Market Volatility and Growth Opportunities
When the market gets shaky, it’s often growth stocks that feel the impact the most. But, for those investors who can handle a bit of turbulence, these dips might just present some incredible chances.
Last Friday, the S&P 500 Growth stocks experienced a fall of 1.13%, largely due to sales pressure. While much of the focus seemed to be on geopolitical issues, two companies quietly reached significant milestones that could really steer their future growth.
Archer Airlines: Gaining Momentum
The future of urban air mobility might be closer than anyone anticipated. Archer Aviation recently received a boost from a new funding round supported by an executive order from President Trump. This order initiates the Electric Vertical Takeoff and Landing (EVTOL) Integrated Pilot Program, which is aimed at rolling out electric taxis across the U.S. This puts Archer in a prime position ahead of regulatory updates that could fast-track its operations. The White House’s backing could speed up the certification process for their flagship aircraft, the Midnight.
CEO Adam Goldstein is backed by about $2 billion in liquid assets and is emphasizing their “fortress balance sheet.” Archer successfully completed the first test flight of the Midnight, which utilized traditional runway takeoff and landed at speeds of 125 mph, climbing to over 1,500 feet. Although it wasn’t a perfect vertical takeoff, it’s a significant step towards meeting FAA certification standards.
There’s also some promising commercial growth. Archer entered into a partnership with United Airlines, making it the official air taxi provider for the upcoming 2028 Los Angeles Olympics, hinting at immediate revenue streams. The firm also has over $6 billion in customer orders, offering unique insights into future cash flow for a pre-revenue aerospace company.
However, the certification landscape is still rather fluid. Competitors like Joby Aviation, with backing from Toyota and the U.S. Air Force, are also on a fast track. The FAA approval process for entirely new aircraft categories is complicated and non-linear. Until formal accreditation is granted, investors should be cautious yet optimistic regarding all projected timelines.
Despite the existing risks tied to certification, Archer’s backing from the White House, substantial financial resources, and solid commercial partnerships create an intriguing risk-reward scenario. With United Airlines’ route network secured and Olympic exposure ahead, Archer offers an attractive opportunity for investors looking to get ahead in the emerging air taxi market. Those who embrace the volatility might find themselves in a favorable position.
Challenges for Viking and its Obesity Treatments
The market for obesity drugs is potentially one of the largest in history, with analysts estimating a target market of $100 billion by 2030.
In recent Phase 2 studies, subcutaneous drug formulations showed weight loss of up to 14.7%, indicating that Viking’s treatments could compete with established products like Eli Lilly‘s Zepbound. However, Viking’s stock saw a sharp decline of over 35% in 2025, creating a noticeable gap between clinical success and market valuation.
The company has a reported cash position of $852 million, which positions it well to advance the VK2735 candidate, expected to begin in Q2 of 2025. Additionally, they recently completed enrollment for a Phase 2 trial of the oral version of the drug, with results anticipated in the latter half of 2025.
Ultimately, this situation presents a rare opportunity to invest in a potential blockbuster obesity drug at Phase 3 pricing. With a market cap of just $2.92 billion, Viking could be undervalued compared to Phase 3 obesity assets, especially those with top-tier potential.
