Is Archer Aviation Stock a Buy?
With shares up by an impressive 307% over the last 12 months, Archer Aviation (NYSE: ACHR) is starting to catch the market's attention as it aims to help pioneer electric vertical takeoff and landing vehicles (eVTOLs). These are essentially electric helicopters that could revolutionize the urban transportation industry by allowing people to bypass city traffic while reducing global reliance on fossil fuels.
That said, when it comes to buying a stock, investors shouldn't get carried away by the exciting technology story. Often, a company's less glamorous fundamentals will give a better idea about how it will perform over the long haul. Let's dig deeper into Archer Aviation.
Analysts are optimistic about future transportation technologies, including urban air mobility. Morgan Stanley expect this opportunity to be worth $1.5 trillion by 2040 as battery technology improves and companies overcome regulatory hurdles. While eVTOLs will only represent a fraction of the total market, that is probably enough room for early movers to establish a long-term niche.
Source Fool.com
