Archer Aviation (NYSE: ACHR) The stock has seen strong gains over the past week’s trading. The company’s share price closed down 13% from the close of the previous week’s market, according to data from S&P Global Market Intelligence. At the same period, the S&P 500 The index increased by 1.7%, and the Nasdaq Composite the index was up 0.6%.
President Trump’s inauguration earlier this week kicked off gains for the broader market, and Archer Aviation benefited from the rally. In addition to gains for the broader market, the stock got a boost from the excitement surrounding the company defense industry initiatives.
President Trump was formally inaugurated and returned to office on January 20. While the stock exchange was closed that day because the inauguration fell on the Martin Luther King Jr. federal holiday. Archer Aviation and many others growth actions enjoys particularly pronounced gains.
Many investors expect the new Trump administration to reduce regulations in various industries and introduce other pro-growth policies, and stocks have had a boost in conjunction with sentiment. Archer Aviation shares also saw a specific business catalyst in the last week.
On Jan. 22, the company issued a press release announcing that retired Lt. Gen. Scott Howell had joined its advisory board. Howell will provide insight and support for Archer Defense – the company’s new defense unit focused on manufacturing next-generation aircraft for military applications.
Archer Aviation’s business is still in a pre-revenue state, but the company has exciting growth opportunities in the commercial flight and defense markets. The company is ramping up manufacturing operations to produce its Midnight electric flying vehicles for the commercial market, and announced late last year that it had partnered with Anduril to create hybrid aircraft for the defense industry.
Pending the necessary regulatory approvals, it looks like commercial flights for Archer’s Midnight craft will begin this year. If so, the company will likely quickly switch from zero sales to posting rapid revenue growth. Archer says it already has more than $6 billion in customer orders for its Midnight vehicles. Sales wins for the defense industry could take longer to emerge, but contract wins for the Defense Department could be an explosive catalyst for the stock.
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2025-01-26 01:41:00
