buy, but cut her price target by $1 to $13 a share. Overall, 86% of analysts covering Archer Aviation stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.
The average analyst price target for Archer stock is about $12.70, down $1 since earnings were reported.
One reason for lower target prices is to account for dilution from a $650 million equity raise, also announced with earnings. The extra stock is worth it, according to Syth. It gives Archer more cash to develop its business. Archer is using about $500 million per year and isn't expected to be cash-flow positive until 2029, according to FactSet. Archer has more than $2 billion in total liquidity on its balance sheet.
Coming into Monday trading, Archer stock was down 16% so far this year, but up 110% over the past 12 months. Things have changed fast for Archer investors. Shares were north of $14 in October.
Investors will be relieved to see the stock up on Monday and hope the rally lasts.
Write to Al Root at allen.root@dowjones.com
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November 10, 2025 09:55 ET (14:55 GMT)
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