Archer Aviation Inc. (ACHR) saw its stock price decline by 1.32% to close at $11.18 on December 27, 2024, amid heightened trading activity and market speculation. The stock opened at $11.16, reached a high of $11.69, and dipped to a low of $10.81, with a trading volume of 36,188,213 shares, surpassing its average daily volume by 14%. The decline was partly driven by a surge in options trading, with 90,573 call options traded, indicating potential volatility and increased selling pressure. Additionally, insider trading activity, including Director Michael Spellacy's sale of 191,513 shares at $10.00 on December 18th, may have contributed to investor concerns about the company's near-term prospects.
The stock's recent performance has also been a topic of discussion on Reddit, where users speculated about a potential short squeeze akin to GameStop's in 2021. Despite Archer's recent achievements, such as securing $500 million in funding and forming a partnership with Anduril Industries, the company still faces challenges, including obtaining FAA certifications. The stock's recent rally, driven by meme stock momentum and FOMO dynamics, has led to increased short interest, with some investors betting on a decline in valuation.