What goes up must come down is one of the most basic, incontrovertible laws of nature. It also describes the journey of Archer Aviation (NYSE:ACHR)’s share price over the past year.
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There were numerous peaks and valleys throughout 2025, though overall the trend has been a negative one. ACHR’s share price has fallen some 22% during the last twelve months.
That’s not to say that the company isn’t making progress toward its goal of launching an eVTOL (Electric Vertical Take-off and Landing) service in both the U.S. and international markets. The company has agreed to acquire Hawthorne Airport to serve as a “strategic hub” for its future LA air taxi service, extended its range with a 55-mile piloted flight, and conducted test and demonstration flights in Abu Dhabi, among other achievements.
And yet, the company hasn’t received FAA approval for commercial flights in the U.S., meaning that many of its hopes and dreams are reliant on something that isn’t fully under its control.
In addition, the company has yet to report any real revenues. That makes ACHR a proposition that top investor Chris Neiger isn’t ready to wager on.
“Archer’s share price gains over the past few years look far more like investors getting caught up in the ‘what if’ of the eVTOL trend and buying based on the stock’s past momentum, rather than on any solid fundamentals of a growing business,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
While the company expects to begin reporting revenues this year, Neiger emphasizes that these will likely be quite minimal for the foreseeable future. And it’s not just the top-line concerns, cautions the investor, as Archer’s losses are also widening.
Moreover, Neiger isn’t convinced that everything will go swimmingly down the road.
“Finally, on top of all of this, it’s important to remember that Archer is trying to launch a new service in an unproven market. This means investors have no idea whether its services will actually have enough demand to generate significant sales,” adds the investor.
Neiger appreciates that risk is part of any investment, and there’s no such thing as certainty. That being said, this one is simply a bridge too far for him.
“With so many unknowns with Archer right now and the company not having any revenue, buying Archer is a highly speculative move that I believe investors should avoid,” sums up Neiger. (To watch Chris Neiger’s track record, click here)
Wall Street is looking up into the wild blue skies of opportunity, however. With 4 Buys and 2 Holds, ACHR rises to a Strong Buy consensus rating. Its 12-month average price target of $12.40 points to gains of greater than 70%. (See ACHR stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.