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Archer Aviation’s Shares Plummet: Buying Opportunity?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 7/22/2025, 2:32 pm ET 7/22/2025, 2:32 pm ET | 5 min 5 min read
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Archer Aviation Inc.’s stocks have been trading down by -6.54 percent amid market anticipation of strategic shifts in electric aviation.

  • On Jul 2, an Archer Aviation insider, Eric Lentell, sold shares amounting to approximately $1M, which may have contributed to the turbulence in the company’s stock price.

Candlestick Chart

Live Update At 14:32:07 EST: On Tuesday, July 22, 2025 Archer Aviation Inc. stock [NYSE: ACHR] is trending down by -6.54%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Metrics and Latest Earnings

As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This piece of advice is crucial for traders looking to succeed in the volatile world of trading. It reinforces the importance of patience and strategy, highlighting that the urge to act on fear of missing out can often lead to hasty and poor decisions. Such wisdom underscores the significance of discipline in trading, reminding traders to remain calm and rational, waiting for the right opportunity rather than being swayed by fleeting emotions.

In the recent quarter, Archer Aviation displayed some mixed financial indicators. The firm’s income statement emphasized an operating loss of $144M, illustrating the company’s ongoing battle to reach profitability. Despite these challenges, the company maintains a robust cash position, with over $1B in cash and short-term investments. Archer Aviation has had high research expenditures, spending $103.7M on research and development, highlighting its dedication to innovation in the field of aviation.

Examining the metrics, Archer’s price-to-book ratio stands at 6.43, and a vast leverage ratio of 1.2 indicates cautious use of debt in the company’s capital structure. On the bright side, Archer boasts an impressive current ratio of 15.8, which suggests that the company is well-positioned to meet its short-term obligations. However, high research spending paired with substantial debt-to-equity ratios suggests a heavier reliance on borrowed funds. As stock prices experience volatility, Archer’s dynamic financial situation will likely play a crucial role in determining their share performance.

Deciphering the News and Market Movement

The recent changes in Archer Aviation’s upper management, including the resignation of their CFO, could lead investors to re-evaluate their positions, potentially triggering quick opportunities or concerns about leadership stability. This shift comes after major insider trading activity, where substantial shares were offloaded by Eric Lentell. Such actions, combined with volatile stock prices, have urged market watchers to speculate about underlying strategic shifts or uncertainties within the company.

Given Archer’s pivotal role in advancing air mobility solutions, any disruption in leadership may have amplified implications on market confidence. Investors often view such corporate changes as indicators of potential internal challenges, which can translate into fluctuating stock values and elevated market risks.

Overall, the resulting dip in share prices invites analysts to assess whether this adjustment in Archer’s shares suggests a tactical buying moment or room for further risk aversion. While leadership transitions are part of a company’s evolution, their timing, paired with shared insider sales, can exert increased pressure on an already evolving technological firm.

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Key Takeaways and Potential Impacts

Archer Aviation’s stock has recently seen its fair share of disturbances. The transition in the CFO role and the insider sale points towards cautious trader sentiment. However, despite immediate concerns, Archer’s strong cash reserves and strategic emphasis on research & development allow it room to maneuver through market volatility. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” While leadership shifts can raise eyebrows initially, this advice underscores the importance of strategic patience and focus on profit opportunities. Archer’s long-term trajectory in the new-age aviation industry is worth attention, even amidst current fluctuations. With adequate cash in hand and a commitment to innovation, Archer Aviation might yet present opportunities for those looking to capitalize on the industry’s future upswing.

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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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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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 .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

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”