Archer Aviation (ACHR) remains a top name in the emerging eVTOL market, consistently drawing investor attention. With its Midnight aircraft approaching commercial readiness, the company is targeting deployment in Abu Dhabi later this year and aiming to expand U.S. operations shortly after. But as with most early-stage growth stories, the numbers matter. That’s why financial publications often stack a stock like ACHR side by side with the SPDR S&P 500 ETF (SPY) – to measure whether it’s delivering meaningful performance relative to the broader market.
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The S&P 500 is a standard benchmark not only for market sentiment but also for gauging whether a company’s returns are driven by unique execution or simply riding a rising tide. ACHR has outpaced the index over the past 12 months, but performance alone doesn’t tell the full story without context.
Archer’s Financials
ACHR carries a market cap of around $6.6 billion and held $1.03 billion in cash at the end of Q1 2025, with another $400 million expected from Stellantis (STLA). That war chest gives Archer flexibility, but not immunity from losses. The company reported a $109 million adjusted EBITDA loss last quarter and burned through $451.4 million in free cash flow over the past year. GAAP operating expenses increased to $144 million, primarily due to higher headcount and materials associated with Midnight. R&D spend continues to climb, signaling Archer’s focus on innovation, while general and administrative costs remain uneven.
Revenue remains at zero. Projections suggest $12 million in 2025 and $144 million in 2026, but even then, ACHR trades at more than 40x forward sales. The income statement shows trailing EBITDA at minus $504.7 million, net income at minus $513.7 million, and reliance on financing. Over the past year, the company raised $764 million through share issuances, highlighting dilution risk.
Technical indicators are more supportive. The stock trades above its 50- and 200-day moving averages, and MACD is trending positive. On the strategic side, partnerships with Anduril and Palantir (PLTR) expand its reach into defense and AI, while piloted flight testing and scaled production remain in focus.
Conclusion
By contrast, $SPY offers diversified exposure to cash-flow-positive, earnings-generating companies with lower volatility and regular dividends. It doesn’t promise a revolution in urban air travel, but it does provide steady returns.
This is why performance comparisons matter. A stock beating the S&P 500 over a short timeframe isn’t necessarily a better investment. ACHR may have upside, but investors should evaluate whether its gains are based on strong fundamentals or speculative enthusiasm. Matching or beating SPY means little without the foundation to sustain it.
Is Archer Aviation Stock a Good Buy?
Archer Aviation scores a Moderate Buy rating based on 6 analysts. The average ACHR stock price target is $11.75, implying a 12.23% upside.
