Investment Choices: Archer Aviation vs. Boeing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Source: Fool
- Archer Aviation's Potential: Focused on eVTOL aircraft, Archer reported a net loss of approximately $618.2 million in FY 2025, yet its $1 billion conditional purchase agreement with United Airlines indicates significant market potential, which could revolutionize urban transport if successful.
- Boeing's Recovery: Boeing achieved $89.5 billion in revenue for FY 2025, a 34.5% increase year-over-year, and reported a net income of $1.9 billion, marking a return to profitability after six years of losses, showcasing its resilience in the global aerospace market.
- Risk Comparison: Archer faces significant hurdles with FAA certification that could delay its commercial launch, while Boeing contends with strict regulatory oversight and environmental liabilities, although its diversified business structure provides some buffer against market downturns.
- Valuation Discrepancy: Archer commands a forward P/E ratio of 833x, significantly higher than Boeing's 31.6x, reflecting market expectations for future growth but also high risks, necessitating careful evaluation of long-term sustainability by investors.
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Analyst Views on ACHR
Wall Street analysts forecast ACHR stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 5.430
Low
8.00
Averages
12.40
High
18.00
Current: 5.430
Low
8.00
Averages
12.40
High
18.00
About ACHR
Archer Aviation Inc. is an aerospace company. It is engaged in providing customers with advanced aircraft and related technologies and services in the United States and internationally in both the commercial and defense sectors. Its commercial line of business consists of the sale of its commercial aircraft (Archer Direct), such as Midnight, to aircraft operators as well as technologies and services related thereto, including commercial launch (certification, testing, training, demonstration, market survey and early trial operations), and maintenance and repair. Its defense line of business consists of the sale of aircraft and related technologies for defense applications. Its initial product is intended to be a hybrid-propulsion, vertical take-off and landing (VTOL) aircraft. Its Midnight aircraft is designed around its proprietary 12-tilt-6 distributed electric propulsion platform. It carries four passengers plus a pilot. The aircraft is purpose-built for air taxi operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Archer vs. Kraken: Leaders in Emerging Technologies
- Market Outlook: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, and expects to commence commercial flights this year, with a market cap of approximately $4.2 billion, indicating its potential in the eVTOL market.
- Financial Performance: Kraken Robotics achieved sales of approximately CA$102 million (about $72 million USD) in 2025 and net income of CA$2.9 million (around $2.1 million) last year, showcasing strong growth momentum in the subsea technology sector.
- Strategic Partnerships: Archer collaborates with Anduril to develop hybrid VTOL aircraft for military use, while Kraken's battery and sensor technologies are utilized in Anduril's unmanned underwater drones, enhancing cross-selling opportunities across their customer bases.
- Market Competition: Despite Kraken's lower market capitalization, its commercialization ramp is significantly further along, and with Anduril set to accelerate production of underwater drone platforms in the coming years, Kraken is poised for powerful performance catalysts.
See More
Investment Choices: Archer Aviation vs. Boeing
- Archer Aviation's Potential: Focused on eVTOL aircraft, Archer reported a net loss of approximately $618.2 million in FY 2025, yet its $1 billion conditional purchase agreement with United Airlines indicates significant market potential, which could revolutionize urban transport if successful.
- Boeing's Recovery: Boeing achieved $89.5 billion in revenue for FY 2025, a 34.5% increase year-over-year, and reported a net income of $1.9 billion, marking a return to profitability after six years of losses, showcasing its resilience in the global aerospace market.
- Risk Comparison: Archer faces significant hurdles with FAA certification that could delay its commercial launch, while Boeing contends with strict regulatory oversight and environmental liabilities, although its diversified business structure provides some buffer against market downturns.
- Valuation Discrepancy: Archer commands a forward P/E ratio of 833x, significantly higher than Boeing's 31.6x, reflecting market expectations for future growth but also high risks, necessitating careful evaluation of long-term sustainability by investors.
See More
Archer Aviation Shares Drop 26% Amid Investor Concerns
- Stock Decline: Archer Aviation shares have fallen nearly 26% this year and over 18% this month, primarily due to investor concerns regarding ongoing losses and heavy spending, which has led to diminished market confidence.
- CEO's Optimistic Outlook: Despite the challenges, CEO Adam Goldstein remains confident in the electric vertical takeoff and landing aircraft technology, expecting the public to see the company's aircraft in operation during the second half of the year, drawing parallels to Tesla's early development stages.
- Significant Regulatory Progress: Archer recently advanced through Phase 3 of the FAA's aircraft certification process, becoming the first eVTOL developer to reach this stage, which paves the way for further regulator-supervised flight testing, indicating the company's maturity in technology and regulation.
- Severe Financial Situation: In Q1 2023, Archer reported a modest revenue of $1.6 million with a net loss of $217.7 million, highlighting the financial pressures faced by the company during its capital-intensive development phase, despite significant technological advancements.
See More
Archer Aviation vs. Kraken Robotics: Defense Stock Investment Analysis
- Market Performance Comparison: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, with a market cap of approximately $4.2 billion, indicating potential in the eVTOL aircraft sector; meanwhile, Kraken Robotics achieved sales of about CAD 102 million (approximately $72 million) in 2025, with a market cap of around $1.7 billion, showcasing strong growth in marine technology.
- Profitability Analysis: Kraken reported a net income of CAD 2.9 million (around $2.1 million) last year, while Archer posted a net loss of $618.2 million, highlighting Kraken's superior profitability, with a gross margin of 62.1% last year and guidance of 55%-60% for this year.
- Strategic Partnership Opportunities: Both companies have partnered with Anduril, with Archer developing military hybrid VTOL aircraft and Kraken's battery and sensor technologies utilized in Anduril's underwater drones, demonstrating synergistic effects in defense technology.
- Acquisition and Expansion Potential: Kraken is expanding its business through the acquisition of Covelya, expected to push its market cap closer to $2 billion, and the integration of Covelya's technologies will create cross-selling opportunities, enhancing market competitiveness, while Archer must overcome profitability challenges to achieve rapid growth.
See More
Archer Aviation's Progress and Challenges in Flying Cars
- Flying Car Ambitions: Archer Aviation's Midnight eVTOL aircraft aims to fly at speeds nearing 150 miles per hour above city streets, yet it has yet to complete a piloted transition flight, indicating its technology is still in early development.
- Poor Market Performance: Archer's stock is currently trading nearly 50% below its initial listing price, reflecting market concerns about its future profitability, as the company has not generated significant revenue and faces substantial financial pressures.
- Tight Financial Situation: Although Archer has approximately $1.8 billion in cash and investments, its multi-million dollar quarterly cash burn suggests it may require fresh capital within the next two to three years to sustain operations.
- FAA Certification Challenges: Archer has completed Phase 3 of the FAA's four-phase certification process, becoming the first eVTOL company to do so, but it still faces significant hurdles to obtain final certification and is lagging behind Joby Aviation, which is in a more advanced testing stage.
See More
Joby and Archer's Legal Dispute Escalates
- Escalating Legal Dispute: Joby has filed a lawsuit against Archer, alleging that former employee Kivork stole trade secrets and disclosed confidential information about strategic partners, highlighting the fierce competition between the two companies for FAA commercial approval.
- Court Ruling Impact: A Northern California judge dismissed several claims from Joby but allowed the misappropriation of confidential information against Archer to proceed, indicating that Joby still has a chance in the legal battle, which could affect its stock performance.
- Counterclaims and Rebuttals: Archer's counterclaims involve fraud and import misclassification, which were dismissed by the judge, yet Archer has the opportunity to refile by June 29, potentially impacting investor confidence in its future.
- Importance of FAA Approval: Despite the ongoing legal disputes, investors should focus on both companies' progress toward obtaining FAA commercial approval, as failure to secure this approval would have a far greater impact on stock prices than the legal issues at hand.
See More
Archer vs. Kraken: Leaders in Emerging Technologies
- Market Outlook: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, and expects to commence commercial flights this year, with a market cap of approximately $4.2 billion, indicating its potential in the eVTOL market.
- Financial Performance: Kraken Robotics achieved sales of approximately CA$102 million (about $72 million USD) in 2025 and net income of CA$2.9 million (around $2.1 million) last year, showcasing strong growth momentum in the subsea technology sector.
- Strategic Partnerships: Archer collaborates with Anduril to develop hybrid VTOL aircraft for military use, while Kraken's battery and sensor technologies are utilized in Anduril's unmanned underwater drones, enhancing cross-selling opportunities across their customer bases.
- Market Competition: Despite Kraken's lower market capitalization, its commercialization ramp is significantly further along, and with Anduril set to accelerate production of underwater drone platforms in the coming years, Kraken is poised for powerful performance catalysts.
See More
Investment Choices: Archer Aviation vs. Boeing
- Archer Aviation's Potential: Focused on eVTOL aircraft, Archer reported a net loss of approximately $618.2 million in FY 2025, yet its $1 billion conditional purchase agreement with United Airlines indicates significant market potential, which could revolutionize urban transport if successful.
- Boeing's Recovery: Boeing achieved $89.5 billion in revenue for FY 2025, a 34.5% increase year-over-year, and reported a net income of $1.9 billion, marking a return to profitability after six years of losses, showcasing its resilience in the global aerospace market.
- Risk Comparison: Archer faces significant hurdles with FAA certification that could delay its commercial launch, while Boeing contends with strict regulatory oversight and environmental liabilities, although its diversified business structure provides some buffer against market downturns.
- Valuation Discrepancy: Archer commands a forward P/E ratio of 833x, significantly higher than Boeing's 31.6x, reflecting market expectations for future growth but also high risks, necessitating careful evaluation of long-term sustainability by investors.
See More
Archer Aviation Shares Drop 26% Amid Investor Concerns
- Stock Decline: Archer Aviation shares have fallen nearly 26% this year and over 18% this month, primarily due to investor concerns regarding ongoing losses and heavy spending, which has led to diminished market confidence.
- CEO's Optimistic Outlook: Despite the challenges, CEO Adam Goldstein remains confident in the electric vertical takeoff and landing aircraft technology, expecting the public to see the company's aircraft in operation during the second half of the year, drawing parallels to Tesla's early development stages.
- Significant Regulatory Progress: Archer recently advanced through Phase 3 of the FAA's aircraft certification process, becoming the first eVTOL developer to reach this stage, which paves the way for further regulator-supervised flight testing, indicating the company's maturity in technology and regulation.
- Severe Financial Situation: In Q1 2023, Archer reported a modest revenue of $1.6 million with a net loss of $217.7 million, highlighting the financial pressures faced by the company during its capital-intensive development phase, despite significant technological advancements.
See More
Archer Aviation vs. Kraken Robotics: Defense Stock Investment Analysis
- Market Performance Comparison: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, with a market cap of approximately $4.2 billion, indicating potential in the eVTOL aircraft sector; meanwhile, Kraken Robotics achieved sales of about CAD 102 million (approximately $72 million) in 2025, with a market cap of around $1.7 billion, showcasing strong growth in marine technology.
- Profitability Analysis: Kraken reported a net income of CAD 2.9 million (around $2.1 million) last year, while Archer posted a net loss of $618.2 million, highlighting Kraken's superior profitability, with a gross margin of 62.1% last year and guidance of 55%-60% for this year.
- Strategic Partnership Opportunities: Both companies have partnered with Anduril, with Archer developing military hybrid VTOL aircraft and Kraken's battery and sensor technologies utilized in Anduril's underwater drones, demonstrating synergistic effects in defense technology.
- Acquisition and Expansion Potential: Kraken is expanding its business through the acquisition of Covelya, expected to push its market cap closer to $2 billion, and the integration of Covelya's technologies will create cross-selling opportunities, enhancing market competitiveness, while Archer must overcome profitability challenges to achieve rapid growth.
See More
Archer Aviation's Progress and Challenges in Flying Cars
- Flying Car Ambitions: Archer Aviation's Midnight eVTOL aircraft aims to fly at speeds nearing 150 miles per hour above city streets, yet it has yet to complete a piloted transition flight, indicating its technology is still in early development.
- Poor Market Performance: Archer's stock is currently trading nearly 50% below its initial listing price, reflecting market concerns about its future profitability, as the company has not generated significant revenue and faces substantial financial pressures.
- Tight Financial Situation: Although Archer has approximately $1.8 billion in cash and investments, its multi-million dollar quarterly cash burn suggests it may require fresh capital within the next two to three years to sustain operations.
- FAA Certification Challenges: Archer has completed Phase 3 of the FAA's four-phase certification process, becoming the first eVTOL company to do so, but it still faces significant hurdles to obtain final certification and is lagging behind Joby Aviation, which is in a more advanced testing stage.
See More
Joby and Archer's Legal Dispute Escalates
- Escalating Legal Dispute: Joby has filed a lawsuit against Archer, alleging that former employee Kivork stole trade secrets and disclosed confidential information about strategic partners, highlighting the fierce competition between the two companies for FAA commercial approval.
- Court Ruling Impact: A Northern California judge dismissed several claims from Joby but allowed the misappropriation of confidential information against Archer to proceed, indicating that Joby still has a chance in the legal battle, which could affect its stock performance.
- Counterclaims and Rebuttals: Archer's counterclaims involve fraud and import misclassification, which were dismissed by the judge, yet Archer has the opportunity to refile by June 29, potentially impacting investor confidence in its future.
- Importance of FAA Approval: Despite the ongoing legal disputes, investors should focus on both companies' progress toward obtaining FAA commercial approval, as failure to secure this approval would have a far greater impact on stock prices than the legal issues at hand.
See More
