Cathie Wood’s ARK Invest Scoops Up Archer Aviation Shares After Earnings: $6.3M Bet On eVTOL Growth Optimism
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Archer beat Q3 revenue estimates but reported a wider-than-expected loss.
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Following the stock’s decline, Cathie Wood’s ARK funds bought more than 1.34 million shares.
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Archer has FAA approval for piloted Midnight aircraft operations in Los Angeles.
Cathie Wood’s ARK Invest capitalized on a post-earnings dip, scooping up a combined 1,341,239 shares of Archer Aviation Inc. (ACHR) valued at a potential $6.3 million across its flagship exchange-traded funds on Tuesday.
Archer Aviation stock edged up 0.2% overnight Tuesday after a 2% drop in the regular session.
Cathie Wood’s ARK Funds Buy The Dip In Archer Aviation
Archer kicked off the week by reporting third-quarter (Q3) results that showed revenue beating consensus expectations at $5.1 million, up from the $3.57 million estimated by Fiscal.ai. However, the bottom line missed expectations as its net loss widened to $274.5 million, to a loss per share of $0.35 against a $0.34 estimate.
After the earnings, Archer’s stock fell overnight on Monday, prompting Cathie Wood’s ARK funds to buy more shares. The ARK Innovation ETF (ARKK) made the largest purchase, adding 1,021,635 shares. The ARK Autonomous Technology & Robotics ETF (ARKQ) piled in 147,118 shares, while the ARK Space Exploration & Innovation ETF (ARKX) added 172,486 shares, showing continued confidence in the eVTOL (electric vehicle takeoff and landing) company’s long-term prospects.
FAA Approvals, Upcoming Boeing Acquisition Boost Archer’s Prospects
Despite missing earnings estimates, Archer CEO Adam Goldstein remained confident about Archer’s growth during the Q3 earnings call and highlighted key progress. The company ended September with $1.4 billion in cash, cash equivalents, and short-term investments.
Archer’s Midnight aircraft received a Market Survey Special Airworthiness Certificate from the Federal Aviation Administration (FAA) in Los Angeles, allowing the company to begin piloted flights and prepare for urban air taxi trials ahead of the LA28 Olympic Games.
Goldstein also provided an encouraging update on Archer’s pending acquisition of Wisk, SkyGrid, and Insitu from The Boeing Co. (BA). “When we announced the transaction in August, we said we expected to close by the end of the year. Since then, the team has worked through nearly 20 governmental and third-party approvals and one remains, and we believe closing will be soon.”
