While the sky might be the limit for Archer Aviation (NYSE:ACHR), for the past few months the eVTOL manufacturer’s stock hasn’t been flying high. Since hitting a 52-week peak in mid-October, the share price has lost roughly half of its value.
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New trading tool for ACHR bullsMuch of the worries surrounding the pre-revenue company revolve around Archer’s uncertain flightpath. Beyond the regulatory hurdles the company needs to clear prior to ferrying commercial passengers, a series of dilutive capital raises – the last, a $650 million equity raise announced at the same time as its Q3 2025 earnings release – have left investors none too pleased.
Now, a new wrench is mucking up the gears, following a biting critique from Culper Research. Among other allegations made by the short-selling firm, Culper is accusing Archer of not engaging in a single ground or air test for the past three months. The social media post hit like a stone, dropping ACHR down another few notches.
Still, the company is playing in what could become a very lucrative sandbox. Morgan Stanley, for instance, has estimated that the low-altitude market could be worth up to $9 trillion by 2050.
Archer has also worked to build credibility through strategic partnerships with established aviation players in the U.S. and internationally, helping to keep enthusiasm alive despite the volatility.
Yet, top investor Adam Spatacco is choosing to stay on the sidelines for now, citing risks that continue to cloud the company’s near-term outlook.
“While Archer’s ability to attract big tech and the military is exciting, the company hasn’t made a ton of progress penetrating its multitrillion-dollar opportunity,” explains the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
Spatacco acknowledges that ACHR is a tough one to assess, especially given that it has yet to enjoy any measurable sales. He points out that the last time Archer shone some light on its sales figures was over a year ago, when it posted a backlog of more than $6 billion.
That’s not the same as cash in the bank, however, the investor acknowledges.
What seems to be driving ACHR’s valuation is the narrative spinning around the company, both for the better and for the worse. Spatacco argues that announcements of collaborations with a new commercial partner or exciting tech company causes a surge of retail and day traders to snap up shares of ACHR.
“My point to all of this is that investing in Archer feels more aligned with owning equity in a speculative start-up rather than a durable business with predictable cash flow,” adds Spatacco.
Questions such as aircraft delivery, order payment, and recognizable revenues have yet to be answered, leaving too much uncertainty for Spatacco. The investor predicts things will fall farther before a potential recovery beckons.
“I’d pass on owning Archer stock at the moment,” concludes Spatacco. (To watch Adam Spatacco’s track record, click here)
Wall Street’s coverage has been relatively quiet lately, with just 3 analysts weighing in on ACHR over the past quarter. Still, the outlook tilts constructive: 2 analysts rate the stock a Buy and one recommends Hold, giving Archer a Moderate Buy consensus. With a 12-month average price target of $11.50, the analysts see potential upside of ~70% from current levels. (See ACHR stock forecast)
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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.