Archer Aviation’s actions fly following a new partnership.
However, the company is still pre-revenue and burns a lot of money.
At least for the moment, this stock presents a lot of risks and little increase.
10 actions that we love better than ACHER AVIATION ›
The Haussier market can return. Investors in Aviation archer(NYSE: ACHR) Do you certainly think, with the action of the action of almost 70% in the last month on the back of an optimistic profits report. The manufacturer reached electric air taxis is trying to disrupt the transport market with its new midnight planes and has orders for governments and companies around the world.
However, the company is still at the certification stage and does not generate income for the moment. With the flush of the stock, should investors buy Aviation archer actions below $ 13? Let’s enter the figures and study more.
Electric air taxis – sometimes called EVTOLS – aim to disrupt the transport market and to mitigate traffic in large cities. There are many start-ups trying to build these planes, Archer Aviation being one of the leaders. With the progress of materials and electric propulsion, the midnight ARCER AVIATION plane can theoretically and safely a group of four people above a city, by jumping the vehicle traffic below.
Initial contracts are fixed with carriers such as United Airlines And with the city of Abu Dhabi in the Middle East. In New York, Archer Aviation plans to have a takeoff site in Manhattan to various airports in the surrounding area, turning what could be a two -hour journey in a 10 -minute air taxi route. With a price of around 5 million dollars per vehicle, Archer Aviation bets that air taxi operators will be able to sell tickets for a nice penny, especially to richer customers.
More excitement comes from the recently announced partnership of ARCHER AVIATION with PALANTOUT TechnologiesA stock that growing investors love for the moment. The details of the partnership are rare. The two companies aim to work on the implementation of artificial intelligence (AI) in new generation aviation technologies, which include hardware and software.
Image source: Aviation archer.
Investors are delighted with the potential of Aviation Archer and its disruptive aeronautical technology. However, it is a product in the early stages.
The midnight vehicle represents only 15% of the compliance verification documents of the Federal Aviation Authority (FAA), and although management claims that certification should move quickly throughout 2025, there is always a risk that the night is not approved for use in the United States. The FAA certification is generally what leads to certifications in other major countries of the world, which means that this is essential for the viability of Aviation’s ARCHER.
Many things apply to FAA approval to operate midnight planes. If this is the case, we have a vapor vapor to try to build taxi networks in cities around the world. Until then, the company will generate zero income and have a major cash flow burn. It has burned $ 450 million in the past 12 months, which means that management collects funds thanks to an increase in stocks in the first quarter of this year.
At the end of the first quarter, he had just over a billion dollars in cash, which gives him about two years of track to take off this project.
ACHR cash flow data available by YCARTS
As a consumer, I hope that the Air Taxi project of Arher Aviation will take off (without puns). He would provide a precious service to society and save people with lost people time.
As an investor, I don’t like the idea of buying Aviation Archer actions. Pre-income companies are at high risk and work barely for investors. With Archer’s market capitalization at 6.6 billion dollars today and the prospects of more equity dilution, investors are now assessing hundreds of annual orders for midnight planes. This means that even if the night is a successful product, the stock will only be enough evaluated at today’s price.
Archer Aviation is currently losing a ton of money. If the FAA delays certification for the midnight, the company could encounter enormous liquidity problems in the coming years, which would crush the course of the action.
Even if the night is approved, it is not clear what will be the total demand for air taxis in metropolitan areas around the world. You can only have so many vehicles flying above residential areas before people and regulators start to become nervous. The operation of an air taxi network will require first -rate security standards with risky lives.
This makes the story of Archer Aviation Stock even more difficult to grasp. With a minimum increase in the price of today and many risks downwards, the Aviation archer shares are those to be avoided below $ 13 per share.
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Brett Schafer has no position in the actions mentioned. The Motley Fool has positions and recommends palantant technologies. The Motley Fool has a policy of disclosure.
Archer Aviation Stock flies: is it still a purchase of less than $ 13? was initially published by the Motley Fool
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