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Archer Aviation’s Dramatic Plunge: Time to Rethink?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 5/30/2025, 2:32 pm ET 5/30/2025, 2:32 pm ET | 5 min 5 min read
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Archer Aviation Inc.’s stocks have been trading down by -4.1 percent amid recent competitive pressures affecting market confidence.

Following the expert’s forecast, the company’s share value plummeted dramatically by 12.1%, settling at $11.69 on 19 May, 2025. Investors and market enthusiasts now keenly watch for the company’s next move.

A notable reveal by Culper Research, asserting misleading information regarding Archer Aviation’s new eVTOL aircraft, Midnight, sent additional shockwaves through the market.

Candlestick Chart

Live Update At 14:31:57 EST: On Friday, May 30, 2025 Archer Aviation Inc. stock [NYSE: ACHR] is trending down by -4.1%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Archer’s Financial Situation: A Quick Dive

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Archer Aviation’s recent earnings report was nothing short of gloomy. Their cash flow from operational activities sits at a negative $94.6M, a reflection of the turbulent journey through which the aviation enterprise is navigating. Operating income mirrored similar distress at -$144M, while their net loss stood at $93.4M.

Understanding profitability ratios reveals more troubling insights: Earning Before Interest and Taxes (EBIT) plunges at a noteworthy -$93.3M, while their EBITDA stands at -$89.2M. The daunting financial figures further amplify concerns over the company’s performance in the coming quarters.

The Balance Sheet, albeit more optimistic, shows a robust cash availability of over $1B. This suggests that the company’s current assets far outweigh its current liabilities, bolstered by a stellar current ratio of 15.8. With a manageable total debt-to-equity ratio of a mere 0.08, Archer Aviation seems to rely relatively little on external borrowings, potentially aiding liquidity during challenging financial periods.

However, these promising figures haven’t shielded the company from a sharp downturn in their stock price, one highlighted by recent cash flow assessments. Notably, their free cash flow vacillates into negative territory at -$104.6M, sending ominous clouds over its long-term viability absent radical improvements.

Challenge Ahead: Navigating Financial Turbulence

Archer Aviation stands at a crossroads. With announced short positions in the market, investors gravitate towards concern over public confidence in their groundbreaking electric vertical take-off and landing (eVTOL) aircraft model, the Midnight. As speculations about the aircraft’s real capabilities take air, so does skepticism surrounding Archer’s future profitability.

More Breaking News

Beyond the ill-timed expert projections and media skepticism, Archer Aviation’s dominant narrative remains the large losses that continue to impact their financial standing. The company must now work diligently to counter investor hesitance and address concerns over their ongoing innovations.

Sticking to the Flight Path

In spite of current setbacks, perhaps most impressive is Archer’s long-term strategy rooted deeply in technological advancements and revolutionary flight solutions. With an ever-increasing focus on the eVTOL concept, the CEO continues to foster belief in sustainable solutions targeting urban transportation.

Despite the challenges, this persistent focus on ambitious innovation continues to energize some core advocates of the technology. Archer Aviation’s potential, coupled with supportive financial health metrics and the promise of urban mobility transformation, help maintain a semblance of hope for enthusiasts and market players alike.

Conclusion

Archer Aviation faces financial adversity exacerbated by unsettling developments in the market, casting doubts about its future trajectory. Traders, experts, and potential participants in the market ought to keep a watchful eye on the company’s strategic decisions and operational updates. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” The fate of their ambitious eVTOL aircraft, Midnight, along with Archer’s ability to bounce back from their current setbacks, will undoubtedly shape the future market landscape of aviation transportation.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”