Sep. 22, 2025 at 4:03 PM ET6 min read

Why Archer Aviation Shares Plunged 16%

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Archer Aviation Inc.’s stocks have been trading down by -3.4 percent due to prevalent market concerns.

Analysis of Recent Market Movements

  • Grizzly Research suggests shorting Archer Aviation due to essential loopholes and concerns about the certifiability of its Midnight aircraft in contrast with Joby Aviation.
  • A report claims Archer may be “Nikola of the skies,” implying concerns of potential overpromises and under-delivery in technology and output.
  • Despite the bullish analyst perspectives on Archer Aviation Inc.’s (ACHR) potential, recent pessimism in earnings estimates led to a Zacks Rank reduction.

Candlestick Chart

Live Update At 16:02:49 EST: On Monday, September 22, 2025 Archer Aviation Inc. stock [NYSE: ACHR] is trending down by -3.4%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Archer Aviation’s Financial Performance: A Quick Glimpse

As Tim Bohen, lead trainer with StocksToTrade says, “I focus on momentum that’s visible right now. Speculation on future moves is outside my playbook.” This perspective is invaluable for traders looking to make informed decisions in the fast-paced world of trading. By concentrating on the current trends and tangible data, traders can navigate the markets with a clearer understanding and reduce the risk associated with predicting future movements. This approach emphasizes the importance of staying grounded in the present momentum rather than getting caught up in unpredictable forecasts.

Archer Aviation’s financial backdrop took a nosedive recently, resulting in a ripple effect that greatly impacted the perception of its stock value. For the quarter ending on Jun 30, 2025, the company reported staggering losses. Their EBITDA stood at a negative $171.3M, and a net income from continuing operations reached a negative $206M. Simultaneously, an elevated free cash outflow of $127.5M was recorded.

While revenue figures might appear less daunting, the company’s efforts to balance ongoing investments resulted in negating cash positions. A return on assets dipping 54.74% exemplified the existing challenges within the company’s financial strategy. However, the cash position at $1.72B provided a slight cushion against the stark negatives.

More Breaking News

The current trajectory conveyed Archer’s battle with the hurdles in certifying its futuristic aircraft. Whether those challenges will push the company toward innovation or struggling losses remains a hot topic. Despite high valuations with a price-to-book ratio of 3.78, positivity still lingers around strong liquidity markers indicated by a wholesome current ratio of 22.3.

The Drama Behind Archer’s Stock Price Dip

Recent assertions have shaken the very foundation of confidence around Archer’s stock. Notably, a concerning research sentiment by Grizzly Research drew parallels between Archer Aviation and Nikola—a company previously known for unfulfilled promises. The implications here are critical, as lingering doubts question Archer’s ability to deliver certifiable eVTOL aircraft within its timeline while prioritizing style over substance.

Moreover, lukewarm attitudes, at best, from industry analysts at Zack’s implied an overvaluation in Archer’s position, mirroring similar trends with peers like Joby Aviation. Regulatory dynamics appeared not only as a hurdle but also as a monumental endeavor for Archer. Without a regulatory foothold, their journey towards commercial eVTOL products seems tenuous at this time.

Unraveling the Stock Performance Puzzle

When observing recent stock closure dips, it becomes apparent that Archer is wrestling with unprecedented speculative motives. In the recent market days, closing prices saw fluctuations from an optimistic $9.86 to a sobering $9.55. Such outcomes reflect the market’s pulse on the speculative nature of Archer’s endeavors in the airy realm of electric vertical take-off and landing (eVTOL) aircraft.

Archer’s journey is not without its spikes, but recent days mirror a decline mirroring intense scrutiny. An influx of speculative interest showed a firm standing at open doors, but by the close, sentiments went astray.

While skepticism centered around certifiability, the restorative spark is Archer’s approach to innovation conformity. The clash with critic insights obliges Archer to redefine, perhaps expedite, transparency with technological milestones, softening skeptic stances.

Overall, the investing community holds its breath, waiting for Archer’s flights, not just speculative, but firm touch-downs in tangible advancements.

Concluding Thoughts

With volatility reigning over the eVTOL landscape, Archer Aviation’s standing in the industry face taxes of fluctuating credulity and trader anxiety. Even while keeping pockets hefty with liquidity avenues, the future certifiability and productive outcomes remain vital enigmas to solve.

Archer’s eventual forward thrust depends heavily on overcoming the raised skepticism and delivering certifiable aircraft, potentially transforming critics into believers. As Tim Bohen, lead trainer with StocksToTrade says, “Time and experience have taught me that missed opportunities are part of the game. There’s always another setup around the corner.” Drawing inspiration from this mindset, Archer aims to position itself strategically for future trading prospects. Bridging the chasm from speculation to certainty, Archer stands on the brink of redefining market stories with on-street operational eVTOL aircraft. If realized, Archer not only combats doubts but might indeed allure fresh trader confidence in winds of triumph, yet it’s a narrative undetermined as of now.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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