Archer Aviation Stock Plunges After Deal with Boeing

Archer Aviation's (ACHR) stock plummeted by 8.2% on Wednesday, following a recent surge in value driven by its deal with Boeing (BA). The agreement, announced earlier this week, has Archer acquiring Wisk Aero, Insitu, and SkyGrid from the aerospace giant.

Insitu, which is expected to bring in over $200 million in annual revenue, far surpasses Archer's current sales figures. In fact, its revenue run rate is more than tenfold that of Archer's own operations.

The deal also includes Boeing acquiring new shares representing 19.75% of Archer's Class A total prior to closing. This means that Boeing will hold approximately 16.5% of the expanded Class A share count after the transaction is complete.

While investors initially welcomed the news, with Archer's stock rising nearly 14% on Monday, they are now reevaluating the deal's impact. The decline in value indicates that investors are prioritizing pricing discipline over strategic expansion.