Archer Aviation Draws Retail Buzz After Raising $650M, Q3 Report

The company disclosed $1.64 billion in cash and equivalents as of the end of the third quarter, down from $1.72 billion at the end of the second quarter.

• Archer Aviation raised $650 million in new equity capital and signed an agreement to acquire the Hawthorne Airport for $126 million.
• The company disclosed $1.64 billion in cash and equivalents as of the end of the third quarter, down from $1.72 billion at the end of the second quarter.
• Shares dropped nearly 10% in after-hours on Thursday, even as Stocktwits sentiment ticked higher.

Archer Aviation, Inc.’s stock trended at number two on Stocktwits early Friday. It had declined 9.7% in the extended session the previous day, after the air taxi company’s quarterly report and a few significant business updates.

Major Deals

Archer announced that it had secured $650 million in new equity capital and signed definitive agreements to acquire Hawthorne Airport in Los Angeles for $126 million in cash. 

Archer plans for the airport to serve as its operational hub for its planned L.A. air taxi network operations, including serving a key role in the LA28 Olympics Games, the company said in a press release.

What Is Retail Investors’ View?

On Stocktwits, the retail sentiment for ACHR flipped to ‘bullish’ as of early Friday, from ‘bearish’ the previous day, with several users saying they added the stock to their watchlists.

“$ACHR back in the boat for the next ride upstream,” said one user.

Notably, the company’s shares have declined sharply over the past few weeks. They are down about 34% from an all-time high on Oct. 6, and about 9% down year-to-date.

Financial Performance

A pre-revenue company, Archer disclosed $1.64 billion in cash and equivalents as of the end of the third quarter, down from $1.72 billion at the end of Q2. Archer’s rival Joby Aviation (JOBY), which reported its third-quarter results on Wednesday, disclosed cash of $978.1 million.

The company is developing electric battery-powered VTOL (vertical take-off and landing) and working through regulatory certification and commercial deployment. Its first aircraft, Midnight, is currently under manufacturing at company facilities in California and Georgia.

The company recently signed an agreement to supply the Midnight aircraft to the UAE, and is seeing demand from global defense buyers, it said. 

Archer went public via a SPAC merger in September 2021. 

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