Cathie Wood Buys the Dip in Archer Aviation, Betting Big With $26 Million Stake

This article first appeared on GuruFocus.

Cathie Wood’s ARK Invest boosted its stake in Archer Aviation (NYSE:ACHR) this week, purchasing more than 3 million shares worth over $26 million across multiple funds.

The buying spree came through three of ARK’s exchange-traded funds, the ARK Innovation ETF (ARKK), which picked up roughly 2.3 million shares; the ARK Autonomous Technology & Robotics ETF (ARKQ), which added about 516,000 shares; and the ARK Space Exploration & Innovation ETF (ARKX), which bought around 150,000 shares. Archer now ranks among the top holdings in both ARKK and ARKQ.

The move coincided with Archer’s latest quarterly update. The electric air taxi company announced a deal to acquire control of Hawthorne Airport in Los Angeles for $126 million in cash, less than three miles from LAX. It also raised $650 million in new equity, bringing total liquidity to more than $2 billion.

Despite these milestones, Archer’s shares dropped nearly 11% in premarket trading on Friday as net losses widened to $129.9 million for the quarter amid higher operating costs. Year-to-date, the stock remains down about 9%, lagging the broader market.