Should you invest in Archer Aviation?
Archer Aviation is a speculative investment best suited for investors with a long time horizon, high risk tolerance, and a well-diversified portfolio. If you prefer profitable, dividend-paying companies in established industries, this stock is likely not a fit.
Once it receives FAA certification, Archer plans to operate two businesses: Archer UAM, a direct-to-consumer urban air taxi service, and Archer Direct, which sells aircraft to third-party operators. Management believes its vertically integrated model could enable competitive pricing versus ground-based ride-sharing.
Archer has lined up strategic partners to support commercialization, including a conditional aircraft purchase agreement with United Airlines worth up to $1.5 billion and manufacturing support from Stellantis.
That said, Archer currently generates no revenue and remains dependent on regulatory approval. The company is investing heavily in manufacturing and supply chain readiness so it can scale production once certification is secured.
NYSE: ACHR
Key Data Points
Is Archer Aviation profitable?
Archer Aviation is not profitable and is still technically in the pre-revenue stage of its business while its flagship aircraft, awaits FAA certification. Profits are unlikely to occur for at least the first few years of official business operations.
Does Archer Aviation pay a dividend?
Archer Aviation does not pay a dividend. The stock is pre-revenue and has no earnings, so a dividend is not a realistic expectation for investors to have in the near future.
Related investing topics
FAQ
Investing in Archer Aviation FAQ
About the Author
