Archer Stock Is Sliding Tuesday: What's Driving The Action?

Archer Aviation Inc ACHR shares are trading lower Tuesday after the company reported a wider-than-expected loss in the second quarter.

What Happened: Archer reported a second-quarter loss of 36 cents per share, missing analyst estimates for a loss of 26 cents per share, according to Benzinga Pro.

Total operating expenses were $176.1 million in the quarter, or $123.5 million on an adjusted basis. Archer reported an adjusted EBITDA loss of $118.7 million in the quarter and guided for a third-quarter adjusted EBITDA loss of $110 million to $130 million.

“This quarter, we ramped aircraft manufacturing across our facilities in California and Georgia with six Midnight aircraft in production, including three in final assembly,” said Adam Goldstein, founder and CEO of Archer.

“Alongside major progress in the UAE, our selection as the Official Air Taxi Provider of LA28 Olympic Games, and two acquisitions to accelerate our defense program, we're executing from a position of strength with a sector-leading $1.7 billion of liquidity.”

Following the print, Needham analyst Chris Pierce reiterated Archer with a Buy rating and maintained a price target of $13. HC Wainwright & Co. analyst Amit Dayal also reiterated Archer with a Buy and price target of $18.

Archer Aviation shares are trading below the 50-day moving average of $10.56 and the 100-day moving average of $9.64, suggesting a downward trend. Key support is observed at the 200-day moving average of $8.69, which may act as a critical level if the downward pressure continues.

Archer does not have traditional valuation metrics due to unprofitability. The lack of earnings further complicates the assessment of its valuation, making it essential to consider alternative metrics or future growth potential.

ACHR Price Action: Archer Aviation shares were down 5.03% at $9.06 at the time of publication Tuesday, according to Benzinga Pro.

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Photo: courtesy of Archer Aviation.