Archer Aviation Proposes New York Air-Taxi Network: Buy the Stock Now?

Core Viewpoint - Archer Aviation Inc. is set to launch an air taxi network in New York City in collaboration with United Airlines, aiming to transform urban mobility with its Midnight eVTOL aircraft, offering flights from Manhattan to nearby airports in 5-15 minutes [1][2]. Company Performance - Archer Aviation's stock has increased by 78.1% over the past year, outperforming the Zacks Aerospace-Defense industry's growth of 1.8%, the broader Aerospace sector's gain of 5.5%, and the S&P 500's return of 4.6% during the same period [3]. - Other industry players, such as Rocket Lab USA and Embraer, have also shown significant stock performance, with increases of 406.8% and 73.3%, respectively, over the past year [4]. Strategic Developments - Archer Aviation has made significant strides in bringing its Midnight eVTOL aircraft to market, including key agreements that enhance its position in the aerospace sector [5]. - In March 2025, Archer signed an agreement with Ethiopian Airlines, marking it as the second customer for the Midnight jet under the "Launch Edition" program [6]. - A partnership with Palantir Technologies was announced in March, aimed at building AI foundations for next-generation aviation technologies and enhancing manufacturing capabilities [7]. - The "Launch Edition" commercialization program for the Midnight aircraft was introduced in February, with Abu Dhabi Aviation as its first customer [8]. Market Outlook - The demand for sustainable and low-carbon transport solutions is increasing due to urban traffic congestion, presenting growth opportunities for eVTOL aircraft like Midnight. The global eVTOL market is projected to grow at a CAGR of 55% from 2025 to 2034 [11]. - As Archer begins delivering its eVTOL aircraft, it is expected to generate significant revenues, leading to gross profit and long-term growth [12]. Earnings Estimates - The Zacks Consensus Estimate for Archer's earnings indicates year-over-year improvements for the first quarter and full year of 2025, with a similar trend expected for 2026 [13]. - The earnings estimates for the first quarter of 2025 are projected at -0.21, with a year-over-year growth estimate of 8.7% [14]. - However, there has been a downward revision in the consensus estimates, reflecting declining investor confidence in the stock's earnings growth capabilities [15].