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ARK added $3.35 million of Archer while selling about $6.5 million of Palantir. Summary

ARK bought 575,700 Archer shares worth about $3.35 million

Archer Aviation Inc. (ACHR, Financials), inventor of electric aircraft and builder of its Midnight air taxi, just got another big vote of confidence from Cathie Wood.

ARK Invest bought 575,700 shares of Archer on Sept. 8 through its flagship ARK Innovation ETF, a position valued at nearly $3.35 million based on Tuesday's close.

The buy comes as Archer continues to push Midnight toward commercial operations. The business just completed a piloted round-trip flight between Salinas and Hollister, California.

At the same time, ARK was moving in the other direction with Palantir. The firm sold 38,395 shares of the AI software startup worth around $6.5 million. Shares of Palantir slid 2.3% Tuesday.

ARK has profited from Palantir's good run and the selling looks more like portfolio trimming than a clear change to its long-term AI stance. That disparity is what makes the deals interesting.

Archer is still an early-stage aerospace bet with a lot of execution risk, while Palantir has already produced big returns and carries considerably larger expectations.

What investors should watch next: Will Archer's flight-test progress translate into regulatory approvals and commercial operations the milestones that would justify ARK's ongoing buying?

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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SAN JOSE, Calif.--(BUSINESS WIRE)--Archer Aviation Inc. (NYSE: ACHR) today announced the completion of Midnight's city-to-city roundtrip flight between Salinas and Hollister, CA - the first stop on the company's ‘No Roads' flight tour. Midnight completed the round trip between Salinas Municipal Airport and Hollister Municipal Airport in roughly 12 minutes each way, which by comparison can each take ~40 minutes or more by car. The all-electric aircraft reached speeds of 125 mph, cruised at 3,550.

Archer Aviation (ACHR +2.10%) went public by merging with special purpose acquisition company (SPAC) Atlas Crest Investments on Sept. 16, 2021. The stock saw many periods of volatile swings following its public debut, but it managed to hit a lifetime high of $14.62 per share in October 2025 thanks to new partnerships, patent acquisitions, and a successful demonstration of its Midnight electric vertical take-off and landing (eVTOL) aircraft. Unfortunately for shareholders, the stock has lost significant altitude since that point.

Archer Aviation's share price has fallen roughly 61% from its post-SPAC-merger high, and it's currently trading at under $6 per share. With the company's share price trading in that range, is the next-gen aviation specialist likely to pursue a reverse stock split?

Image source: Archer Aviation.

Will Archer Aviation carry out a reverse stock split? Companies typically carry out reverse stock splits when their share prices drop below the minimum threshold required to continue trading on either the Nasdaq or the New York Stock Exchange. If a stock trades below $1 per share for 30 consecutive days, it can be delisted from these exchanges. Delisting is almost always a negative valuation event, and companies will often opt for a reverse stock split to prevent it from taking place.

Even after some big valuation pullbacks, there is currently no immediate need for Archer Aviation to do a reverse stock split, as it is still well above the level required to continue trading on the New York Stock Exchange. While companies also sometimes opt to do a reverse split well in advance of potentially hitting the delisting danger zone because having a low pure-dollar share price can have psychological impacts, there's currently no reason to think that Archer will make this move.

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Notably, the company's stock is poised for another major round of dilution, as it will issue new shares to Boeing in exchange for Boeing's Wisk Aero, Insitu, and SkyGrid subsidiaries. The deal will give Boeing a 16.5% stake in Archer, and the aerospace and defense giant will have the opportunity to purchase an additional $200 million in shares through warrants. On the other hand, the market actually had a very positive reaction to this deal -- bidding up Archer stock even though the acquisition will result in heavy stock dilution.

Archer is still generating relatively little revenue and posting sizable losses, and it's likely the company will continue to rely on new stock sales to fund its operations. Devaluation through dilution and potential sell-offs in response to underwhelming business performance could push the company's share price significantly below current levels, but a reverse split appears unlikely right now. The stock traded as low as $1.62 per share in December 2022, and the company didn't do a reverse split then -- so it probably won't do one in the near future unless its share price collapses.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.

With shares down 61% from its 52-week high, it's a good time to look at Archer Aviation (ACHR -0.87%) stock. And here's an interesting angle: Its second-quarter revenue was $5 million, and none of it came from carrying passengers. Most of it came from fueling, ground handling, and leasing space at Hawthorne Airport in Los Angeles, which Archer operates. A year earlier, revenue was zero.

In other words, a market value of about $4.4 billion rests on an air taxi service that hasn't started.

My prediction: Midnight -- Archer's electric vertical takeoff and landing (eVTOL) aircraft -- carries its first paying passenger in the United States before 2028.

Image source: Archer Aviation.

Certification is in its final phaseArcher describes the FAA's route to a type certificate as a four-phase process, and it says it's now in the last one. The company announced in May that it had become the first eVTOL maker to close Phase 3. Phase 4 is where compliance with the FAA's airworthiness requirements gets demonstrated through formal testing. It's the step that ends with a type certificate.

And in July, a piloted Midnight flew a round trip between Salinas Municipal Airport and Monterey Regional Airport, each leg taking about nine minutes -- the company's first intercity flights in California.

Archer was also selected as an air taxi partner in three winning applications covering eight states under the White House's eVTOL Integration Pilot Program (eIPP).

"[W]e plan to begin flying in the Los Angeles area based out of Hawthorne Airport, and subsequently commence operations under the White House's eIPP later this year in Texas," CEO Adam Goldstein said in the company's second-quarter shareholder letter.

There's a hard date, too. Archer is the Official Air Taxi Provider of the LA28 Olympic Games in the summer of 2028, a role that would be hard to fill without passenger service running by then.

Can the money reach the date?The bigger threat to the date is money. Archer's net loss was $263.2 million in the second quarter, up about 28% year over year and up from $217.7 million in the first quarter. Management guided to a third-quarter adjusted EBITDA loss of $170 million to $200 million, after a $177.1 million loss on that basis in the second quarter. (Adjusted EBITDA, the profit measure Archer guides on, excludes items such as stock-based compensation.) The losses are widening as flight testing, certification work, and production spending all ramp.

The balance sheet can absorb it for a while. Archer ended June with about $1.6 billion of cash and short-term investments, down about $215 million for the quarter. At that pace of cash use, the money covers about seven more quarters. That clock runs into 2028.

Of course, Archer also agreed in August to buy three subsidiaries from Boeing, paying in stock and warrants, with closing expected by year-end. Integration is rarely free, and more stock sales seem likely.

But I don't think the prediction hinges on raising more money -- the cash already on hand can carry Archer to a first paying flight.

The UAE could come firstNotably, the first fare may not be American. In May, the United Arab Emirates' aviation regulator moved Midnight into a Restricted Type Certificate program, a streamlined path that allows limited commercial operations there. Service is planned in Abu Dhabi, so Archer's first paying passenger anywhere could board overseas, possibly before the FAA finishes its work.

That's why the call is scoped to the United States. After all, a fare in Abu Dhabi would validate the aircraft. But the U.S. path runs through the FAA, and the home market is the one the investment case rests on.

The honest risk is the schedule. Archer said with its fourth-quarter report that it was targeting its first passenger-carrying flights in 2026, and a target is not a schedule -- Archer still has to fly the tests, and the FAA has to sign off.

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But the call doesn't need 2026 to hold. Between management's late-2026 plans and the end of 2027 sits a year of slack.

So, will a paying passenger board a Midnight in the U.S. before 2028? I think so. Archer says it closed Phase 3 of the FAA's process before any other eVTOL company. The pilot program gives it somewhere to fly this year, and the balance sheet reaches the date without help.

The prediction and the stock are different bets, though. At about $4.4 billion, Archer is still valued on what the service could become, and the losses are widening while shareholders wait.

I'd want to see what a paying route earns before buying shares.

Let's cut to the chase: If you have an appetite for risk, and you can stomach near-term volatility, Archer Aviation (ACHR -0.87%) at less than $6 a share might be your next best buy.

That's not because the company is safe, secure, or stable. Quite the contrary: This maker of eVTOL (electric vertical take-off and landing) aircraft is burning through millions of dollars each quarter, generates no meaningful revenue, and still hasn't secured the FAA certification it needs to commercialize its air taxi operations in the United States.

That's the risk. Here's the opportunity.

Image source: Archer Aviation.

Archer is no longer just developing an air taxi, Midnight, for city travel. It is also developing aircraft for defense and commercial purposes. Indeed, its recent push into these segments -- through the autonomous platform it has co-developed with Anduril -- could give it a source of revenue before paying passengers ever step into a fully certified Midnight vehicle.

In the same vein, a pending acquisition of Boeing's (BA +0.83%) Insitu would take this defense business even further. Insitu, essentially a drone business, already generates $200 million a year. That's roughly 29 times more than Archer's trailing-12-month revenue of about $7 million.

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Insitu is great, but I'm even more interested in Wisk, another Boeing business that Archer plans to buy. Wisk has spent years developing autonomous eVTOLs, and Archer could eventually integrate that technology into the Midnight model. If Midnight were to earn authorization to fly as a fully autonomous vehicle, Archer's air taxi business would eliminate a major recurring expense: training and paying pilots.

Granted, many risks still surround Archer -- FAA type certification and manufacturing eVTOLs at scale, just to name two. But even though the risks are the same, the potential rewards are starting to look bigger. Today's price for Archer stock could look awfully cheap in retrospect if the company grows into the broader aerospace business it is now trying to become.

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Eric Lentell, Chief Strategy Officer at Archer Aviation Inc. (ACHR +1.89%), sold 100,000 shares of Class A Common Stock on August 20, 2026 according to the SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$631,000Shares sold~100,000Post-transaction shares (directly held)85,011Post-transaction value$517,716.99Transaction value based on SEC Form 4 weighted average sale price ($6.31); post-transaction value based on August 20, 2026 market close ($6.09).

Key questionsWhat prompted this disposition of Class A Common Stock?
The sale was conducted under a Rule 10b5-1 trading plan adopted by the Chief Strategy Officer on May 22, 2026, which allows corporate insiders to establish pre-planned transaction schedules.How does this impact the officer's overall equity exposure?
While this transaction reduced his direct holdings by 54%, Lentell maintains a direct position of 85,011 shares and holds restricted stock units (RSUs) that remain subject to future service-based vesting schedules.What has been the recent performance of the stock?
Shares of Archer Aviation have recorded a 34% decline over the trailing 12-month period as of the transaction date on August 20, 2026.Company OverviewMetricValueShare Price (as of market close 2026-08-20)$6.09Market Capitalization$4.6 billionRevenue (TTM)$6.9 millionNet Income (TTM)-$799.7 millionCompany SnapshotArcher Aviation develops, manufactures, and operates electric vertical takeoff and landing (eVTOL) aircraft designed for passenger transport in urban air mobility applications.The company generates revenue through aircraft manufacturing and operational services, with a business model centered on commercializing advanced eVTOL technology for point-to-point urban transportation.Archer targets commercial operators, urban transportation networks, and enterprise customers seeking sustainable alternatives to traditional ground-based transit in metropolitan areas.Archer Aviation is a pre-revenue aerospace company focused on developing next-generation urban air mobility solutions through electric vertical takeoff and landing aircraft technology. With a market cap of $4.6 billion and based in the San Jose area, the company is positioned at the forefront of the emerging eVTOL sector.

The organization's competitive strategy emphasizes advanced aircraft design, regulatory compliance, and operational readiness to capture market share in the nascent urban air mobility industry.

What this transaction means for investorsChief Strategy Officer Eric Lentell's August 20 sale of Archer Aviation stock represented more than half his direct holdings at the time. That's an enormous chunk, although several factors suggest this is not necessarily a red flag for investors.

The timing was non-discretionary, since it was executed as part of a pre-established Rule 10b5-1 plan. Insiders frequently adopt such plans to sell shares at predetermined times to avoid concerns around trading on non-public information.

Moreover, in addition to Lentell's remaining direct equity stake of 85,011 shares, he holds 435,687 RSUs. This is a substantial sum, and ensures his continued alignment with shareholder interests.

Archer Aviation stock has fallen 34% over the trailing 12 months, as of Lentell's transaction date, due to the company's ongoing cash burn amid a slow revenue ramp up. In the second quarter, Archer produced sales of $5 million compared to no revenue in the prior year. However, its Q2 net loss totaled $263 million.

That said, the company made some acquisitions that are set to add over $200 million in annual revenue to its coffers.

Robert Izquierdo has positions in Archer Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The air taxi maker still lacks certification for its eVTOL. Its stock has slumped sharply from earlier highs.

Archer Aviation gains 14.9% in a month as commercialization, vertiport expansion and partnerships advance, but losses and execution risks remain.

Right now, Archer Aviation (ACHR -3.04%) is a money-losing start-up. Only the most aggressive investors should even consider owning the stock. But the company is making some important strategic decisions as it looks to take a leading position in the electric vertical take-off and landing (eVTOL) vehicle space. One big move was to gain control of Hawthorne Airport in California. Here's what you need to know.

Electric vertical take-off and landing: Air taxi The acronym eVTOL is a mouthful, but it makes more sense when you consider what the purpose of these vehicles really is. They are meant to carry small loads, like a package or a couple of people, over short distances. Think of them as air-taxis, quickly flying over the traffic in congested cities. eVTOL's could revolutionize the aerospace industry.

Image source: Getty Images.

It is clearly very important for Archer Aviation to get its aircraft, known as Midnight, approved for commercial use as soon as possible. That said, it isn't the only company working on an eVTOL vehicle. So time really is of the essence. And the company's move to take control of Hawthorne Airport is a big plus on this front. It gives the company a base from which to test Midnight.

The long-term picture for Hawthorne is far more interesting That's the near-term benefit. The long-term benefit of controlling this airport is probably more important. Hawthorne is centrally located in California near major cities, making it a potential hub for the air taxi service Archer Aviation hopes to launch in the state. That's obviously a positive, but it's not the end of the story.

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Other companies are likely to try to set up air taxi services in California, too. Controlling the well-located Hawthorne Airport could make Archer Aviation a vital service provider to the industry, allowing it to collect fees from its competitors. That's an additional revenue stream and one that would give Archer Aviation a solid, recurring income foundation as it looks to expand its own air taxi service into new markets.

The key to Archer Aviation's success is still Midnight To be fair, controlling Hawthorne Airport probably isn't nearly as attractive if Archer Aviation doesn't get its Midnight aircraft approved for commercial use. So Midnight is still the linchpin to the whole story, and most investors should probably watch from the sidelines until Midnight is approved. However, Hawthorne makes that story much more interesting, and once Midnight is approved, it could be equally important to the company's long-term success.

Shares of Archer Aviation Inc. (ACHR - Free Report) have gained 23.7% over the past four weeks to close the last trading session at $5.96, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $10.28 indicates a potential upside of 72.5%.

The mean estimate comprises 10 short-term price targets with a standard deviation of $3.77. While the lowest estimate of $4.50 indicates a 24.5% decline from the current price level, the most optimistic analyst expects the stock to surge 202% to reach $18.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in ACHR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why ACHR Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 1.9% over the past month, as three estimates have gone higher compared to no negative revision.

Moreover, ACHR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much ACHR could gain, the direction of price movement it implies does appear to be a good guide.

Are you looking to capitalize on the next frontier of transportation? Comparing Archer Aviation Inc (ACHR -3.04%) and Space Exploration Technologies Corp (SPCX +0.45%) reveals two very different paths toward dominating the skies and beyond.

Archer focuses on short distance urban air mobility with electric vertical takeoff and landing aircraft. SpaceX targets global connectivity and orbital transportation via its massive rocket fleet and satellite constellation. Both represent high risk plays in the evolving aerospace market, though they sit at vastly different stages of commercial maturity and scale.

The case for Archer AviationArcher Aviation develops electric vertical takeoff and landing (eVTOL) aircraft, positioning itself among industrial stocks focused on urban air taxi services and defense applications. The company maintains a conditional purchase agreement with United Airlines for its Midnight aircraft, contingent on FAA certification and final terms. It also collaborates with the U.S. Air Force, Stellantis (STLA +2.65%) and Boeing Co (BA -0.03%), having recently acquired several subsidiaries to bolster its defense segment.

In FY 2025, Archer Aviation reported revenue of $300,000. This early stage revenue was accompanied by a net loss of approximately $618.2 million. This reflects a company still in its pre-commercial phase as it pursues aircraft type and production certification.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.1x. This ratio measures total debt, including short- and long-term obligations, against shareholders' equity, with a lower number indicating less reliance on borrowed money. Free cash flow was negative at $511.7 million, representing the cash remaining after operating and capital spending are covered.

SpaceX builds launch vehicles, spacecraft, and satellite broadband infrastructure, including its Starlink constellation, which serves over 10 million subscribers. The company is currently developing the Starship system to enable transport to orbit, the Moon, and Mars. While it serves a wide variety of government and commercial clients, specific major customer identities are not disclosed in recent filings.

In FY 2025, revenue reached nearly $18.7 billion, an increase of approximately 33% from the $14 billion reported in the previous year. Despite this top-line growth, the company reported a net loss of nearly $5 billion for the fiscal year. This performance reflects the massive capital requirements for building out the global Starlink network and developing next-generation heavy-lift rockets. The net margin, which calculates profit as a percentage of revenue, was a negative 26.4%.

As of its December 2025 balance sheet, the current ratio is approximately 1.4x, indicating the company maintains sufficient short-term assets to cover its immediate liabilities. Free cash flow, calculated as cash flow from operations minus capital expenditures, was about negative $14 billion in FY 2025. The current ratio is approximately 1.4x. Note that stock-based compensation (SBC) accounted for roughly 28.7% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonArcher faces significant risks related to regulatory certification and the evolving FAA framework for air taxi operations. Any delays in flight testing or approval in key markets like Los Angeles could materially harm the business. The company also relies on successfully scaling manufacturing with partners like Stellantis while requiring ongoing capital to fund research.

SpaceX operates in a highly capital intensive industry where launch failures can result in massive financial and reputational losses. The company faces intense competition from established aerospace entities and emerging private launch providers globally. Maintaining its lead in satellite internet also requires constant deployment of new hardware and navigating complex international spectrum regulations.

Valuation comparisonSpaceX appears more traditionally valued based on its massive revenue base, while Archer's extremely high P/S ratio reflects its very early stage of commercial operations. Neither has a forward price-to-earnings ratio because they are not expected to turn a profit in the coming year.

MetricArcher AviationSpace Exploration TechnologiesForward P/En/an/aP/S ratio626x64.5xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Both companies have big aspirations.

Archer Aviation is taking concrete steps to get there. The federal government created the framework last year for real-world testing of eVTOL aircraft, a concrete step toward making Archer's vision a reality. Japan, South Korea, and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for Archer's aircraft to get into the skies, but the notion that the nation's airspace is being regulated in a way that is holding back growth is one that has found favor.

Archer is taking steps to refurbish a small Los Angeles airport, called Hawthorne, for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Management has an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. Future estimates are speculative, but Wall Street analysts see Archer turning its first profit in 2030, with $2.3 billion in revenue. But keep in mind, plenty of things have to go right between now and then.

SpaceX's various businesses intend to leverage the company's core launch capabilities, starting with reusable rockets. The ability to reuse boosters significantly lowers per-launch costs and spreads fixed manufacturing costs across multiple missions. Expectations are that scaling up quickly will happen, with Wall Street analysts projecting $39 billion in sales for fiscal 2026, a much lower net loss of around $1.6 billion, and profitability in 2027.

The lack of free cash flow appears to be crushing; projections indicate free cash flow will be negative $28 billion this year, then jump to negative $67 billion in 2027.

Still, the success of Tesla Inc (TSLA -1.71%) has made founder Elon Musk the richest man in the world and raised expectations that he can make an even greater fortune from SpaceX, as Space Exploration Technologies Corp is known. The business certainly has market support behind it, raising the world's largest IPO, $85.7 billion this year.

Space has a very real business in Starlink, which mitigates the possibility that grander plans won't come to fruition. Meanwhile, the aviation industry has shown there are few competitive moats, and Archer comes at a very high P/S multiple. SpaceX also has a premium P/S ratio, but it appears to be the wiser choice between the two for a long-term investor.

The race to electrify the skies is reaching a fever pitch as Archer Aviation Inc (ACHR -3.65%) and Joby Aviation Inc (JOBY -4.51%) move closer to full commercialization of their vertical-flight technology. Which is the better buy?

Both companies specialize in electric vertical takeoff and landing aircraft, aiming to bypass city traffic with quiet, emission-free air taxis. While they target similar urban markets, their manufacturing approaches and military partnerships set them apart. Investors must decide whether Archer's aggressive acquisition strategy or Joby's integrated operational model offers more potential for a long-term portfolio.

The case for Archer AviationArcher focuses on integrating electric vertical takeoff and landing aircraft into passenger journeys through partnerships with major airline operators, including a conditional agreement with United Airlines Holdings (UAL +0.35%) for up to 500 aircraft. Customer concentration like this adds a layer of risk to the business, especially as Archer integrates new defense operations from its 2026 acquisition of The Boeing Company (BA -1.75%) subsidiaries. In its latest annual report, filed for the period ending Dec. 31, 2025, Archer also noted it is preparing for an upcoming launch in the UAE.

In FY 2025, revenue reached $300,000, which represented a significant shift from the zero revenue reported in the previous two years. However, the company reported a net loss of approximately $618.2 million during the period, reflecting the high costs of research and early stage aircraft development.

As of its December 2025 balance sheet, the so-called current ratio is close to 19.9x, indicating a strong ability to cover short-term debts with liquid assets. The debt-to-equity ratio is roughly 0.1x, which measures total debt against shareholder equity. Free cash flow was negative $511.7 million, and this level of spending is typical for industrial stocks in the pre-revenue phase of aerospace manufacturing.

The case for Joby AviationJoby utilizes a vertically integrated model to control its manufacturing and service delivery, including air charter services via its Blade acquisition. The company maintains strategic partnerships with Toyota Motor Corporation (TM -1.79%) for manufacturing and Delta Air Lines (DAL +0.09%) for premium airport transportation. Joby noted in its latest annual report, filed for the fiscal year ended Jan. 31, 2025, that it also serves the U.S. Department of Defense through autonomous flight demonstrations. To accelerate its market presence, the company operates Blade Urban Air Mobility as a subsidiary and integrates with the rideshare platform of Uber Technologies (UBER +0.62%).

In FY 2025, revenue jumped to nearly $53.4 million, a massive leap from the roughly $136,000 recorded in 2024. This growth was largely driven by its move toward full commercialization and the integration of its aviation service segments. Despite the higher revenue, Joby Aviation reported a net loss of approximately $930 million for the year.

As of its December 2025 balance sheet, the debt-to-equity ratio is 0.0x. This indicates that total debt is minimal relative to shareholders' equity. Free cash flow was negative at nearly $563.8 million, showing the high level of cash used to build out its flight operations.

Risk profile comparisonArcher faces significant hurdles regarding FAA certifications, as any regulatory delay could materially harm the business. The company has a history of losses totaling nearly $2.3 billion and will require substantial new capital to scale its production. There are also operational risks related to its relationship with Stellantis (STLA -3.51%) and the complexity of managing a global supply chain.

Joby is similarly dependent on rigorous FAA approvals for its commercial launch, with any regulatory change posing a threat to its timeline. Financial stability is a concern because the company requires heavy capital expenditure to build its manufacturing infrastructure in Ohio. Joby is also highly concentrated in a small number of metropolitan areas and relies heavily on partners like Uber Technologies for customer access.

Valuation comparisonNeither company has a Forward P/E because they lack positive future earnings estimates, but Joby Aviation looks cheaper on a P/S ratio basis.

MetricArcher AviationJoby AviationForward P/En/an/aP/S ratio668x59xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

In 2025, the U.S. federal government created the framework for real-world testing of eVTOL aircraft, a concrete step toward making Archer's and Joby's visions a reality. Japan, South Korea, and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for either company's aircraft to get into the skies, but the notion that the nation's airspace is being regulated in a way that is holding back growth is one that has found favor.

Archer is taking steps to refurbish a small Los Angeles airport for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Management has an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. It's highly speculative, but Wall Street analysts see Archer turning its first profit in 2030, with $2.3 billion in revenue, but a lot has to go right between now and then.

Joby recently tested its Blade aircraft in New York City across different charging environments and on real-world routes it proposes, such as flying from JFK Airport, on the city's outskirts, into Manhattan. Joby is further along with its manufacturing capabilities, embedding Toyota philosophies throughout its system. Even though it is further along the path to market, analysts don't see Joby turning a profit through 2030, a year in which consensus projects $2.3 billion of revenue and a net loss of around $195 million.

Both Archer and Joby are early stage aircraft businesses with significant risk for potential investors. Joby's business model of flying short, in-demand routes in major cities seems more attainable after its testing in New York City. Its price-to-sales ratio of 59 is high but well below Archer's. If you want to take a flyer on an upstart electric aircraft maker, go with Joby.

AEG, the world's leading sports and live entertainment company, and [url="]Archer Aviation[/url] (NYSE: ACHR) today announced a collaboration to develop downtow

The race for Federal Aviation Administration (FAA) certification won't determine the long-term winner, because Joby Aviation (JOBY -0.66%) and Archer Aviation (ACHR +3.45%) have vastly different business models that will evolve. However, achieving FAA certification will immediately de-risk the stocks and change the investment narrative from "burning cash in risky development" to "investing cash to scale growth" for both companies. Certification matters, and here's what to look out for in the process.

The key number to look out for Given that the FAA won't make a certification decision until each company's electric vertical take-off and landing (eVTOL) aircraft has completed aircraft-level "for credit" testing, investors should look for each company to complete this process 100%. This is the process by which FAA pilots conduct or witness extensive test flights of an eVTOL under a Type Inspection Authorization (TIA). Before achieving TIA, companies must build an FAA-conforming eVTOL and test it with their own pilots.

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If you are wondering who is ahead, Joby is generally considered ahead because it conducted its first FAA-conforming eVTOL flight in early March. Moreover, CEO JoeBen Bevirt outlined that "We now have five of our electric air taxis in the air, including our first FAA-conforming aircraft" on the recent earnings call.

In comparison, Archer's management has not said it has produced an FAA-conforming aircraft. Still, CEO Adam Goldstein did say, "We're actively working with the FAA on for-credit testing this year." That said, readers should note that this could refer to component-level rather than aircraft-level testing of an FAA-conforming aircraft.

Whichever way you take it, Joby is slightly ahead.

Image source: Joby Aviation.

Why FAA certification matters more to Archer Joby's focus is on becoming a vertically integrated transportation-as-a-service (TaaS) company that builds, owns, and operates its eVTOLs, and Archer's focus is on being an original equipment manufacturer (OEM). While the distinction is somewhat blurred (Joby will also sell some aircraft, and Archer has some TaaS plans of its own, such as becoming an airport shuttle service), it helps explain why early FAA certification is arguably more of a game changer for Archer. Simply put, Archer is likely to generate more upfront revenue and cash flow from OEM sales. In contrast, Joby's business model entails building a TaaS network before it receives significant recurring revenue from ride services.

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What investors should look for in both companies For Joby, the key milestone to follow as it moves toward 100% credit testing is achieving FAA TIA, which will allow final testing to begin. For Archer, it's building its FAA-conforming eVTOL and having its pilots fly it. Joby looks likely to achieve FAA certification first (though the situation is highly dynamic), but arguably, certification will unlock more value for Archer Aviation. Winning the race is important, but think of it as the first leg in a relay race rather than a one-off sprint.

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Archer Aviation (NYSE: ACHR | ACHR Price Prediction) announced on August 10 it would acquire Boeing’s Wisk Aero, Insitu, and SkyGrid businesses in exchange for a strategic Boeing equity stake. Insitu alone generates more than $200 million in annual revenue, an order of magnitude jump from Archer’s $5 million in Q2 2026 revenue.

Our 24/7 Wall St. price target for Archer is $11.63, implying 93.48% upside from the current $6.07 quote. That earns a buy with medium confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $6.07 24/7 Wall St. Price Target $11.63 Upside 93.48% Recommendation BUY Confidence Level 50% Boeing Deal Reframes an Otherwise Ugly Quarter Archer shares are down 14.23% year to date and 30.57% over the past year, but the stock is up 21.47% in the last month since mid-July.

Q2 was mixed: revenue of $5 million beat the $1.96 million consensus by 154.62%, GAAP EPS of -$0.34 missed the -$0.2506 estimate. Net loss widened to $263.20 million, and liquidity closed at $1.56 billion. The Boeing announcement is driving sentiment.

Why Bulls See a Breakout Ahead The bull case rests on Archer transforming from a pre-revenue eVTOL developer into an end-to-end physical AI platform for aerospace and defense. CEO Adam Goldstein called the Boeing deal an “important inflection point” and told analysts Insitu is a “profitable business generating more than 200 million of revenue a year” that should contribute positive free cash flow after closing.

Halo Thunder, developed with Anduril, addresses what management pegs as a $100 billion-plus total addressable market, aligned with the Pentagon’s $53.6 billion FY2027 autonomous systems budget. If the base case plays out, our bull-scenario price rises to $14.60 within twelve months.

What Could Go Wrong Archer burned $177.10 million in adjusted EBITDA losses in Q2, with Q3 guided to another $170 million to $200 million loss. Capex jumped 268% year over year to $69.70 million, and liquidity slipped from roughly $1.80 billion in Q1.

The Boeing transaction remains subject to regulatory approval, and integrating three businesses carries execution risk. Management has committed to keeping cash burn “relatively flat from where it stands today” post-close, with Insitu’s cash flow offsetting Midnight investment. Bear-case price: $9.30.

How Archer Compares to Joby and AeroVironment Joby Aviation (NYSE: JOBY) is the direct eVTOL comparable. Joby carries a $7.41 billion market cap versus Archer’s $4.64 billion, despite guiding to only $115 to $125 million in 2026 revenue, most from its Blade subsidiary. On a market-cap-to-forward-revenue basis, Joby trades richer than Archer would even after Insitu closes, making our $11.63 target reasonable rather than aggressive.

AeroVironment (NASDAQ: AVAV) is the right defense-drone benchmark for what Insitu could become inside Archer. AeroVironment guided fiscal 2027 revenue to $2.13 billion to $2.23 billion with non-GAAP EPS of $3.02 to $3.34, backed by record bookings of $2.7 billion. That is the profitability arc bulls want Archer to walk. AeroVironment’s $8.04 billion market cap suggests real upside if Archer can prove Insitu scales similarly.

Our Take at Current Levels Our 24/7 Wall St. price target is $11.63 with a buy rating and 50% confidence. Insitu instantly converts Archer from a story stock into a company with a real revenue base and defense exposure aligned to a rising Pentagon drone budget.

The setup rewards investors who can tolerate a 3.21 beta and view a year-end Boeing deal close as the base case. Risk skews the other way if regulatory approval slips into 2027 or if Q3 cash burn exceeds the $200 million high end of guidance.

Year 24/7 Wall St. Price Target 2026 $11.63 2027 $19.56 2028 $26.68 2029 $32.28 2030 $36.38 These projections assume Archer closes the Boeing deal on schedule, achieves FAA type certification for Midnight, and scales Halo Thunder deliveries through 2029. Significant upside or downside could result from Pentagon procurement decisions on autonomous VTOL platforms or delays in commercial eIPP operations.

Contact [email protected] for any questions or corrections.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Archer Aviation Inc. (ACHR - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Archer Aviation currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 2.00 indicates Buy.

Of the 10 recommendations that derive the current ABR, four are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 40% and 20% of all recommendations.

Brokerage Recommendation Trends for ACHR

Check price target & stock forecast for Archer Aviation here>>>

The ABR suggests buying Archer Aviation, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is ACHR a Good Investment?In terms of earnings estimate revisions for Archer Aviation, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at -$0.99.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Archer Aviation. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Archer Aviation.

Archer Aviation (ACHR -5.02%) reported its second-quarter results on Monday, and the two numbers that matter most sit at opposite ends of the release. The air taxi maker expects an adjusted EBITDA loss of $170 million to $200 million for the third quarter. And it closed out June holding $1.56 billion in cash, cash equivalents, and short-term investments.

Set one number against the other and the arithmetic is simple: At the top of that guidance, Archer's money covers roughly two more years of losses. What has to happen inside them?

After all, this is a company still almost entirely ahead of its revenue. Second-quarter sales were $5 million, mostly from operating Hawthorne Airport in Los Angeles, against a net loss of $263 million.

None of that is surprising for a business building an aircraft program and a defense platform at once. But it does make the balance sheet the number to watch. As of this writing, shares sit near $6.60 after sliding 5% on Friday.

Image source: Getty Images.

A bigger loss each quarter Adjusted EBITDA (a non-GAAP measure of earnings before interest, taxes, depreciation, and amortization, with further adjustments that exclude items like stock-based compensation) is the figure Archer guides on. A year ago, the quarterly loss on that basis was $118.7 million. This year's first quarter came in at $172.5 million, and the second at $177.1 million. And the new guidance brackets that number rather than shrinking it.

Total operating expenses rose 61% year over year to $284 million. The $28 million step-up from the first quarter, management says, reflects expanded flight testing, certification work, and production of its Midnight aircraft, plus its hybrid military aircraft and ZEE, its aviation artificial intelligence (AI) model.

The all-in cash number runs higher still. Cash and investments fell by $215 million during the quarter, with $156 million of that used in operations. Most of the rest went to capital expenditures and to buying the operator business at Hawthorne Airport.

Of course, that last piece was a $25 million one-time purchase. But the balance has stepped down all the same, from $1.96 billion at the end of December to $1.78 billion in March to $1.56 billion in June.

Two years of room The reason to spend at this pace is that Archer believes it is close. In April, the company became the first in its industry to close the third phase of the FAA's four-phase type certification process. It is now in the final phase, where Midnight's compliance is demonstrated through formal testing.

Operations are supposed to come sooner. In July, Midnight flew its first piloted city-to-city trips in California. Over the next few months, Archer plans to begin flying in the Los Angeles area from Hawthorne. Later this year, it expects to commence operations in Texas under the White House's eVTOL Integration Pilot Program.

I'd argue those dates matter more here than they would at most companies, because the waiting itself now has a price. At the guided pace, six months of schedule slippage costs about $400 million.

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The Boeing test The deal Archer announced alongside the results brings the first substantial revenue the company has ever had. Insitu, which builds unmanned military aircraft and operates across 35 countries, takes in over $200 million of revenue a year -- and does so profitably. The transaction, which also hands Archer the autonomy developer Wisk Aero and the airspace-software company SkyGrid, is slated to wrap up before 2026 ends.

Boeing, for its part, is set to take a stake in Archer and to invest in the company.

But does the deal lighten the spending, too? In his shareholder letter, CEO Adam Goldstein wrote that he has tasked his team with integrating the companies "in a thoughtful and synergistic way that will not structurally increase our overall cash burn."

The third-quarter guidance can't confirm that either way. The deal hasn't closed, so none of the acquired businesses are in the numbers yet. However, the first guidance Archer issues after closing is where the commitment becomes checkable.

Ultimately, the math is unusually simple for a growth stock this speculative. Archer's own guidance puts its quarterly losses as deep as $200 million, and the balance sheet holds about eight quarters of losses that size -- fewer if cash keeps leaving faster than the guided measure, the way it did last quarter. If Midnight starts carrying passengers on schedule and the Boeing businesses arrive without pushing spending higher, that could be plenty. I'd just note that both of those are still plans, and that the loss has grown in each of the past three quarters.

Archer Aviation (ACHR +10.81%) stock is down over 20% in 2026 and trades roughly 56% below its 52-week high of $14.60. Those glaring red numbers, however, don't tell you the full story. Indeed, the irony in Archer's recent decline is that, even while it trades in the red, its business has never looked stronger. 

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Archer is becoming a stronger company At its core, Archer Aviation is developing an electric vertical takeoff and landing (eVTOL) aircraft called Midnight.

This small electric aircraft is being designed to lift straight off a rooftop and fly you to your destination in about 10 to 15 minutes. If Archer can get Midnight through the FAA's regulatory process, which it has been progressing through steadily, commercialization of this air taxi could unlock untold billions in revenue.

Image source: Archer Aviation.

That's been Archer's primary story. But recently, it's added another node to its growth thesis: defense.

In one sense, Archer has always had defense in mind. It partnered with defense technology company Anduril in 2024, and it has worked with the Department of Defense through the Air Force's AFWERX program since 2021. But that side of its business has perhaps never looked more substantial than it does today.

In July 2026, Archer and Anduril unveiled a jointly developed autonomous platform for defense and commercial applications. Anduril revealed its defense variant, Thunder, while Archer revealed a commercial variant, Halo.

These aircraft use a hybrid-electric powertrain, so they're not, strictly speaking, eVTOLs. That's not a bad thing: The hybrid design gives them a greater range than an aircraft that runs on battery power, like Midnight. This, in turn, could open the door to businesses whose purposes for aircraft would be utterly impractical for an urban air taxi.

Then, in August, Archer made another announcement: It agreed to acquire three businesses from Boeing -- Wisk Aero, Insitu, and SkyGrid -- largely in exchange for newly minted Archer stock and warrants. One of these businesses, Insitu, is a profitable defense company that has generated over $200 million in annual revenue. Compare that to Archer's revenue last quarter ($5 million), and you can see how this acquisition could give Archer something it badly needs.

Why I think the sell-off creates an opportunity for long-term investors First off, don't get the wrong impression. These developments in Archer's defense business, while strengthening the company overall, don't change what Archer needs most to grow in the long term: an FAA-certified Midnight.

More than that, it needs hundreds of these bad boys operating in U.S. cities and around the world. That's the vision Archer sold to early investors, and that's the reality Archer needs to realize if it wants to grow significantly.

At the same time, Archer is trading at half its former 52-week high while also looking a little less speculative. The company still needs to work on its fundamentals and obtain FAA type certification for its eVTOL Midnight.

But today's price gives investors a better risk-reward setup than they had when Archer stock was at near highs. There's still plenty of risk, but for investors willing to stomach the volatility, I think Archer's beaten-down price offers a compelling long-term opportunity.

Archer Aviation (ACHR +11.21%) stock has been red-hot of late. For much of the year, it's been doing poorly, but there have been some recent developments, including a deal to acquire multiple businesses from aircraft giant Boeing, which appear to have sparked renewed interest in this electric vertical takeoff and landing (eVTOL) company.

In just the past month, the stock has soared an incredible 45%. The big question is: has it risen too much too quickly, or can there still be more room for Archer's stock to rise even higher?

Image source: Getty Images.

Archer has been expanding its operations
On Aug. 10, Archer announced it reached an agreement to purchase three of Boeing's subsidiaries: Wisk Aero, SkyGrid, and Insitu. Archer CEO Adam Goldstein calls this "a watershed moment for Archer and the future of physical AI in aerospace and defense."

Wisk makes eVTOL aircraft for civilian and military use; SkyGrid develops ground-based air traffic control software; and Insitu manufactures uncrewed aircraft systems and AI-powered software for defense applications.

These businesses can help further expand and diversify Archer's operations, setting it up for future growth opportunities. Last month, the company also unveiled new autonomous aircraft -- Thunder for defense applications, and Halo for commercial purposes. It worked with Anduril, a defense technology company, to develop and design them.

For growth investors, this is a promising sign of the company's ambitions and long-term potential.

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Is Archer's stock heading even higher?
Although Archer's stock has been rallying, it's still down more than 50% from its 52-week high of $14.62. At around $5.1 billion in market cap, its valuation is significant given that its Midnight aircraft still hasn't obtained regulatory approval, and that may not happen anytime soon. There's ample risk here for investors, as the company continues to incur significant losses. In its most recent quarter, which ended on June 30, the company's net loss totaled $263 million, up from $206 million a year ago.

Archer is expanding its business and has some promising opportunities ahead. It is, however, a risky stock, and there is plenty of uncertainty ahead. But for growth investors willing to be patient, there could be much more room for the stock to rise higher. In the short term, there may still be considerable volatility, which is why investors buying eVTOL stock will need a high tolerance for risk.

Archer Aviation (ACHR +3.82%) still has a long road ahead. The upstart aircraft maker isn't generating meaningful revenue, remains unprofitable, and has yet to begin large-scale commercial operations. Yet CEO Adam Goldstein continues projecting confidence about the company's future, and unlike many early-stage aerospace companies, Archer now has several tangible milestones to support that optimism. The biggest catalyst is commercialization.

Management now expects to begin initial U.S. operations later this year through the White House's eVTOL Integration Pilot Program (eIPP) while continuing preparations for the 2028 Los Angeles Olympics, where Archer hopes to showcase its Midnight electric aircraft. The company has also noted that it has made record progress toward FAA certification, becoming the first eVTOL manufacturer to complete phase 3 of the FAA's four-phase type certification process.

All this doesn't mean certification is finished, but it does suggest Archer is moving closer to commercial service than some may realize -- and that should be good news for investors.

Balance sheet is strong Early-stage aviation and aerospace companies typically face one recurring problem: cash. Aircraft development is expensive, certification takes years, and delays are common. Companies often need to raise additional capital long before they generate meaningful revenue. Archer appears well positioned here, though.

Image source: Getty Images.

At the end of Q2, Archer held approximately $1.56 billion in cash, cash equivalents, and short-term investments. During the quarter, the company used roughly $156 million in operating cash while investing another $37 million in property and equipment as production ramp-ups continued. That isn't sustainable forever, but it does provide Archer with considerably more flexibility than many early-stage aerospace companies that must regularly raise new capital.

More than just an air taxi company One notable shift in Goldstein's messaging is that Archer increasingly describes itself as an aerospace and defense technology company rather than simply an urban air mobility business.

That strategy received a major boost with the announcement that Archer will acquire Boeing's Wisk business, drone manufacturer Insitu, and airspace software company SkyGrid. That transaction gives Archer access to autonomous flight technology while adding an existing defense business that generates more than $200 million in annual revenue through Insitu.

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This was not a trivial move. Instead of waiting years for air taxis alone to become profitable, Archer could begin generating meaningful revenue from defense, autonomous systems, and aviation software much sooner.

Of course, none of this eliminates risk. Archer still reported only about $5 million in second-quarter revenue while posting a net loss of more than $263 million as it continues investing heavily in certification, manufacturing, and new aircraft development. Commercial operations remain dependent on final FAA approval, and delays would almost certainly push profitability further into the future.

Still, Goldstein's confidence appears more credible today than it did a year ago. Archer now has regulatory momentum, a sizable cash reserve, manufacturing capacity, government partnerships, and an expanding aerospace and defense strategy that extends well beyond air taxis.

The company still has plenty to prove, but it's certainly no longer just a "concept." And the market is now starting to evaluate it as a real, viable business that's beginning to assemble the pieces necessary for commercial execution.

HOUSTON, TEXAS - MAY 20: Wisk Aero showcases their fully autonomous electric air taxi at the Xponential Convention held at the George R. Brown Convention Center on Tuesday, May 20, 2025 in Houston. (Raquel Natalicchio/Houston Chronicle via Getty Images)

Houston Chronicle via Getty Images

Boeing’s planned transfer of Wisk Aero, Insitu, and SkyGrid to Archer Aviation may look like conventional portfolio restructuring, but it demonstrates an important principle for every industrial company: Focus is an operational capability.

Under the agreement announced in August, Archer plans to acquire the three subsidiaries, while Boeing will receive shares equal to 19.75% of Archer’s Class A shares outstanding immediately before closing, subject to adjustments. Boeing will also receive warrants, retain access to Wisk’s autonomous flight technology, and hold the conditional right to designate a director to Archer’s board.

This structure allows Boeing to maintain exposure to autonomous aviation, electric vertical takeoff and landing aircraft, and unmanned systems without continuing to operate every business developing them. That matters because Boeing’s central challenge is converting unprecedented demand into safe, predictable production and consistent aircraft deliveries.

Focus Is About More Than Capital

Industrial strategy is often discussed in financial terms, but money is only one constraint. Management attention, engineering capacity, manufacturing expertise, supplier development resources, and program leadership are also limited, which means every additional business competes for resources that could support core operations.

This competition is especially important in aerospace, where products must move through demanding development, certification, production, and sustainment cycles. An aircraft can have advanced technology, an attractive market, and talented engineers, yet still struggle if the organization cannot turn the concept into a reliable product at scale.

MORE FOR YOU

Wisk is developing an autonomous, all-electric air taxi, while Insitu brings established unmanned aircraft systems, more than 1.6 million operational flight hours, and customers across 35 countries. SkyGrid adds digital airspace integration and air traffic management capabilities. These businesses operate in promising markets, but their potential does not necessarily make Boeing their best long-term owner.

Boeing’s Immediate Priority Is Execution

Boeing entered the second half of 2026 with a record $715 billion backlog, including more than 6,200 commercial airplanes. Its 737 program began transitioning toward 47 aircraft per month, while low-rate initial production started on the new 737 North Line in Everett, Washington.

Boeing is also advancing certification of the 737-7, 737-10, and 777-9, stabilizing higher 787 production, and managing major defense programs. The company must improve quality, strengthen supplier performance, and increase output without placing excessive stress on its production system.

Against that backdrop, the relevant question is not whether autonomous aircraft or advanced air mobility have a future, but whether operating three specialized subsidiaries represents the best use of Boeing’s organizational bandwidth.

By transferring direct operating responsibility to Archer, Boeing could devote more attention and investment to its core commercial and defense programs while preserving access to technology that may shape future aircraft. Viewed in that context, the transaction reflects strategic discipline rather than a retreat from innovation.

Preserving Future Growth

Boeing is not fully separating itself from these businesses. It would become a significant Archer shareholder, retain access to Wisk’s autonomous flight technology, and establish an ongoing technology-sharing arrangement with Archer.

This creates a middle ground between full ownership and complete separation, allowing Boeing to participate in potential growth without bearing the entire cost, risk, and responsibility of operating the businesses.

That model is relevant in emerging aerospace markets, where electric vertical takeoff and landing aircraft still face certification, infrastructure, production, and economic challenges. Equity investments and strategic partnerships can preserve access to innovation while allowing management to concentrate on current execution.

Archer Faces The Industrialization Test

For Archer, the agreement represents more than the acquisition of an air taxi competitor. Wisk would contribute autonomous electric aircraft development, Insitu would add defense operations and unmanned aircraft systems, and SkyGrid would bring digital airspace capabilities.

Archer plans to combine these businesses with its Midnight electric aircraft, ZEE artificial intelligence platform, and Halo and Thunder autonomous hybrid VTOL platform developed with Anduril. Boeing and Archer say the businesses bring nearly two million combined flight hours and a profitable defense operation generating more than $200 million annually, primarily through Insitu.

Although the strategic logic is compelling, Archer must integrate organizations with different products, customers, systems, and cultures while retaining critical talent and protecting customer relationships.

It must also turn advanced technology into scalable and supportable products. Aerospace has no shortage of impressive prototypes, but the difficult work begins when a company must establish qualified suppliers, repeatable manufacturing processes, configuration control, quality systems, and full-scale production.

The Lesson For Industrial Leaders

Manufacturers often accumulate products and business units because each offers value, but the portfolio can eventually become more complex than the operating system can support.

Leaders must determine which capabilities are central to their competitive advantage, which require greater investment, and which could create more value under different ownership. The objective is to align capital, people, capacity, and management attention with the areas where the organization can execute most effectively.

The transaction will not automatically resolve Boeing’s production challenges or guarantee Archer’s success, since both companies must translate their strategic logic into operating results. In complex manufacturing, focus is not the absence of ambition; it is the discipline required to turn ambition into execution.

After a relatively quiet first half of the year, Archer Aviation (ACHR -7.00%) has kicked things into high gear. It's announced a flurry of exciting developments in recent weeks, the most recent of which involves its longtime partner, aerospace giant Boeing (BA -1.28%)

Archer has agreed to buy three Boeing businesses -- Wisk Aero, Insitu, and SkyGrid -- in exchange for newly issued Archer stock. When the deal closes, Archer will issue Boeing a stake in its stock equal to 19.75% of Class A shares immediately beforehand.

Archer stock surged as much as 25%, but has since dialed back to a roughly 13% gain at the time of this writing. Still, the news has reinvigorated Archer investors with what could become one of the most consequential deals in the company's short history -- at least, from the standpoint of its burgeoning defense business.

Let's look at why the deal matters, the pros and the cons, and whether it makes me more or less bullish on Archer stock.

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Boeing is giving Archer's defense business a major boost Archer is trying to build new aircraft for urban transportation, military, and defense. For almost its entire life, the company has been working tirelessly to certify its Midnight eVTOL (electric vertical take-off and landing) aircraft, which would enable it to commercialize its air taxi business.

Image source: Archer Aviation.

Most people have known Archer from this vision of urban air travel, which has often been likened to flying cars (though don't get your hopes up: Midnight is nothing like the hovering cars of Back to the Future: Part II). But lately Archer has leaned harder into another side of its business, one that could put much-needed revenue in its pockets before the air taxi side is clear for takeoff.

That side of its business is defense. Archer has worked with the U.S. Department of Defense for years, but its current defense business ramped up in late 2024, when Archer and the defense technology company Anduril established a strategic partnership. The fruits of that relationship emerged last month, when the companies unveiled a jointly developed autonomous platform and its military variant, Thunder.

It's no shocker, then, that one of the three Boeing businesses Archer is acquiring is also a meaningfully profitable military-drone company -- Insitu. Insitu, which deals in uncrewed aircraft systems (UAS), and has manufactured and fielded more than 3,500 of them, is generating more than $200 million in annual revenue. That's almost $200 million more than what Archer itself generated in 2025 (about $300,000).

Archer also bought Wisk, a separate eVTOL company, which has completed more than 1,700 flight tests of its own eVTOLs, and SkyGrid, an air traffic management platform.

Altogether, these three businesses, along with Archer's other air taxi and defense businesses, are turning Archer into a much broader aerospace company, one that could control much more of the technology behind autonomous aviation than previously thought.

The hefty cost of the deal: dilution For Archer investors, these three businesses came at a cost -- the cost of dilution.

It's always a threat when you invest in an early-stage company that it will rely heavily on equity to fund its expansion, development, and research. Likewise, the Boeing-Archer deal means investors will own a smaller percentage of Archer once the deal is done. Boeing also has two warrants, which could cause further dilution down the line.

That isn't insignificant, but whether the dilution proves worthwhile will ultimately depend on how much Wisk, Insitu, and SkyGrid improve Archer's long-term growth story.

On the one hand, the deal certainly diversifies Archer's business. It's not completely reliant on Midnight's certification to get its revenue going. On the other hand, Archer still doesn't have an air taxi business. We can't let a blockbuster deal obscure that fact. No matter how successful the defense side becomes, without certification for Midnight, manufacturing Midnight to scale, and putting paying passengers in the air, Archer will likely never live up to lofty expectations.

In the end, the deal makes me less cautious about Archer's future, but not yet more bullish. I might buy a few more shares of Archer, but until I see advancements in Midnight's certification, I'm not ready to make Archer a much larger position.

Archer Aviation (ACHR +9.19%) stock was up more than 9% as of 12:59 p.m. ET Tuesday. Markets were down slightly, with the S&P 500 falling 0.2% and the Nasdaq Composite losing 0.5%.

Shares of the electric vertical takeoff and landing (eVTOL) developer are flying higher following the release of its latest earnings report and the announcement of a major deal with aviation giant Boeing.

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Archer beats Wall Street's expectations Archer's Q2 earnings, released after yesterday's close, beat Wall Street's expectations handily. The company reported revenue of $5.0 million, more than 150% higher than analysts had targeted, and the company's adjusted earnings per share (EPS) came in at a $0.23 loss, better than the expected 25-cent loss per share.

Image source: Getty Images.

Archer and Boeing announce a major new deal On Monday, news broke that Archer intends to buy three businesses from Boeing in exchange for a roughly 20% stake in Archer and additional stock warrants:

Insitu, a defense tech company that makes surveillance and reconnaissance drones. Wisk, a developer of autonomous and unmanned airtaxis. SkyGrid, a developer of software for unmanned flight. Though the full, audited financials have not been released, Archer says that Insitu brings in $200 million in annual revenue and is profitable.

Should you buy Archer Aviation stock? The new deal could reshape Archer's finances -- $200 million in annual revenue is a huge improvement. But just how much this changes things depends on the full financials. We don't know what "profitable" means at this point. This could mean its core operations are profitable, but not overall, which would introduce additional strain on the company's cash reserves.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.

Archer Aviation Inc. (NYSE:ACHR) isn’t giving up on air taxis. But the company is increasingly betting that defense can help pay the bills while it waits for the commercial market to take off.

That was a key message from CEO Adam Goldstein after Archer announced plans to acquire Boeing Co(NYSE:BA)-owned Wisk Aero, Insitu and SkyGrid in an all-stock transaction. The deal would transform Archer from an eVTOL-focused company into a broader aerospace, defense and AI platform — and give it a faster path to revenue.

Goldstein said the commercial passenger market has an "incredibly large TAM," but acknowledged that it is difficult to predict "exactly how fast it will scale and exactly when it will scale."

Defense, by comparison, could move faster.

Defense Could Bring Revenue Sooner"The defense side of the business becomes very attractive, as there are pathways to launch autonomous products in different airspace that are just much easier to get to market more quickly," Goldstein said.

That is important for Archer investors because the company’s air-taxi ambitions require significant spending before Midnight can become a scaled commercial business.

Archer believes defense can help bridge that gap. Goldstein said the strategy could generate revenue and cash flow that would help the company reach profitability sooner and reduce its burn across its civil businesses.

The acquisition of Insitu is particularly important to that thesis. Boeing’s drone business generates more than $200 million in annual revenue and is already profitable, giving Archer an established business rather than another development-stage program. Management expects Insitu to generate substantial revenue in a growing market and help bridge Archer’s path toward profitability.

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Archer Still Wants the Air-Taxi PrizeThe defense pivot doesn’t mean Midnight is being pushed aside.

"Midnight is core to our platform here at Archer, and we will work on that platform and get it to market," Goldstein said.

Instead, Archer is trying to use defense as an earlier commercialization pathway for technology that can eventually support its civil ambitions.

Its Halo Thunder platform, developed with Anduril, is designed for longer-range, heavier-payload missions than Midnight and is expected to fly next year, with customer deliveries targeted for 2029. The defense variant can also follow a more straightforward military airworthiness pathway.

Goldstein summed up the strategy bluntly: "Defense does give us a pathway to deploy products faster, and that does come with revenue and learnings."

For investors, that makes Archer’s defense expansion more than diversification. It could be the financial bridge that allows the company to keep funding its much bigger — and much slower — air-taxi opportunity.

Read Next

Photo by bluestork via Shutterstock

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