Archer Aviation Inc. closed Friday's trading session with a significant 12.5% gain, reaching $7.30 per share. Trading volume was robust at approximately 50.5 million shares, indicating strong investor interest.
Small-Cap Rotation Fuels Gains
The advance occurred amid a broader market shift, with capital flowing into smaller, more volatile companies while technology names lagged. This rotation propelled the Russell 2000 small-cap index ETF higher by roughly 3.6% for the day. Industry peers Joby Aviation and Vertical Aerospace also posted gains of nearly 11%.
ARK Investment Takes a Position
A key development for Archer was a recent regulatory filing by ARK Investment Management LLC, led by Cathie Wood. On February 3, ARK disclosed a passive 5.40% ownership stake in the company, equivalent to over 35 million shares.
Archer continues to develop its "Midnight" electric vertical takeoff and landing (eVTOL) aircraft, designed for short urban air-taxi routes. The company has secured a partnership with Serbia, which holds an option to purchase up to 25 aircraft. Analysts note the next critical milestone is demonstrating the vehicle's full flight capabilities.
Despite the share price surge, fundamental challenges remain. The pre-revenue company continues to report substantial annual losses, leaving it sensitive to shifts in market sentiment and potential financing risks. Delays in certification or production, as well as future capital raises, pose ongoing threats.
Market Awaits Key Economic Data
Traders are now looking ahead to major U.S. economic releases that could influence risk sentiment. The Labor Department will publish January employment figures on Wednesday, February 11, followed by the Consumer Price Index inflation data on Friday, February 13.
