Latest news with #ACHR
Globe and Mail
an hour ago
- Business
- Globe and Mail
Could a $25,000 Investment Into Archer Aviation Stock Make You a Millionaire?
One of the hottest growth stocks of late is Archer Aviation (NYSE: ACHR), which has the potential to revolutionize travel with its electric vertical take-off and landing (eVTOL) aircraft. People taking its Midnight aircraft could conceivably fly over gridlock rather than being stuck in bumper-to-bumper traffic. There are many possible uses for the piloted electric air taxi, which is quieter than a helicopter and has zero operating emissions. Given all the potential for the stock, can this be a possible 40-bagger investment -- one that turns a $25,000 into $1 million in the future? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The business is still in its very early stages One thing investors need to be aware of is that while there are significant opportunities for Archer, it still has to obtain approval for its Midnight aircraft, and for it to produce it at scale. It has obtained multiple approvals from the Federal Aviation Administration thus far, and the hope is that it may not be too long until the aircraft is cleared for use in the U.S. But even if that happens, the company still needs to ramp up production. The Midnight aircraft can accommodate four passengers, so the company will need to develop a considerable fleet before it can truly become a big player in the air taxi industry. Its goal is to be producing 650 aircraft per year by the end of the decade. This year, it's aiming to get to just two per month. Since it's so early in its development, Archer isn't generating any revenue thus far, and its losses have totaled $514 million over the past four quarters. The good news is the business is already seeing strong demand, with a backlog of around $6 billion thus far, including United Airlines, which has ordered 200 of Archer's eVTOL aircraft already, plus an option for 100 more. Is a valuation of $220 billion a possibility for Archer? If Archer proves to be a 40x investment, its valuation would need to reach more than $220 billion in the future, given its current market cap of around $5.6 billion. If air taxis truly revolutionize travel and demand for Archer's aircraft takes off, that can be a possibility in the very long run. But that's a scenario that's also riddled with multiple ifs. The necessary infrastructure needs to be built, and air spaces would become more crowded, which could result in greater legislation and red tape along the way. And with the company still in the early stages of producing its aircraft, it's also difficult to know what kind of margins it will make on them and how profitable the business may or may not be. A lot of things would need to go right for the business for it to be worth well over $200 billion. Forecasting the future for an industry that's still in its infancy is not easy. And while there's certainly potential for Archer's valuation to grow significantly, investors shouldn't assume that the stock is destined for greatness and that it can generate 40x returns, even over the very long term. Should you invest in Archer stock today? Even though investing in Archer may not be a surefire path to becoming a millionaire, it may still be a growth stock worth adding to your portfolio. If you're comfortable with the risk and uncertainty that comes with this business, it could make for a good buy-and-hold investment. However, given the risk involved, I wouldn't suggest investing more than 5% of your portfolio into the stock. By allocating just a modest amount of money into Archer, you can limit your losses while still giving yourself the possibility to benefit from its growth in the long run. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
2 days ago
- Automotive
- Yahoo
Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here?
Valued at a market cap of $5.5 billion, Archer Aviation (ACHR) designs and develops aircraft and related technologies in the U.S. It is a prominent player in the emerging electric vertical takeoff and landing (eVTOL) industry, and has struck commercial deals aimed at transforming urban air mobility (UAM). Although its flagship eVTOL is still going through rigorous testing and securing regulatory approval before commercial launch, Archer is working to secure business in advance. And, in recent months, the company is also quickly building out its defense business. Trump Is Giving Tesla's Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now? Dear Nvidia Stock Fans, Mark Your Calendars for July 16 The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Archer Aviation is strategically pivoting toward defense contracts as commercial air taxi deployment faces extended timelines. In fact, CEO Adam Goldstein recently predicted that defense could become 'the biggest part of our business' in the near term. The electric aircraft manufacturer's shift reflects broader industry trends, as air taxi developers confront slower-than-expected progress in launching passenger services. On the flip side, President Donald Trump is ramping up military spending with a focus on defense innovation. This presents Archer with an opportunity to capitalize through strategic partnerships, including its collaboration with weapons maker Anduril Industries to develop hybrid-fueled military aircraft. Archer secured its first major defense contract in 2023, partnering with the U.S. Air Force to provide quieter, cost-effective eVTOLs for supply delivery and non-combat applications. This positions the company to capture immediate revenue while commercial markets mature. Bloomberg Intelligence analysts project that fewer than 30,000 air taxis will be flying by 2040, a level that would be unprofitable, requiring companies to diversify into defense, cargo, and hybrid variants. This tepid forecast validates Archer's defense-focused approach, as traditional air taxi timelines extend beyond initial projections. The defense pivot offers Archer near-term revenue potential while maintaining long-term commercial opportunities. However, investors should consider execution risks and the company's ability to navigate defense contracts and eventual commercial scaling. Archer Aviation ended Q1 2025 with more than $1 billion in cash, providing it with a substantial runway for its ambitious commercialization plans. Its UAE deployment remains on track for late 2025, with the first Midnight aircraft currently in flight testing before delivery. The company has secured government backing from the Abu Dhabi Investment Office, a regulatory pathway approval from the UAE General Civil Aviation Authority, and an operational partnership with Abu Dhabi Aviation as its first Launch Edition customer. Critical infrastructure is also advancing, with the UAE's first hybrid heliport conversion approved and pilot training underway at Etihad Aviation Training. Notably, Archer Aviation has forged a foundational AI partnership with Palantir (PLTR) to develop next-generation aviation software. This collaboration will focus on enhancing manufacturing scalability, movement control, and route planning. Additionally, Archer announced plans with United Airlines (UAL) for a New York City air taxi network, aiming to replace 1- to 2-hour drives with 5- to 15-minute flights between Manhattan and nearby airports. Q1 results showed controlled spending, with total operating expenses of $144 million and a net loss of $93.4 million, an improvement from the prior-year period. The company raised $301.8 million in gross proceeds during the quarter, strengthening its balance sheet for upcoming commercial operations. With 15% of FAA compliance verification documents approved and successful engine failure testing demonstrating aircraft redundancy, Archer appears well-positioned for its commercial aviation transformation. While still in the pre-revenue stage, Archer is focused on increasing sales from a forecast $144 million in 2026 to $1.36 billion in 2029. Moreover, the company is expected to turn profitable in 2029, with earnings per share of $0.33. If the aviation stock is priced at 10 times forward sales, it will have a market capitalization of $13.6 billion, indicating upside potential of over 100% from current levels. Out of the nine analysts covering ACHR stock, five recommend 'Strong Buy,' two recommend 'Moderate Buy,' and two recommend 'Hold.' The average target price of Archer Aviation stock is $12, indicating upside potential of roughly 20% from current levels. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
3 days ago
- Business
- Business Insider
‘Padding the Coffers Ahead of Lift Off,' Says Canaccord About Archer Aviation Stock
Archer Aviation (NYSE:ACHR) may have ruffled some feathers with news of dilution, but raising capital is often a necessary step – especially, pardon the pun, for companies looking to get projects off the ground. Confident Investing Starts Here: As it prepares to participate in the White House's newly announced eVTOL Integration Pilot Program (eIPP), Archer last week announced an $850 million private placement. It raised $817.1 million in net proceeds by selling 85 million shares of Class A common stock to institutional investors at $10 per share. The offering should lift Archer's cash reserves to around $1.8 billion – among the highest in the industry – based on its 1Q25 ending balance. The new funds are expected to support accelerated manufacturing and certification efforts tied to the eIPP. Canaccord analyst Austin Moeller thinks Archer's 'timely capital infusion' underscores the significance of Trump's executive order aimed at fast-tracking eVTOL deployment in the U.S. The eIPP, a key provision within the Unleashing American Drone Dominance EO, establishes a training program to showcase five U.S.-based eVTOL or UAM (urban air mobility) projects on an 'accelerated timeline' ahead of the 2028 LA Olympics. The Department of Transportation has 180 days to select the five aircraft designs. While dilutive and likely to raise questions about cash use, Moeller points out that the capital raise 'financially positions Archer Aviation to be a leader in US eVTOL aircraft deployment at key US airports (Newark, Chicago O'Hare) via the eIPP, in addition to providing a substantial capital backstop as manufacturing operations ramp in Covington, GA, for both commercial eVTOL passenger aircraft and hybrid-VTOL tactical drones.' With an estimated FY25 cash burn of around $466 million, Archer now has a 'significant runway' to scale up manufacturing over the next few years, which should also pave the way for revenue or cash deposits from its international 'Midnight Launch Edition' program. Meanwhile, on Monday Archer announced that it has partnered with PT. Industri Ketahanan Nasional (IKN) to deploy an initial fleet of its Midnight aircraft in Indonesia, the third country tapped for its 'Launch Edition' program. Archer has previously announced Launch Edition deployments in the UAE through a partnership with Abu Dhabi Aviation, and in Ethiopia via Ethiopian Airlines. Against this backdrop, Moeller rates ACHR shares a Buy, although to account for the equity dilution, his price target goes from $13.5 to $13. Still, there's a potential upside of 25% from current levels. (To watch Moeller's track record, click here) 3 other analysts also take a bullish stance on ACHR and with an additional 2 Holds, the stock claims a Moderate Buy consensus rating. The average target clocks in at $11.75, implying shares will post growth of 13% in the months ahead. (See ACHR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
4 days ago
- Business
- Yahoo
Cathie Wood Just Bought Millions in Archer Aviation -- Here's Why
June 14 Ark Invest's Cathie Wood bought a large stake in Archer Aviation (NYSE:ACHR) after the stock slid nearly 15% Friday on a fresh equity sale. According to recent news, Wood added about $40 million worth of ACHR shares across three of her exchange-traded funds. The Ark Innovation ETF (ARKK) led the move with over 2.8 million shares, while Ark Autonomous Technology & Robotics ETF (ARKQ) and Ark Space Exploration & Innovation ETF (ARKX) picked up smaller amounts. Warning! GuruFocus has detected 2 Warning Sign with ACHR. The buying spree followed Archer's announcement of an $850 million direct stock offering priced at $10 per share. Investors reacted to the dilution risk, sending shares lower. Archer, which builds electric vertical takeoff and landing (eVTOL) aircraft, has laid out bold plans to launch air taxi services ahead of the 2028 Summer Olympics in Los Angeles. Separately, Wood's funds cut exposure to the defense sector, selling nearly $2 million worth of Kratos Defense & Security Solutions (NASDAQ:KTOS) stock. The recent executive order from former President Donald Trump, aimed at fast-tracking eVTOL integration, could create tailwinds for companies like Archer. Based on the one year price targets offered by 8 analysts, the average target price for Archer Aviation Inc is $12.31 with a high estimate of $18.00 and a low estimate of $4.50. The average target implies a upside of +23.25% from the current price of $9.99 This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Cathie Wood Just Bought Millions in Archer Aviation -- Here's Why
June 14 Ark Invest's Cathie Wood bought a large stake in Archer Aviation (NYSE:ACHR) after the stock slid nearly 15% Friday on a fresh equity sale. According to recent news, Wood added about $40 million worth of ACHR shares across three of her exchange-traded funds. The Ark Innovation ETF (ARKK) led the move with over 2.8 million shares, while Ark Autonomous Technology & Robotics ETF (ARKQ) and Ark Space Exploration & Innovation ETF (ARKX) picked up smaller amounts. Warning! GuruFocus has detected 2 Warning Sign with ACHR. The buying spree followed Archer's announcement of an $850 million direct stock offering priced at $10 per share. Investors reacted to the dilution risk, sending shares lower. Archer, which builds electric vertical takeoff and landing (eVTOL) aircraft, has laid out bold plans to launch air taxi services ahead of the 2028 Summer Olympics in Los Angeles. Separately, Wood's funds cut exposure to the defense sector, selling nearly $2 million worth of Kratos Defense & Security Solutions (NASDAQ:KTOS) stock. The recent executive order from former President Donald Trump, aimed at fast-tracking eVTOL integration, could create tailwinds for companies like Archer. Based on the one year price targets offered by 8 analysts, the average target price for Archer Aviation Inc is $12.31 with a high estimate of $18.00 and a low estimate of $4.50. The average target implies a upside of +23.25% from the current price of $9.99 This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
