ACHR and JOBY are tumbling after JPMorgan downgrades
Shares of electric vertical take-off and landing (eVTOL) companies Archer Aviation Inc (NYSE: ACHR) and Joby Aviation Inc (NYSE: JOBY) are tumbling this morning after bearish notes from JPMorgan.
The analyst downgraded ACHR to "neutral" from "overweight" and JOBY to "underweight" from "neutral," citing election-driven market shifts and broader sector dynamics. While both stocks have outperformed the clean tech sector since the Trump victory, they are viewed as "speculative tech beneficiaries," akin to retail favorites like Tesla (TSLA) and Rocket Lab (RKLB), with recent underperformance attributed to the market's pivot to a risk-on environment.
Archer Aviation stock currently 10.3% lower at $9.40. The equity started the year strong, with a nearly four-year high of $11.80 on Jan. 6, but has since dropped 16.3% over the past five sessions.
Similarly, Joby Aviation stock, which touched its highest level since July 2023 at $10.71 on Jan. 7, are now down 6.2% at $8.90. Despite today’s decline, Joby remains up 8.5% year-to-date.
Options traders appear to be reacting to the analyst's bearish outlook, as both stocks are experiencing unusually high intraday put volume. Despite the cautious sentiment, the January 10 call remains the most traded contract for JOBY, while ACHR sees fresh interest in its weekly 1/10 10-strike call, with new positions opening.