Archer inventory 8% after stock sale, after acquisition of Los Angeles area airports

archer aviationThe company’s stock price plunged 8% after a weaker-than-expected third-quarter loss was offset by stock sales.

The company’s net loss was $129.9 million, narrower than FactSet’s estimate of a loss of $178.6 million.

However, Archer disclosed a $650 million stock offering for 81.25 million shares to support its $126 million acquisition of Los Angeles’ Hawthorne Airport as a base for its air taxi operations. Archer has been selected as the official air taxi provider for the 2028 Los Angeles Olympics.

This move will dilute the value of shares for existing shareholders. Archer’s weighted average outstanding shares totaled approximately 660.9 million shares, up from 397.5 million shares a year ago.

Interest in electric aircraft manufacturers has increased in recent months as major companies inch closer to certification. Earlier this week, Beta Technologies went public on the New York Stock Exchange.

Archer, like its competitors, is taking major steps toward Federal Aviation Administration certification, a key approval needed for commercial flight.

In September, Archer announced that the Midnight aircraft had reached a record altitude of 7,000 feet. This milestone comes about a month after the company completed its longest pilot flight.

Archer is betting big on building and deploying air taxis in the United Arab Emirates, a competitor joby aviation Partner with Saudi Arabia.

Archer said the company expects a loss of $110 million to $140 million in adjusted earnings before interest, taxes, depreciation and amortization for the current quarter, with a mid-point loss of $125 million. Analysts had expected a loss of $119.9 million, according to FactSet.

Earlier this week, Joby Aviation reported a higher-than-expected third-quarter loss. The stock has fallen 20% in the last week, and Archer has lost nearly a third of its value. Both companies more than doubled their corporate values ​​last year.