Archer Aviation Has Fallen 50% and Could Be a Long-Term Buying Opportunity
Archer Aviation's stock rallied after it showed off a new product, but the shares are still down 50% over the past year.
Overview
Archer Aviation (NYSE: ACHR) is one of several companies looking to build a business around electric vertical takeoff and landing (eVTOL) aircraft. The stock was hot not too long ago, but has since cooled off dramatically as it is taking longer than Wall Street would like for the company to get off the ground. But it is making progress, and the stock's 50% pullback over the past year could be a buying opportunity for long-term investors.
Archer Aviation is a money-losing start-up, so it shouldn't be shocking that the stock is risky. In fact, only the most aggressive investors should probably even consider buying it. The volatility you are taking on by owning it has been on clear display over the past year, with the stock down around 50% over that span. That said, that pullback comes after a huge rally in late 2024, when eVTOL stocks were particularly popular on Wall Street. At one point, over the past three years, the stock was up 200%; now it is up just 15% over that span thanks to the current drawdown.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.