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Archer Aviation Plunges 27% for the Week as Loss and Equity Sale Rattle Investors

A dilutive $650 million stock sale after a wider loss drove the retreat.

Overview

  • Archer Aviation shares fell 27.1% over the week, compared with a 1.6% decline for the S&P 500 and a 3% drop for the Nasdaq Composite.
  • The company reported a third-quarter net loss of $129.9 million on zero revenue, which was larger than anticipated.
  • Archer raised $650 million by selling newly issued shares, heightening investor concerns about dilution.
  • The company disclosed a $126 million all-cash deal to acquire Hawthorne Municipal Airport near LAX to serve as a base of operations.
  • Broader market pressure tied to worries about stretched AI valuations and a report of 153,000 U.S. layoffs in October added to selling pressure.