After getting cut in half from its October 6 peak, Archer Aviation (NYSE:ACHR) stock has started showing signs of life again. Shares of the electric air taxi developer have climbed 31% since bottoming on March 30, giving investors another reminder that sentiment can swing wildly when a company is selling a long-term vision rather than a functioning profit machine.
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Forget margin or options. Here's how the pros trade ACHRIndeed, Archer remains almost entirely pre-revenue while losses continue mounting quarter after quarter. Investors buying ACHR today are not paying for a mature aerospace company producing dependable cash flow. Instead, they are betting that Archer can eventually turn its air taxi ambitions into a real commercial business, making regulatory progress, partnership announcements, and liquidity levels far more important than near-term earnings metrics.
To Archer’s credit, management has continued delivering meaningful progress across several fronts during recent months. The Federal Aviation Administration confirmed final acceptance of 100% of Midnight’s Means of Compliance, marking another step forward in the certification process for Archer’s aircraft program. The company has also continued building commercial relationships through agreements that include United Airlines, while ending 2025 with close to $2 billion in liquidity.
All of that arrives ahead of Archer’s Q1 report due Monday, May 11, after the closing bell. Investors will likely pay close attention to updates surrounding certification progress, manufacturing timelines, commercial rollout plans, cash burn trends, and management’s outlook for getting Midnight into service.
So, is it time to buy ACHR shares ahead of Monday’s Q1 update? And is this latest rally the beginning of a more sustainable recovery, or just another sentiment-driven swing in a stock that has already proven capable of dramatic moves in both directions?
Top investor Adam Spatacco, who ranks among the top 3% of stock pros on TipRanks, is still not convinced ACHR offers an attractive enough risk-reward profile at current levels.
“While Archer’s current stock price makes the moonshot bet nominally cheaper, only those who fully grasp the execution challenges should consider adding shares,” Spatacco cautioned.
According to Spatacco, ACHR’s wild price swings reflect how much investor expectations have evolved. The market is no longer rewarding ambitious presentations and futuristic promises alone. Instead, investors want evidence that Archer can execute in the real world through tighter cost control, manufacturing progress, certification milestones, and eventually actual passenger operations.
And that pathway is not without its obstacles. Thus far, Spatacco notes that the road has been littered with both manufacturing worries and equity-diluting capital raises, among other issues. That leaves ACHR’s share price very exposed.
“Narratives around Archer constantly change,” adds Spatacco. “Whenever one headline casts the company as a leading eVTOL contender nearing commercial launch, another swiftly emerges portraying it as a cash-burning, pre-revenue story.”
The tension between great expectations and real-world results doesn’t give Spatacco much confidence to make ACHR anything more than “a speculative, small-position idea at best.”
“While the sky may be the limit, the route to cruise control is still turbulent,” concludes Spatacco. (To watch Spatacco’s track record, click here)
Wall Street, however, is ready to take that bet. With 5 Buys and 1 Hold, ACHR bursts out to a Strong Buy consensus rating. Its 12-month average price target of $13.20 implies ~104% upside from current levels. (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.