Josh Brown, CEO of Ritholtz Wealth Management, joins CNBC's "Halftime Report" to detail his latest speculative buy.
Archer Aviation is a high-risk, high-reward play, driven by a massive eVTOL market opportunity and strong investor optimism despite being pre-revenue. The company's solid liquidity, operational milestones, and $6 billion order backlog provide a decent runway and future growth potential, though profitability remains distant. The underappreciated defense partnership with Anduril offers near-term revenue potential and offsets commercial delays, enhancing Archer's long-term prospects.
Trump's executive order sparks 11.7% surge in ACHR as regulatory easing boosts momentum for eVTOL certification.
For years, the promise of electric air taxis existed primarily in prototypes and investor presentations. In 2025, that reality has changed, and the electric vertical takeoff and landing (eVTOL) industry is now poised to accelerate dramatically.
Part of the order will also allow manufacturers to test flying cars and remove regulatory barriers that have kept most grounded.
Archer Aviation remains a buy despite increased volatility and a higher valuation, as strong technicals show bulls are in control. Recent executive action and successful flight tests have improved sentiment, but revenue estimates have been cut, and execution risk remains high. The Company's strong cash position and minimal recent dilution provide a financial cushion, supporting its path toward commercial viability.
ACHR stock has soared 181% in a year, but its lack of revenues and negative ROIC raise caution amid eVTOL momentum.
Archer Aviation NYSE: ACHR has hit an important new stage in getting its Midnight electric air taxi ready for passengers. The company announced in early June that its innovative aircraft had started piloted flight tests.
Archer Aviation NYSE: ACHR recently found itself in the spotlight after a critical report from short-seller Culper Research on May 20th caused its stock to dip. However, in the days since, Archer's shares have shown signs of stabilizing.
ACHR outpaces JOBY in terms of stock price gain. Both eVTOL firms face steep hurdles in a pre-revenue, capital-heavy urban air mobility race.
When I'm thinking about potential sectors of the economy that could provide meaningful upside for investors looking to put some capital to work for two or three decades (yes, that long-term), I like to think about what pain points society has that companies with revolutionary technologies are looking to solve.
Investors interested in ACHR stock should wait for a better entry point, considering its negative ROIC and a downward revision in its earnings estimates.