Why Archer Aviation Stock Sank This Week
Archer Aviation (NYSE: ACHR) stock slumped in this week's trading. The company's share price ended the period down 13.5% from the previous week's market close, according to data from S&P Global Market Intelligence.
Archer Aviation fell this week as short interest on the stock increased and investors weighed the potential impact of a leadership change at Stellantis, the automaker that has been a key investor and partner for the flying taxi specialist. But even with the recent pullback, Archer stock is still up roughly 137% over the past month.
Following an explosive run, Archer Aviation stock has recently attracted more attention from short-sellers. The company's valuation surged in November after Needham published a bullish report on the stock and outlined an optimistic outlook for the still-nascent flying-taxi industry. But as Archer's valuation has moved higher, some investors are placing bets that the company's share price will come back down to Earth. In turn, stock being sold short is applying a bearish valuation pressure.
Source Fool.com
