Cathie Wood Is Buying the Dip in Archer Aviation Stock. Should You?

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While the sector promises long-term disruption, companies are still navigating regulatory, manufacturing, and cash-burn challenges that make short-term volatility common.One company in the spotlight is Archer Aviation (ACHR), which drew renewed attention when Cathie Wood’s ARK Invest just bought more than 3 million shares. The buys arrived the same day Archer reported Q3 results and announced plans to acquire Hawthorne Airport for $126 million, following a $650 million equity raise that lifted liquidity above $2 billion.Google Has a ‘Secret Weapon’ That Could Make GOOGL Stock One of the Best AI Buys for 202630,000 Reasons It May Be Time to Sell Amazon Stock NowQualcomm Wants to Beat Nvidia in AI Chips, but QCOM Stock Needs to Win Over Wall Street FirstMarkets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.For investors wondering whether ARK’s move signals a buying opportunity, here’s a closer look at ACHR.Based in California, Archer Aviation is a startup developing electric “air taxi” aircraft. Its four-seat Midnight eVTOL is designed for short urban hops and is still in testing. The company aims to launch a sustainable city-flight network, but it has no commercial flights or revenue yet. It has drawn attention with partnerships, e.g., Korean Air, and infrastructure moves like acquiring Hawthorne Airport control, but remains in a high-investment, pre-revenue stage.With a market cap of around $5.5 billion, Archer’s stock has been wildly volatile year-to-date (YTD) in 2025. After reaching its 52-week high of $14.62 mid-year, it has since slid toward the high-$7 to low-$8 range. In fact, the shares have fallen about 43% from their early-October peak. This drop shows that investors are nervous because Archer still doesn’t have FAA approval, and its losses were larger than expected, even though it did a bit better than last quarter. Investors should note that the stock’s ups and downs are normal for early-stage air taxi companies, as they have big future potential but aren’t making money yet.Talking about its valuation, ACHR stock presents a bit of a puzzle. Its price-to-book (P/B) ratio of 3.4x looks low compared to the sector median of 6.8x, suggesting it might be undervalued. However, the enterprise-value-to-sales (EV/Sales) ratio above 15x makes it appear expensive.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,889.50 +18.00 (+0.26%)Dow Futures48,088.00 +58.00 (+0.12%)Nasdaq Futures25,768.75 +128.00 (+0.50%)Russell 2000 Futures2,465.20 -1.00 (-0.04%)VIX17.28 -0.32 (-1.82%)Gold4,122.60 +6.30 (+0.15%)PortfolioSign in to access your portfolioSign inTop gainersEWTX Edgewise Therapeutics, Inc. 21.48 +3.20 (+17.51%)LB LandBridge Company LLC 85.55 +10.55 (+14.07%)DNLI Denali Therapeutics Inc. 17.58 +1.98 (+12.69%)APGE Apogee Therapeutics, Inc. 62.95 +6.18 (+10.89%)CWAN Clearwater Analytics Holdings, Inc. 18.40 +1.71 (+10.25%)Top losersLIF Life360, Inc. 72.79 -20.51 (-21.98%)CRWV CoreWeave, Inc. 88.39 -17.22 (-16.31%)BTDR Bitdeer Technologies Group 15.02 -2.63 (-14.90%)CENX Century Aluminum Company 27.88 -4.43 (-13.71%)WULF TeraWulf Inc. 12.37 -1.93 (-13.50%)Most activeOPEN Opendoor Technologies Inc. 8.48 +0.51 (+6.40%)PLUG Plug Power Inc. 2.5300 -0.0300 (-1.17%)NVDA NVIDIA Corporation 193.16 -5.89 (-2.96%)BBAI BigBear.ai Holdings, Inc. 6.06 +0.35 (+6.13%)PFE Pfizer Inc. 25.51 +1.12 (+4.59%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersAMD Advanced Micro Devices, Inc. 237.52 -6.46 (-2.65%)BTC-USD Bitcoin USD 103,367.16 -1,914.51 (-1.82%)MRK Merck & Co., Inc. 90.95 +4.20 (+4.84%)MRNA Moderna, Inc. 26.41 +1.65 (+6.66%)ETH-USD Ethereum USD 3,441.19 -121.86 (-3.42%)Top economic events