Why Archer Aviation Inc. (ACHR) Is Among Last Week’s Biggest Losers?

We recently published a list of These 10 Firms Were Last Week’s Biggest Losers. In this article, we are going to take a look at where Archer Aviation Inc. (NYSE:ACHR) stands against other firms that were last week’s biggest losers.

Ten companies fell significantly last week, mirroring a broader market downturn, as investors sold off positions following disappointing news and data that weighed heavily on market sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

To come up with this week’s top decliners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A technician assembling an electric aircraft, highlighting the company’s manufacturing capabilities.

Archer Aviation Inc. (NYSE:ACHR)

Archer Aviation Inc. (NYSE:ACHR) saw its share prices tumble by 7.24 percent over the past five trading days, ending last week at $8.97 apiece versus the $9.67 week-on-week after earning a downgraded rating from JP Morgan.

In a report released on Friday, JP Morgan downgraded Archer Aviation’s rating from an “overweight” rating to “neutral,” reflecting a more conservative outlook, noting that the market was already pricing in Archer Aviation’s achievements that have yet to materialize.

According to JPMorgan, Archer Aviation Inc.’s (NYSE:ACHR) current trading levels indicate that it has already obtained full certification for its electric vertical takeoff and landing (eVTOL) aircraft, a milestone that it has yet to achieve.

The certification was crucial to the company’s operational success of its air taxi services.

Overall, ACHR ranks 6th on our list of firms that were last week’s biggest losers. While we acknowledge the potential of ACHR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.