Why Arrow Aviation Stocks Soared This Week
Archer Aviation (NYSE: ACHR ) The stock posted strong gains in last week’s trade. The company’s share price closed up 13 percent compared to last week’s market close, according to the data obtained. S&P Global Market Intelligence. In the same period S&P 500 The index increased by 1.7%, and in Nasdaq Composite Index rose 0.6%.
Earlier this week, the inauguration of President Trump started a rally for the broader market, and Archer Aviation benefited from the rally. In addition to the gains for the broader market, the stock got a boost from the excitement surrounding the company defense industry Motivation.
President Trump was officially inaugurated and returned to office on January 20. While the stock market was closed for the day because the inauguration fell on the federal Martin Luther King Jr. holiday, stocks posted strong gains in Tuesday’s trading. Archer Aviation and many others Growth stocks I’ve had a particularly significant gain.
Many investors expect the new Trump administration to reduce regulations on various industries and introduce other growth policies, and stocks have improved in line with the sentiment. Archer Aviation stock also saw a trade-oriented boost in the past week.
On January 22, the company issued a press release announcing that retired Lt. Gen. Scott Howell had joined its advisory board. Howell provides insight and support to Archer Defense – the company’s newly formed defense division focused on developing next-generation aircraft for military applications.
Archer’s aviation business is still in pre-revenue mode, but the company has exciting growth opportunities in the commercial aviation and defense markets. The company is ramping up manufacturing operations to produce midnight-flying electric vehicles for the commercial market, and has announced a partnership with Anduril to develop hybrid-powered aircraft for the defense industry.
Pending the necessary regulatory approvals, commercial flights for Archer’s midnight craft look set to begin this year. If so, the company will quickly move from zero sales to posting rapid revenue growth. Archer says it has more than $6 billion worth of customer orders for its midnight vehicles. It may take longer for defense industry sales to take off, but contract wins for the Defense Department could be the reason for the stock’s explosion.