Joby Aviation (NYSE:JOBY) share price holds steady after 5% drop, with proposed trust sale drawing attention to its valuation

U.S. markets closed for the weekend with Archer Aviation Inc. ending Friday at $4.73. The company last reported $1.78 billion in liquidity, which is about 49% of Archer’s $3.59 billion market cap. Shares dropped 5.0% during the week, closing just 2.6% above the 52-week low at $4.61.

Archer Aviation Inc. shares rose early Monday afternoon, but the bigger question for investors was what happens to the stock’s gains after factoring in dilution now that the electric aircraft company is more involved in Russell value indexes.

Archer Aviation Inc. comes into the week facing a market hurdle tied to voting, not the planes. The last trade for the stock was Friday’s regular close, with no U.S. equity trading Sunday. Archer gained 1.67% to finish at $4.87, up another 0.81% to $4.9096 in after-hours on 8.62 million shares.

Archer Aviation Inc. shares climbed sharply Monday, rising to about $5.56 late in the session, up 9.35% on the day, with volume above 45 million shares. The move came as other electric-aircraft names also rallied: Joby Aviation was up about 7%, EHang gained nearly 17%, and the SPDR S&P 500 ETF rose roughly 1.8%. That matters because Archer’s stock often trades like a high-risk growth name: when investors are more willing to buy future-focused companies, money tends to flow back into stocks whose profits are still several years away.

Archer Aviation fell 4.15% to end at $5.08 in the most recent session, putting its market value just under $3.9 billion. Shares moved in a range from $5.00 to $5.39 throughout the day. The drop in Archer came even as major indexes gained—SPDR S&P 500 ETF Trust rose 0.57%, and Invesco QQQ added 0.59%. Archer’s stock is sensitive to changes in the discount rate on future earnings. For now, that discount is tied to things like certification goals, ongoing spending, and any possible equity raises before the company’s air-taxi operations start.

Archer Aviation shares were down in premarket trading Friday, taking some of the edge off a recent rally. Investors are looking at the electric-air-taxi company’s certification track, but also see another quarter of steep spending ahead.