Archer Aviation (NYSE:ACHR) has been a standout electric vertical take-off and landing (eVTOL) company in 2023 and Cathie Wood’s Ark Invest has certainly taken notice. In fact, Ark Invest has purchased shares of ACHR stock more days this month than days it has not purchased shares. These shares have been purchased through the ARK Innovation ETF (NYSEMKT:ARKK), the ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and the ARK Space Exploration & Innovation ETF (BATS:ARKX).
As of Oct. 19, Wood has acquired 1.27 million shares of Archer this month. According to Cathie’s Ark, this has brought Ark Invest’s total ownership to 23.34 million shares. Still, ACHR is the 24th largest holding among all Ark exchange-traded funds (ETFs) with just a 1.07% allocation.
ACHR Stock: Cathie Wood Has Purchased 1.27 Million Shares This Month
Despite the consistent purchases, Archer still carries a relatively low weighting in Wood’s ETFs. In comparison, Tesla (NASDAQ:TSLA) is the largest holding among the ETFs with a weight of 6.83%. This may be indicative of Wood having an allocation in a startup company that still carries uncertainty. If the company takes off, then fantastic. But if ACHR stock ends up being a dud, then Wood will only lose about 1% of her portfolio.
This could very well be the case, as Archer has yet to start piloted “for credit” testing for its Midnight aircraft. This type of testing is expected to begin early next year. In addition, Archer did not report any revenue for the first and second quarter.
During Q3, Archer received “nearly $1M” from the U.S. Air Force pursuant to contracts valued at up to $142 million. The payment was in exchange for a mobile flight simulator that seeks to help the U.S. Air Force understand the ins and outs of Archer’s “civilian use eVTOL aircraft platform.” Archer confirmed yesterday that it will report its third-quarter earnings on Nov. 9 after the market close.
In terms of eVTOL stocks, Wood also owns a stake in Joby Aviation (NYSE:JOBY), although it carries a much smaller weight than Archer. JOBY stock is the 69th largest position among all Ark ETFs with a 0.18% portfolio weight. This seems to convey that Wood has more confidence in Archer than Joby.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
