Shares of Archer Aviation (ACHR 3.80%), the eVTOL maker, trade around $6.50, down more than 28% over the past year. With the stock trading below $7, investors may think it looks like a good deal, but is it?
Archer Aviation has cash
Archer ended 2025 with about $2 billion in cash and short-term investments, giving it a multiyear runway at current burn rates. It also carries very little debt.
Image source: Archer Aviation.
Beyond the balance sheet, the company's commercial operations look close to getting off the ground in the United Arab Emirates. The country has identified 10 initial "vertiport" sites, while Abu Dhabi Aviation has signed on as Archer's first regional operator.
And, critically, Archer just cleared Stage 3 of 5 in its Type Certification for the Federal Aviation Administration (FAA), bringing U.S. operations closer to reality.
NYSE: ACHR
Key Data Points
Joby is still ahead
However, the company still lags behind Joby Aviation (JOBY 2.27%), its closest competitor, which is already deep into Stage 4 of the process. In this market, the first to cross the finish line will have a huge advantage.
Archer's market cap of nearly $5 billion is disconnected from reality, and despite the stock's recent decline, it's still too pricey in my view, given the risks. If you are an eVTOL believer, Joby is the better bet.
