Key Points

Archer Aviation shares have declined more than 28% over the past year.
The company maintains a strong $2 billion cash position, low debt, and is advancing toward FAA certification while preparing commercial launches in the UAE.
Competitor Joby Aviation leads in the FAA process, and first-mover status in the U.S. eVTOL market could deliver a major edge.

Shares of Archer Aviation (NYSE: ACHR), the eVTOL developer, hover around $6.50, marking a drop exceeding 28% in the past year. Trading under $7, the stock might appear as a bargain to some investors, but does it warrant a purchase?

Archer Aviation's Solid Cash Position

Archer wrapped up 2025 with roughly $2 billion in cash and short-term investments, offering a multi-year runway at its current burn rate. Debt levels remain negligible.

Image source: Archer Aviation.

Progress extends beyond finances, with commercial operations nearing liftoff in the United Arab Emirates. Officials there have pinpointed 10 starting vertiport locations, and Abu Dhabi Aviation has partnered as Archer's initial regional operator.

Of key importance, Archer has passed Stage 3 of 5 in FAA Type Certification, moving U.S. services within reach.

Joby Aviation Holds the Lead

That said, Archer still trails Joby Aviation (NYSE: JOBY), its main rival, which is immersed in Stage 4. Being first to market in this space promises a substantial lead.

With a nearly $5 billion market cap, Archer's valuation feels detached from fundamentals, and the recent slide has not made it cheap enough amid the risks. eVTOL enthusiasts may find Joby the superior choice.

Time to Buy Archer Aviation Shares?

Archer offers financial stability and regulatory momentum, yet competition from frontrunners like Joby tempers the appeal. Investors should weigh the certification timeline and market dynamics carefully before diving in.