Archer stock tanks 12% after share sale, LA-area airport purchase

Okçu AviationIts shares fell 12% after a share sale overshadowed a smaller-than-expected loss in the third quarter.

company sent The $129.9 million net loss is narrower than FactSet’s $178.6 million loss estimate.

However, Archer announced a sum of $650 million stock offer in exchange for 81.25 million shares to support its $126 million acquisition. Hawthorne Airport There is a hub for air taxi operations in Los Angeles. Archer has been selected as the official air taxi provider. 2028 Olympics In Los Angeles.

The move will reduce the value of the stock for existing shareholders. The weighted average value of Archer shares rose to about 660.9 million from 397.5 million a year ago.

Interest in electric aircraft manufacturers has increased in recent months as major players approach certification. Earlier this week, Beta Technologies went public on the NYSE.

Archer, like its rivals, is making major strides toward achieving Federal Aviation Administration certification, a key approval required for commercial flight.

Midnight flying peaked in September, Archer said. Record altitude of 7,000 feet. The milestone came about a month after the company met its goal. longest piloted flight.

Archer has invested heavily in building and deploying air taxis. United Arab Emirates as a rival Joby Aviation team up Saudi Arabia.

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

Earlier this week, Joby Aviation reported a larger-than-expected third-quarter loss. Archer lost almost a third of its value as shares tumbled 20% last week. Both companies have more than doubled in value in the past year.