Archer Aviation (ACHR) shares have fallen roughly 62% over the past year and trade almost 69% below their lifetime high. Ark Invest CEO Cathie Wood has been treating these large valuation pullbacks as buying opportunities. Over the past five years, the Ark Innovation ETF (ARKK) has seen its share price decline roughly 30%, while the S&P 500 recorded a total return of roughly 80%. The article attributes part of this underperformance to Ark buying more of stocks that were falling sharply in 2021 and 2022, including Teladoc (down 95% over five years), Zoom (down 65%) and Ginkgo Bioworks (down roughly 98%). It argues that Ark's track record is not a meaningful indicator for Archer, whose key drivers are testing and certification progress for its Midnight eVTOL aircraft and contributions from aviation businesses it is acquiring from Boeing, and that investors should not read too much into the performance of Ark's funds.
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