After flying high for large chunks of 2025, Archer Aviation (NYSE:ACHR) is ending the year on a bit of a down note. The company’s share price has lost almost 40% of its value since early October, as Archer’s flight path to profits has hit some turbulence.
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The market wasn’t thrilled with Archer’s $650 million in new equity capital in November, for one thing. Though it helped shore up the company’s liquidity – bringing it to $2 billion – it was also an uncomfortable reminder that Archer is spending quite a bit of money.
That being said, as the new year beckons, Archer recently posted on social media that it has officially applied to launch air taxi services in 2026 under the White House’s eVTOL Integration Program “as soon as next year.”
So, could next year be the year that Archer Aviation’s share price soars upwards into the stratosphere? Top investor Will Ebiefung isn’t quite ready to get caught up in all the excitement.
“Investors should tread carefully with these types of companies because at this point, success or failure depends on factors outside management’s control,” explains the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
That’s not to say that Ebiefung is all doom and gloom when it comes to ACHR. In fact, he readily acknowledges some good news, such as J.P. Morgan’s estimate that the eVTOL market could be worth some $1 trillion by 2040.
Moreover, he appreciates Archer’s multipronged strategy of both pursuing manufacturing and the the operation of air taxi networks both at home and abroad.
“This vertical integration strategy could dramatically expand Archer Aviation’s potential addressable market while also securing large customer deals,” adds Ebiefung.
And yet, for now, that’s not enough for Ebiefung, who can’t quite shake his worries about the company’s regulatory pathway and fears of future dilution.
“While important regulatory milestones could be reached in 2026, that’s still a big if,” cautions Ebiefung. “It makes sense to wait for more information before considering a position in the stock.” (To watch Will Ebiefung’s track record, click here)
Wall Street offers a bit more of an optimistic take. With 4 Buys and 2 Holds, ACHR enjoys a Moderate Buy consensus rating. Its 12-month average price target of $12.17 would translate into gains of almost 50% in the year ahead. (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.