Why Archer Aviation Inc. (ACHR) Went Down On Monday?

We recently published a list of 10 Stocks Drop The Most Amid Investor Caution. In this article, we are going to take a look at where Archer Aviation Inc. (NYSE:ACHR) stands against other stocks that drop the most amid investor caution.

Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.

The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.

To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Note that the companies we covered in-depth last Friday have been excluded from the list.

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

Archer Aviation Inc. (NYSE:ACHR)

Archer Aviation dropped for a second day on Monday, slashing 8.54 percent to finish at $8.35 each as investors repositioned their portfolios ahead of its earnings release on Thursday, February 27, where investors will be looking out for prospects about its business for the full year and whether or not it would beat analysts’ expectations.

For the fourth quarter of 2024, analysts expect the company to register a $0.26 loss per share.

Earlier, ACHR founder Adam Goldstein said that the company was “ready to launch” its flying taxis in Abu Dhabi this year.

ACHR was backed by automaker Stellantis and Abu Dhabi sovereign wealth fund Mubadala. It was among the first few companies to get the first commercially viable electric vertical take-off and landing (eVTOL) vehicles off the ground.

Overall, ACHR ranks 8th on our list of stocks that drop the most amid investor caution. While we acknowledge the potential of ACHR as an investment, our conviction lies in the belief that some 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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