Don’t Be Shy! Grab Archer Aviation Stock Before It Takes Flight.


  • Archer Aviation’s (ACHR) current financials certainly aren’t ideal.
  • Archer Aviation has a significant agreement with the Abu Dhabi government and plans high-volume battery pack production.
  • Investors should consider taking a small share position in Archer Aviation stock.
Archer Aviation stock - Don’t Be Shy! Grab Archer Aviation Stock Before It Takes Flight.

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Sometimes, investors might overlook current issues when they’re expecting significant future growth. This is the scenario with Archer Aviation (NYSE:ACHR), a flying-taxi business that has financial faults but could change the way people travel in a few years. So, if you’re not averse to risk, I invite you to consider Archer Aviation stock.

Archer Aviation develops electric vertical takeoff and landing vehicles, which might informally be called flying taxis. It’s been posited that the flying-car market will expand at a 48% compound annual growth rate to $993.56 billion in 2028.

This doesn’t mean that Archer Aviation will turn a profit in the near term, however. There are reasons to envision a bright future for Archer Aviation and, in the long run, for Archer Aviation stock.

You Probably Won’t Like Archer Aviation’s Financial Facts

If you’re a stickler for profitability, you’ll probably have to hold your nose and maybe even close your eyes right now. That’s because I’m about to reveal some financial facts that don’t look good for Archer Aviation.

Here’s a side-by-side comparison of Archer Aviation’s financial statistics from the fourth quarter of 2023, followed by the first quarter of 2024:

  • GAAP operating expenses: $107.3 million in Q4 2023, $142.2 million in Q1 2024
  • Non-GAAP adjusted EBITDA: -$85.2 million in Q4 2023, -$86.8 million in Q1 2024
  • GAAP net earnings loss: $109.1 million in Q4 2023, $116.5 million in Q1 2024
  • GAAP cash and cash equivalents: $464.6 million in Q4 2023, $405.8 million in Q1 2024

It’s easy to discern that there’s financial deterioration across the board. Sometimes, a startup business has to lose money now in order to make money later.

This is to be expected, to a certain extent, with an industry pioneer like Archer Aviation. However, it means that Archer Aviation’s investors may have to tolerate some near-term pain for long-term gains.

A Double-Shot of Good News for Archer Aviation

Not all the financial news is negative for Archer Aviation, though. Indeed, the company is set to receive a substantial capital infusion in Abu Dhabi, the capital of the United Arab Emirates.

Reportedly, Archer Aviation signed a multi-hundred-million-dollar agreement with the government of Abu Dhabi to accelerate air-taxi operations across the UAE. This agreement, according to Archer Aviation CEO Adam Goldstein, will help the company launch its “electric air taxi service in the UAE as soon as late 2025.”

Meanwhile, back in California, Archer Aviation just completed the build-out of the company’s high-volume electric-aircraft battery-pack manufacturing line.

Archer Aviation expects the “final phase of the facility” to be able to produce “up to 15,000 battery packs per year.” Thus, the company appears to be making significant headway in advancing multiple areas of flying-vehicle technology.       

Archer Aviation Stock: Think Big, but Stay Small

There’s no denying that Archer Aviation currently has less-than-ideal financials. Consequently, I can’t recommend loading your portfolio up with Archer Aviation shares. Instead, consider just taking a small position.

Archer Aviation has game-changer potential. The company has a lucrative agreement in the UAE. Plus, Archer Aviation is preparing to manufacture electric-aircraft battery packs at a high volume.

Therefore, today’s a great day to pick up a few Archer Aviation stock shares. I’m sticking to my previously suggested price target of $7, though patience will be required.

On the date of publication, David Moadel did not have (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 Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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