Archer Aviation Shares Plummet Post-Earnings as Investors Favor Joby Aviation

Archer Aviation (ACHR) shares have tumbled more than 45% since late October, closing at $8.18 on November 7 following its third-quarter earnings report. Despite the sell-off, Wall Street maintains a Strong Buy consensus based on seven analyst ratings. The decline reflects a broader market shift away from speculative, cash-burning stocks, as noted by top investor JR Research.

Key hurdles remain for Archer, particularly Federal Aviation Administration certification, which could span several years. The company expects to begin its first Type Inspection Authorization by late 2025, but this marks only the initial phase of a protracted approval process. Meanwhile, five-star investor The Alpha Analyst echoes concerns over the timeline, emphasizing certification as the critical near-term determinant for the stock.

Archer bolstered its liquidity with $650 million in new equity, bringing total reserves above $2 billion. Yet, investor sentiment appears divided, with some shifting focus to competitor Joby Aviation (JOBY) as the urban air mobility sector faces heightened scrutiny.