Archer Aviation (NYSE: ACHR) makes an electric vertical lift aircraft called Midnight. The company is in the process of getting Midnight approved as an effective air taxi. It is an exciting concept and could create an entirely new market within the aerospace industry. But investors need to go into this stock with their eyes wide open. Here’s what you need to know.
Archer Aviation’s stock hit an all-time high of just over $13 per share in late 2025. It has since lost around half of its value. Not a lot has changed about the business during this stock downturn, which highlights the fact that emotions and news flow are the key drivers of the stock price right now.
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In fact, deep drawdowns aren’t new for this upstart aerospace business. The current drop isn’t even the deepest one investors have suffered. At one point a few years ago, the stock lost over 80% of its value. This is hardly surprising given that the company is unprofitable and unlikely to become sustainably profitable for a while longer as it spends heavily to build its business.
That said, Wall Street’s emotions can swing quickly and dramatically. It is entirely possible that Archer Aviation’s stock price could rebound toward its all-time highs when the company carries its first commercial customers. The hope is that this will take place in 2026 in Abu Dhabi.
However, even that will just be one step in a much longer journey. So investors should probably tread with caution even if the stock rebounds in the short term. Note, too, that a 50% price decline 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 the stock makes a dramatic price increase like that in a short period without making material business developments, investors should probably be extra cautious. Emotionally driven price rallies often flame out.
Archer Aviation’s Midnight aircraft could be a huge opportunity. However, the opportunity, if it pans out, is really long-term, as it opens a new mode of air travel in and around cities. Most investors should probably stay on the sidelines here until the company has done more than just carry its first commercial customer.
