Archer Aviation Stock Is Down Roughly 50% This Year. Here's Why I'm Still Buying.

At first glance, Archer Aviation (NYSE: ACHR) has had a dismal year, at least judging by its stock price. The eVTOL (electric vertical takeoff and landing) stock has sunk to about $4 per share. It opened the year with a price of about $8. That's a 50% drop -- and the year hasn't ended yet.

Below the surface, however, Archer hasn't been at a standstill. Quite the contrary: Looking beyond the stock chart, the company has actually had a good year. In fact, it's made enough progress that I think the beaten-down stock could be a compelling buy for certain investors. Let's take a look.

Commercial flights are coming into view

Archer, to put it plainly, is making electric taxis. It is, along with Joby Aviation (NYSE: JOBY), a pioneer in the nascent eVTOL industry, which is itself part of a broader urban air mobility market that Morgan Stanley once estimated could be worth $9 trillion by 2050.

Image source: Archer Aviation.

Whether the industry actually reaches that size is anyone's guess. But even a small piece of that market could translate into billions in annual revenue for Archer. The challenge, of course, is getting its aircraft -- Midnight -- certified so it can put paying passengers in the air. And that's where I think Archer has made encouraging progress this year.

Earlier in 2026, Archer completed Phase 3 of the FAA's four-phase type certification process, the first eVTOL company to do so. (Joby, it should be said, is working with a different certification process that has five stages; overall, Joby appears to be farther along, although the two processes aren't apples to apples.)

In August, Archer completed more than 70 test flights, and in September, it flew Midnight between Salinas and Hollister, California. Fun fact: It completed the flight between these cities in about 12 minutes; by car, the trip would have taken roughly 40 minutes.

Archer is expanding beyond air taxi services

FAA progress has been encouraging, but it hasn't put a dime in Archer's coffers. Revenue from Archer's eVTOL business remains exactly what it has been all along: zero. But that could soon change.

Recently, Archer announced plans to acquire three subsidiaries from Boeing (NYSE: BA): Wisk Aero, SkyGrid, and Insitu. The last of these is particularly interesting: Insitu, a military drone maker, has a profitable business. Indeed, it generated more than $200 million in annual revenue last year.

For perspective, Archer generated just $5 million in revenue last quarter. If the Boeing deal closes, Archer could have substantial revenue coming in even before Midnight is cleared for commercial takeoff.

Data by YCharts

Even with the acquisitions, plenty of risks remain. Indeed, Boeing will receive a substantial ownership stake in Archer if the deal closes, diluting existing shareholders. And even $200 million doesn't come close to covering Archer's annual expenses, which totaled about $284 million last quarter alone.

Still, I really like where Archer is headed. Its stock may have lost half its value, but with that has also come significant progress in its business. For investors willing to tolerate risks, I think that progress is a good enough reason to buy shares at today's price.

Steven Porrello has positions in Archer Aviation and Joby Aviation. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.