Fed Hike Hits Archer Aviation, but ACHR Stock Bounces in Pre

Archer Aviation (ACHR) acquired Boeing's Wisk Aero, Insitu, and SkyGrid in an all-stock deal, giving Boeing a 16.5% stake. The acquisition aims to diversify Archer's revenue and boost its margin profile, with Insitu generating $200M+ annually. Archer's stock may face dilution but gains a strategic partner in Boeing.

Archer Aviation's stock rose 24.6% in August, outperforming the S&P 500 and Nasdaq. The gain followed a deal to acquire Boeing's Wisk Aero, SkyGrid, and Insitu subsidiaries, with Boeing receiving a 16.5% stake in Archer. Insitu generates $200M in annual sales. Archer's stock is down 24% year-to-date but fell 1.2% in early September.

Archer Aviation (ACHR) reported $5M in Q2 revenue from non-passenger services, with shares down 61% from 52-week high. The company predicts its eVTOL aircraft, Midnight, will carry its first U.S. paying passenger before 2028. Archer is in the final FAA certification phase and has secured partnerships, but faces widening losses and cash burn. The first passenger could be outside the U.S., potentially in the UAE. ACHR has a market cap of $4.4B and $1.6B in cash.

Archer Aviation (ACHR) is a frontrunner in the electric vertical takeoff and landing (eVTOL) market, aiming to certify its Midnight aircraft. The company is expanding into defense and commercial aviation by acquiring three businesses from Boeing (BA), including profitable Insitu. Archer's quarterly losses are widening, raising concerns about shareholder dilution. Success depends on FAA certification and scaling production, which could take years.

U.S. stock futures were mixed on Tuesday, with Nasdaq and Russell 2000 futures up 0.1%, Dow futures down 0.1%, and S&P 500 futures flat. Investors await July CPI data and geopolitical tensions impact sentiment. Key earnings reports include SMCI, CRWV, CAVA, LITE, and SLS. NVDA labeled AI data centers as investable assets, INTC upsized its share sale to $20B, and RIOT secured a $9.1B deal. RKLB shares fell despite a revenue beat, ASTS extended selloff, and SPCX faced lockup expiration pressures.

Archer Aviation (ACHR) shares rose 36% in a month, driven by acquisitions from Boeing, including Insitu, and a successful test flight. Boeing will take a 20% stake. Archer aims to diversify into defense and AI, but faces high losses and cash burn. Q2 revenue was $5M, with a net loss of $263.2M. Cathie Wood's ARK increased its stake.