Why Archer Aviation Stock Took Flight on Tuesday
Key Points
Cathie Wood has been scooping up shares of Archer Aviation.
Several of Ark Invest's flagship funds bought more than 1 million shares in all yesterday, worth more than $4.5 million.
The news comes on the heels of Archer's big announcement last week, but it still has regulatory hurdles to clear.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
Shares of Archer Aviation (NYSE:ACHR) charged sharply higher Tuesday morning, gaining as much as 9.6%. By the time the market closed, the stock was still up 7.4%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The catalyst that sent the electric vertical takeoff-and-landing (eVTOL) aircraft specialist higher was news of opportunistic buying by a prominent name on Wall Street.
Image source: Archer Aviation.
Cathie Wood hits buy
Reports emerged this week that Cathie Wood, CEO of Ark Investment Management, has been scooping up shares of Archer Aviation. ARK Autonomous Technology & Robotics fund added 781,854 shares on Monday, while ARK Space Exploration & Innovation fund purchased 379,750. In all, ARK scooped up more than 1 million shares yesterday, worth nearly $4.6 million as of Monday's closing price.
Archer unveiled plans last week to establish air taxi networks across Houston, Dallas-Fort Worth, and Austin. The goal of this venture is to give commuters in "America's fastest-growing megaregion a way to skip traffic and turn hour-long drives into 10- to 20-minute flights on its all-electric Midnight air taxi." By connecting major airports to associated business districts and coastal destinations, Archer is tapping into a desire to avoid traffic, saving users time and money.
To be clear, Archer will require a sign-off from the Federal Aviation Administration (FAA) for its Midnight air taxi, which is working its way through the final stages of the process. The company won't generate any revenue from its proposed air taxi business until regulatory approval has been granted.
Change is coming. Archer's recent deal with Boeing will expand its potential and add much-needed revenue to the mix, though the company will likely remain unprofitable for the foreseeable future.
As such, Archer Aviation stock has shed nearly 63% of its value over the past year as investors weigh the high-risk, high-reward nature of owning shares.
Should you buy stock in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $344,608!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,222!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 27, 2026.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.
Recommended Articles
