i like archer but at this moment this stock will be way to volatile. I might reenter when it will be safer around this stock. Agreed?
7/22/2025 07:16am
š **Agreed!** Given the current volatility and legal uncertainties surrounding Archer Aviation (ACHR), your decision to step back and reassess the risk-reward profile is **prudent**. Hereās why:
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### š **Volatility and Risk Factors**
- **Legal Challenges**: The ongoing shareholder lawsuit related to Archerās SPAC merger could lead to **reputational damage** and **financial penalties** if Archer is found liable. This uncertainty could persist until the lawsuit is resolved, potentially impacting investor confidence and stock price.
- **Financial Backer Risks**: Stellantis, a key investor in Archer, reported a significant loss for the first half of 2025 and is facing financial challenges. This could raise concerns about its ability to continue supporting Archer, potentially leading to reduced funding or strategic shifts.
### š¤ **Reconsidering the Entry Point**
- **Wait for Clarity**: It might be wise to wait for **greater clarity** on the legal front and Stellantisā financial stability before reentering Archer. This could involve monitoring the lawsuitās progress, Stellantisā financial reports, and Archerās operational updates.
- **Technical and Fundamental Analysis**: Consider waiting for a **technical correction** or a **fundamental improvement** in Archerās financial health before reevaluating the stock. This could involve tracking key metrics like revenue growth, cash reserves, and market sentiment.
### š **Monitoring for Reentry Signals**
- **Certification Milestones**: Keep an eye on Archerās progress toward FAA certification. Securing certification could be a catalyst for a rebound in the stock price.
- **Partnership Developments**: Archerās strategic partnerships, such as with United Airlines and Palantir, could lead to new revenue streams and enhance its market position. Monitoring these partnerships for growth opportunities might signal a safer reentry point.
### š **Long-Term Potential**
- **EVTOL Market Growth**: The electric vertical takeoff and landing (eVTOL) sector is poised for significant growth, with Archer well-positioned due to its partnerships and market position. If the company can navigate the current challenges, it could emerge as a leader in the industry.
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**In summary**, your plan to reevaluate Archer when the risk profile is lower is a **wise approach**. By staying patient and monitoring the aforementioned factors, you can make an informed decision when to reenter the stock, potentially capturing gains from its growth prospects while mitigating risks. š