Archer Stock Falls 8% as Investors Weigh Defense Revenue Against Dilution

Archer Aviation's stock plummeted by 8.2% on Wednesday after initially surging 14% on Monday following the announcement of a deal with Boeing.

The agreement sees Boeing acquiring shares representing 19.75% of Archer's Class A total prior to closing, which translates to a 16.5% stake in the expanded share count.

Insitu, one of the acquired companies from Boeing, generates over $200 million in yearly revenue, significantly surpassing Archer's present sales figures of $20 million annualized.

The acquisition brings instant defense revenue but leads to significant dilution for existing shareholders.