Archer Aviation (ACHR) Stock: Why Top Investors Are Jumping Ship to Joby

TLDR

• Archer Aviation stock fell over 45% from its October peak following Q3 earnings, closing at $8.18 on November 7.
• The company posted a Q3 net loss of $129.9 million on zero revenue but raised $650 million in new equity, bringing total liquidity above $2 billion.
• Two prominent investors shifted focus to competitor Joby Aviation, citing Joby’s more advanced FAA certification status and actual revenue of $22.6 million from Blade services.
• Archer purchased Hawthorne Municipal Airport for $126 million in cash to serve as a Los Angeles operations hub, a move questioned given the company’s pre-revenue stage.
• Wall Street analysts maintain a Strong Buy rating with an average price target of $12.43, representing 51.96% upside potential despite the recent sell-off.

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Archer Aviation shares tumbled after the company released its third-quarter earnings last week. The stock fell more than 45% from its October peak. It closed at $8.18 on November 7.

Archer Aviation Inc., ACHR

The company reported a net loss of $129.9 million on zero revenue for the quarter. The loss came in larger than analysts expected. Investors responded by selling off their positions.

The sell-off happened during a broader market pullback. Concerns about tech valuations and economic data pushed investors toward safer holdings. Challenger, Gray & Christmas reported that U.S. companies laid off more than 153,000 employees in October. That marked the highest monthly layoff count since 2023.

Archer raised $650 million through a new stock offering during the quarter. The capital raise boosted total liquidity above $2 billion. The company also announced plans to purchase Hawthorne Municipal Airport for $126 million in cash.

The airport sits several miles from LAX. Archer plans to use it as a base for future operations in Los Angeles. The purchase raised questions among some investors given the company’s current stage. The firm has yet to generate commercial revenue.

FAA Certification Timeline Creates Uncertainty

Top investor JR Research highlighted certification as the main hurdle facing Archer. The FAA approval process involves multiple steps that could take several years. Archer expects to begin its first Type Inspection Authorization by the end of 2025.

That milestone represents only the beginning of the certification journey. JR Research noted the path to full approval remains complex. The investor assigned a Hold rating to the stock.

Five-star investor The Alpha Analyst pointed to competitor Joby Aviation as a better positioned option. Joby has progressed further in FAA testing. The company is already conducting for-credit pilot trials.

The Alpha Analyst sees this timing difference as giving Joby an edge. Earlier market entry could lead to better credibility and faster adoption. The investor recommended a pair trade: buy Joby while selling Archer.

Different Approaches to Capital Deployment

The two companies have taken different paths with their funding. Archer used $126 million to acquire the Hawthorne airport. JR Research questioned the timing of this move. The company is still pre-revenue and burning through cash.

Joby has focused more on manufacturing and testing. The company added over 100 production jobs during the year. It scaled up parts production and completed more than 600 test flights in 2025.

Joby also reported $22.6 million in revenue from Blade services during the third quarter. This marks actual commercial income while Archer remains at zero. Both companies hold letters of intent from major airlines. But Joby’s revenue generation sets it apart at this stage.

Archer announced plans to produce 50 aircraft annually. The company’s expansion forecasts disappointed some investors. The net loss and capital deployment strategy contributed to the stock’s decline.

JR Research maintained its Hold rating based on valuation concerns. The investor noted that Archer needs perfect execution through 2029 to meet long-term targets. The Alpha Analyst took a more active stance by favoring Joby over Archer.

Wall Street analysts remain optimistic despite the recent price drop. Seven analysts rate the stock a Strong Buy. The average price target sits at $12.43. That implies 51.96% upside from current levels.

The divergence between analyst views and investor sentiment reflects different time horizons. Analysts focus on long-term potential while active investors weigh near-term execution risk. Archer’s total liquidity now exceeds $2 billion following the recent capital raise.

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