Archer Aviation Inc. (ACHR) shares continued their downward drift Wednesday afternoon, extending a selloff that started with last week's earnings report. The electric vertical takeoff and landing company finds itself caught between beating expectations and worrying investors about what comes next.
The Earnings Beat That Wasn't Enough
Archer posted a third-quarter loss of 20 cents per share, which sounds bad until you realize analysts expected a 31-cent loss. But here's the thing: when you're a pre-revenue company burning cash to build flying taxis, beating loss estimates doesn't necessarily make investors feel warm and fuzzy about the future.
What really spooked the market was the company's registered direct offering of 81.25 million shares at $8.00 per share. That's a lot of dilution, and investors wanted to know why.
A $126 Million Airport Bet
Turns out, Archer plans to use the capital to acquire Hawthorne Airport in Los Angeles for $126 million in cash. CEO Adam Goldstein is calling it a "transformative opportunity" to lock down a strategic hub ahead of 2028. The logic makes sense if you're building an air taxi network—you need somewhere to land. But dropping that much cash when you're still working toward commercialization? Wall Street is asking questions.
Timelines Keep Slipping
JP Morgan didn't love the updated timeline either. The investment bank slashed its price target from $10 to $8, pointing to delays in aircraft deliveries and UAE certification, both now pushed to late 2026. When you're in the "prove it" phase of your business model, delays matter.
Adding to the concern: Archer is projecting a fourth-quarter adjusted EBITDA loss of up to $140 million. The path to actually making money keeps getting longer, and investors are getting antsy about the cash burn rate.
Technical Picture Shows Momentum Despite Decline
Market data highlights an interesting divergence. The stock shows a strong Momentum score of 82.53 even as it registers negative price trends across short, medium, and long-term timeframes. Translation: the stock has momentum, just not in the direction shareholders probably want.
Archer Aviation shares were down 3.91% at $8.59 at the time of publication Wednesday, according to market data.
How To Buy ACHR Stock
You can purchase shares directly through a brokerage platform, including fractional shares if you don't want to commit to a full share. Alternatively, you can gain exposure through an exchange traded fund (ETF) that holds the stock, or through a strategy in your 401(k) that invests in mutual funds or other instruments.
Since Archer Aviation operates in the Industrials sector, sector-specific ETFs likely hold shares alongside other liquid and large companies, giving investors broader exposure to industry trends.