Archer Aviation is working to launch an air taxi and air taxi service.
The company’s vertical lift aircraft is constantly working to obtain the necessary approvals for commercial use.
Archer Aviation is making significant progress in its bid to establish itself as a leading air taxi company in the aerospace industry.
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Actions of archer aviation(NYSE: ACHR) They have fallen approximately 45% from their recent highs. The decline has been quite rapid and has occurred since early October 2025. The stock is now down 22% over the past year. And yet it is still up almost 190% over the last three years.
It’s not unusual for startups like Archer Aviation to experience dizzying price swings. So the question is: is this company worth buying now? Below are the purchase, sale and holding cases for Archer Aviation.
It’s easier to quantify the types of investors who shouldn’t buy Archer Aviation and why. Regardless of the opportunities ahead for the company, it is currently still in startup mode. It has one plane, but is still seeking regulatory approval for commercial use and increasing its production capacity. Although it seems unlikely, it is very possible that the company will not be able to successfully bring its Midnight aircraft to market.
Image source: Getty Images.
In addition to execution risk, investors should consider that Archer Aviation is incurring significant losses despite the continued need for substantial capital investment in the business. This is not surprising, given the initial stage of development of the business. But only the most aggressive investors should buy money-losing startups trying to bring new technology to market. If you are a risk-averse investor, you should stay away from Archer Aviation.
If you think air taxis will change the way people travel in big cities, then you might want to take a ride by investing in Archer Aviation. However, as noted, you need to be able to handle some turbulence. That’s normal in startups.
The most exciting thing about Archer Aviation is the material progress it is making toward its first commercial flight. The company’s Midnight aircraft is flying successfully and passing the regulatory process. The company has a partner in Abu Dhabi, where the Midnight aircraft is expected to carry its first commercial customer. After Abu Dhabi, Archer has partners in Japan, Korea and Indonesia waiting in the wings.
Meanwhile, in the United States, Archer Aviation plans to operate its own air taxi services in major cities, especially New York and California. It recently agreed to acquire control of an airport in California that will act as a business center in the future. Preparations for commercial operation in the US market have also included obtaining regulatory approval to operate an airline and regulatory approval to train pilots.
Assuming all goes well from a business perspective, Archer Aviation is set to launch air taxi services both internationally and domestically as soon as it gets the final go-ahead from regulators. If execution is strong, Archer Aviation could see a major upgrade for its stock as it establishes a foothold in a new niche within the aerospace industry.
What if you bought Archer Aviation at the recent high and it is now down 45%? You have to make a couple of important decisions.
First of all, if this level of price volatility is too much for you, owning a stock like Archer Aviation may not be a good idea. You may want to cut your losses and find a less risky investment opportunity.
You may also want to sell your shares to capture the loss if you have gains elsewhere in your portfolio that you want to offset for tax purposes. Just make sure you don’t buy it again within 30 days, or you’ll void the tax benefit by breaking the tax rules.
ACHR data by YCharts
That said, if you still believe in the story and can handle a volatile stock, you might be better off sticking around. Stocks of startups can go up and down quickly, and getting rid of them now would leave you with the difficult choice of deciding when the time is right to get back in.
It’s probably best to think of Archer Aviation as a long-term commitment and ride out the tough times. After all, this is an aggressive growth investment. Large reductions are quite common.
Deciding to buy, sell or hold with Archer Aviation involves some easy decisions and some that are more challenging. If you’re risk averse, you probably shouldn’t even consider owning these high-risk stocks. It is only suitable for more aggressive investors and even then only for those who are willing to maintain an investment for the long term.
However, Archer Aviation is making significant progress toward its ambitious goal of developing an air taxi and air taxi service. It may take some time, but successful execution of the administration’s long-term goals could make it a major player in the aerospace industry.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Archer Aviation Stock: Buy, Sell or Hold? was originally published by The Motley Fool
