Archer Aviation (NYSE: AHR) made an electric vertical lift aircraft called the Midnight. The company is in the process of getting Midnight certified as an active air taxi. It’s an exciting concept and one that could create an entirely new market for the aerospace industry. But investors need to go into this stock with their eyes open. Here’s what you need to know.
Archer Aviation stock hit a high of just over $13 per share by late 2025. We have lost almost half of its value. Not much has changed about the business during this stock drop, which highlights the fact that sentiment and news flow are the main drivers of stock prices right now.
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In fact, deep dives are not new to this aerospace startup. The current downturn is not even the deepest that investors have ever suffered. At one point a few years ago, the stock lost more than 80% of its value. This is not surprising considering that the company is unprofitable and unlikely to be able to make a sustainable profit in the long term as it spends a lot of money to build its business.
That said, Wall Street sentiment can change quickly and dramatically. It’s possible that Archer Aviation’s stock price could move higher once the company lands its first commercial customers. It is hoped that this will happen in 2026 in Abu Dhabi.
However, even that will be one step in a very long journey. So investors should tread carefully even if the stock pulls back in the short term. Note, too, that a 50% drop in price requires a 100% recovery to return to pre-drop price levels. In other words, Archer Aviation’s stock price has a lot of ground to cover. If a stock makes a dramatic increase in price in a short period of time without making any material business improvement, investors should be very careful. Price rallies driven by sentiment tend to burn.
Archer Aviation’s Midnight flight could be a great opportunity. However, the opportunity, if it arises, is really long-term, as it opens up a new way of air travel in and around cities. Most investors should stay on the sidelines here until the company does more than carry its first commercial customer.
Before buying stock in Archer Aviation, consider the following:
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a policy of disclosure.
Is Archer Aviation Stock Going To $13? was first published by The Motley Fool
