Why Is Archer Aviation Stock Falling on Wednesday?
Key takeaways
- Archer Aviation's stock price fell on Wednesday due to the acquisition agreement with Boeing, which may impact its profile and ETF exposure.
- Archer Aviation's stock price fell 6.77% to $6.33 on Wednesday.
- The profitable Insitu unit generates over $200 million in annual revenue.
- Archer Aviation's stock price is trading 21.7% above its 20-day SMA ($5.19) and 20.9% above its 50-day SMA ($5.22).
What happened
Archer Aviation Inc. (NYSE: ACHR) stock traded lower on Wednesday after the company signed agreements to acquire Wisk Aero, SkyGrid, and Insitu from Boeing Co. (NYSE: BA).
Why it matters
The acquisition could significantly change Archer Aviation's profile, with the profitable Insitu unit generating over $200 million in annual revenue and expected to contribute positive free cash flow.
Short-term and longer-term
Short-term. Archer Aviation's stock price fell on Wednesday due to the acquisition agreement with Boeing, which may impact its profile and ETF exposure.
Longer-term. The acquisition agreement between Archer Aviation and Boeing Co.