Archer Aviation Stock Sank Today -- Is This a Buying Opportunity?

Archer Aviation (NYSE: ACHR) stock is seeing big sell-offs in Tuesday's trading. The electric vertical takeoff and landing (eVTOL) aircraft specialist's share price declined 9% in a session that saw the S&P 500 index's level wind up flat and the Nasdaq Composite index fall 0.4%.Archer Aviation is seeing sell-offs today in conjunction with the company's announcement that it had raised $301.75 million in funding through the sale of new stock. Per Archer's announcement, shares were sold to institutional investors, including funds and accounts managed by BlackRock. The new stock sale brought eVTOL pioneer's total cash-and-equivalents position to roughly $1 billion, and the company says that the new funds will be used to fund its development of hybrid-power aircraft for the defense industry. While having access to additional funds to develop new technologies will be beneficial to the company, investors responded negatively to the stock dilution. By creating and selling new shares, Archer effectively reduced the ownership stake of existing shareholders.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool