Speculators moved back into the market with some force on Friday bidding shares of Archer Aviation almost 20% higher.
Archer Aviation is a leading innovator in urban air mobility, specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft. The company aims to revolutionize urban transportation by providing sustainable, efficient, and quiet airborne solutions to reduce traffic congestion and environmental impact.
Archer’s flagship eVTOL aircraft, designed for short distance flights, combines advanced battery technology and aerodynamic engineering for safe and cost-effective operation.
With partnerships in the aviation and technology sectors, Archer is paving the way for the future of air taxis, targeting commercial operations in metropolitan areas to offer fast and eco-friendly transportation alternatives.
Shares of Archer Aviation are coming off a four-day losing streak after the stock dropped 17% this week. It was the stock’s first four-day losing streak since December 12. The December 12 drop represented a similar 17% drop in the stock.
These sharp declines in a stock of Archer’s volatile nature are reasonably normal as they represent the ebb-and-flow of investments into a “discovery” stock.
A discovery stock is a small publicly traded company in the early stages of gaining market attention and investor interest. The companies usually offer a unique or groundbreaking product, service, or market opportunity.
These stocks are typically under-the-radar companies that have not yet been widely covered by analysts or the financial media, giving them the potential for significant upside as more investors become aware of their growth prospects.
Shares of Archer Aviation have been in a short-term volatility rally as the stock launched from $3 to $11 in less than two months.
The rush of buying interest in the stock follows headlines of the company’s advancement of products and FAA acknowledgements.
Shares have also benefitted from Cathie Wood’s interest in the company after it was announced that one of her Ark Investment funds had sole shares of Tesla to purchase shares of Archer Aviation.
From a technical perspective, the recent 17% pullback in the stock represents yet another “Buy the Dip” opportunity for the stock.
Today’s close looks to strike a new all-time high for Archer shares after their fast dip below the psychologically significant $10 price level.
Investors should expect to see more trading volume move into the name next week as trading begins to return to normal volume levels.
With firm technical momentum in place for Archer Aviation, investors should expect to see this stock maintain its rapid rally towards a target of $20.
Investors should keep in mind that Archer Aviation shares are highly speculative. The stock is in the “Discovery” phase and lacks fundamental operating results.
