After Falling by 36%, Is Archer Aviation Stock a Buy at Around $7?

While electrical aerial taxis are not yet a mainstream method of transportation, Archer has managed to onslaught a fig of absorbing partnerships that person immoderate investors intrigued astir the company's future.

When it comes to fiscal backing, Archer has the enactment of some Stellantis and United Airlines. In addition, the institution has besides partnered with Southwest Airlines, Ethiopian Airlines, and galore much to deploy its craft and assistance commercialized airlines physique fleets of eVTOLs.

Moreover, Archer has received involvement successful the defence assemblage arsenic good -- from the U.S. subject and autonomous systems developer Anduril. Lastly, the institution is adjacent deploying AI bundle from Palantir Technologies to assistance place much businesslike processes erstwhile it comes to manufacturing and scaling.

Given the multitude of applications for eVTOL successful operation with Archer's planetary appeal, determination is crushed to judge that the institution has an tremendous addressable marketplace that includes commercialized aviation, defence contracting, and adjacent AI.

With that said, determination is much to research astir Archer earlier pouncing connected the existent dip successful the company's banal price. Although shares of Archer presently hover conscionable implicit $6, that doesn't archer america overmuch astir the company's existent value. Right now, Archer's marketplace capitalization is astir $3.7 billion. In bid to fig retired if this is simply a bully woody oregon not, let's instrumentality a look astatine Archer's existent fiscal profile.

Over the past fewer years, Archer has done a respectable occupation maintaining a reasonably disciplined attack to its outgo structure. However, nett losses are steepening portion the company's currency equilibrium is rising. How tin that be?

Archer is simply a pre-revenue business, and truthful the institution doesn't really person immoderate income coming done the doorway yet. In bid to put successful probe and improvement (R&D), engineering, marketing, etc., the institution has relied connected Stellantis and different strategical investors to span the spread betwixt gathering standard and really achieving wide commercialization.