FOMC Cuts Rates for the Third Time to 3.50%-3.75%
The FOMC delivered its third rate cut of the year as widely expected, taking its fed funds rate target to 3.50%-3.75%, but while the No-Cut camp gained another dissenter, the "hawkish cut" nervousness heading into the announcement largely did not come to pass. The Fed maintained its dot-plot projections anticipating one more rate cut in 2026, though Fed Chair Powell's press conference also gave plenty of attention to the labor market headwinds while noting that inflation pressures would be well-contained in the absence of tariffs. Equity markets rallied, with S&P 500 briefly topping 6,900 while Treasuries were bought across the curve - particularly on the short end - sending the 2-10 maturity spread to its highest level since September. Fed Funds futures still give preference to two rate cuts in 2026 but with an even higher probability than going into today's meeting. US Dollar also weakened as yields fell while precious metals gained in the wake of today's Fed decision.In the opening hour of the evening session, stock futures are consolidating gains. S&P e-minis are off by 0.1% and Nasdaq Composite is down 0.3%. Weakness in Oracle shares after the company's Q2 earnings beat was accompanied by in-line guidance and a call for higher spending is weighing on sentiment in the Tech space, particularly Infrastructure Software - Oracle is down over 10%, Nvidia is off by 1.3%, and CoreWeave is off by 3% afterhours.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Planet Labs PBCup 13.6%Amtech Systemsup 10.3%Nordsonup 7.5%Exzeo Groupup 5.4%Synopsysup 2.7%Vail Resortsup 0.4%ALSO HIGHER -4Gemini Space Stationup 18.3% after getting designated contract market license from CTFCDOWN AFTER EARNINGS -Skillsoftdown 16.8%Oracledown 10.8%; Nvidiadown 1.4%, CoreWeavedown 3.2% in sympathyAdobedown 0.7%ALSO LOWER -Ur-Energydown 11.8% after convertible debt offeringT1 Energydown 10.6% after equity, convertible debt offering
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Planet Labs: The Satellite Stock That Continues to Soar
Company Performance: Planet Labs has experienced significant revenue growth, with a 388% increase in 2025 and over 30% growth in 2026, leading to a stock price rise of nearly 9% during a recent session.
Business Model: The company operates the largest fleet of Earth-imaging satellites, providing daily images and analytics to customers, which include both government and commercial sectors, generating recurring subscription revenue.
Financial Outlook: For FY 2026, 59% of revenue came from defense and intelligence customers, while the company forecasts a revenue of $427.5 million for FY 2027, indicating a growth rate of approximately 39%.
Market Position: Planet Labs has a market capitalization exceeding $10 billion, reflecting strong momentum in its business, although its valuation is high relative to sales, raising questions about future growth sustainability.
SpaceX Rumored IPO Valuation Exceeds $1 Trillion
- SpaceX IPO Outlook: SpaceX is expected to go public later this year with a market valuation between $1.5 trillion and $1.75 trillion, positioning it among the top ten most valuable companies globally, which is generating significant investor excitement.
- Competitor Analysis: Smaller competitors Rocket Lab and Planet Labs are poised for greater upside, with Rocket Lab planning to launch 21 rockets in 2025 and develop its own satellite constellation, indicating strong growth potential given their lower market valuations.
- Rocket Lab Growth Potential: Rocket Lab's revenue surged from $62.2 million in 2021 to $602 million in 2025, and it is expected to further drive growth through its new Neutron rocket and space systems design, enhancing its competitive edge in the market.
- Planet Labs Contract Growth: Planet Labs reported a 33% year-over-year revenue increase to $81 million, with a backlog up 216% to $734 million, indicating strong demand for its global monitoring services and promising future growth prospects.
Exciting Prospects for SpaceX IPO and Investment Opportunities
- Market Valuation Expectations: SpaceX is expected to debut later this year with a market cap between $1.5 trillion and $1.75 trillion, positioning it among the top ten most valuable companies globally, which is generating significant investor interest.
- Merger Risks: The merger between SpaceX and xAI may complicate investors' direct exposure to the space economy, as both companies face challenges, necessitating careful risk assessment by potential investors.
- Rocket Lab's Growth Potential: Rocket Lab plans to launch 21 rockets in 2025, with revenue projected to soar from $62.2 million in 2021 to $602 million in 2025, indicating strong growth potential in the small launch market.
- Planet Labs' Contract Growth: Planet Labs reported a 33% year-over-year revenue increase to $81 million last quarter, with a backlog up 216% year-over-year to $734 million, reflecting robust demand for its global monitoring services.
Planet Labs Reports Strong Revenue Growth, Shares Surge
- Significant Revenue Growth: Planet Labs reported a 41% year-over-year revenue increase to $86.8 million in its fiscal 2026 fourth quarter, exceeding market expectations and demonstrating strong performance in the satellite imagery supply sector.
- Improved Profitability: The company broke even on an adjusted basis, far surpassing Wall Street analysts' expectations of a $0.05 loss per share, indicating a gradual enhancement in profitability that boosts investor confidence.
- Strong Cash Flow: Planet Labs generated $53 million in free cash flow in fiscal 2026, ending the year with $640 million in cash and investments, providing ample financial support for future expansion.
- Optimistic Growth Outlook: The company anticipates revenue growth to between $415 million and $440 million in fiscal 2027, a significant increase from $307.7 million in 2026, with a backlog growth of 79% to over $900 million, signaling strong growth potential ahead.
Planet Labs Sees Surge in Demand with Strong Financials
- Significant Revenue Growth: Planet Labs reported a 41% year-over-year revenue increase to $86.8 million in its fiscal 2026 fourth quarter, surpassing Wall Street expectations and demonstrating strong performance in the geospatial solutions sector.
- Improved Profitability: The company broke even on an adjusted basis, significantly better than analysts' predicted loss of $0.05 per share, indicating a gradual enhancement in profitability that boosts investor confidence.
- Strong Cash Flow and Investment Position: Planet Labs generated $53 million in free cash flow in fiscal 2026, ending the year with $640 million in cash and investments, providing ample funding for future expansion.
- Robust Backlog: The company's backlog grew by 79% to over $900 million, with CEO Will Marshall stating that the strong backlog and healthy pipeline indicate significant growth potential in the coming years.
US Stocks Plunge Amid Rising Energy Costs and Geopolitical Tensions
- Market Plunge: The S&P 500 fell by 1.51%, the Dow Jones by 0.96%, and the Nasdaq 100 by 1.88%, all hitting 6.25-month lows, indicating investor concerns over rising energy costs from the Iran conflict and its potential impact on inflation and economic growth.
- Rising Bond Yields: The 10-year Treasury yield rose to 4.39%, a 7.5-month high, reflecting market fears that surging energy prices could lead to increased inflation, potentially forcing the Fed to tighten monetary policy, thereby heightening market uncertainty.
- Geopolitical Tensions: The Pentagon's preparations to deploy ground troops to Iran and the consideration of taking over Kharg Island, a key oil-export site, have escalated concerns about Middle Eastern stability, contributing to persistently high global oil prices and affecting investor confidence.
- Airline Stocks Decline: Major airlines like United Airlines, American Airlines, and Southwest Airlines saw stock declines of over 3% due to soaring fuel costs, indicating the potential erosion of corporate profits and overall profitability in the airline sector.
Planet Labs: The Satellite Stock That Continues to Soar
Company Performance: Planet Labs has experienced significant revenue growth, with a 388% increase in 2025 and over 30% growth in 2026, leading to a stock price rise of nearly 9% during a recent session.
Business Model: The company operates the largest fleet of Earth-imaging satellites, providing daily images and analytics to customers, which include both government and commercial sectors, generating recurring subscription revenue.
Financial Outlook: For FY 2026, 59% of revenue came from defense and intelligence customers, while the company forecasts a revenue of $427.5 million for FY 2027, indicating a growth rate of approximately 39%.
Market Position: Planet Labs has a market capitalization exceeding $10 billion, reflecting strong momentum in its business, although its valuation is high relative to sales, raising questions about future growth sustainability.
SpaceX Rumored IPO Valuation Exceeds $1 Trillion
- SpaceX IPO Outlook: SpaceX is expected to go public later this year with a market valuation between $1.5 trillion and $1.75 trillion, positioning it among the top ten most valuable companies globally, which is generating significant investor excitement.
- Competitor Analysis: Smaller competitors Rocket Lab and Planet Labs are poised for greater upside, with Rocket Lab planning to launch 21 rockets in 2025 and develop its own satellite constellation, indicating strong growth potential given their lower market valuations.
- Rocket Lab Growth Potential: Rocket Lab's revenue surged from $62.2 million in 2021 to $602 million in 2025, and it is expected to further drive growth through its new Neutron rocket and space systems design, enhancing its competitive edge in the market.
- Planet Labs Contract Growth: Planet Labs reported a 33% year-over-year revenue increase to $81 million, with a backlog up 216% to $734 million, indicating strong demand for its global monitoring services and promising future growth prospects.
Exciting Prospects for SpaceX IPO and Investment Opportunities
- Market Valuation Expectations: SpaceX is expected to debut later this year with a market cap between $1.5 trillion and $1.75 trillion, positioning it among the top ten most valuable companies globally, which is generating significant investor interest.
- Merger Risks: The merger between SpaceX and xAI may complicate investors' direct exposure to the space economy, as both companies face challenges, necessitating careful risk assessment by potential investors.
- Rocket Lab's Growth Potential: Rocket Lab plans to launch 21 rockets in 2025, with revenue projected to soar from $62.2 million in 2021 to $602 million in 2025, indicating strong growth potential in the small launch market.
- Planet Labs' Contract Growth: Planet Labs reported a 33% year-over-year revenue increase to $81 million last quarter, with a backlog up 216% year-over-year to $734 million, reflecting robust demand for its global monitoring services.
Planet Labs Reports Strong Revenue Growth, Shares Surge
- Significant Revenue Growth: Planet Labs reported a 41% year-over-year revenue increase to $86.8 million in its fiscal 2026 fourth quarter, exceeding market expectations and demonstrating strong performance in the satellite imagery supply sector.
- Improved Profitability: The company broke even on an adjusted basis, far surpassing Wall Street analysts' expectations of a $0.05 loss per share, indicating a gradual enhancement in profitability that boosts investor confidence.
- Strong Cash Flow: Planet Labs generated $53 million in free cash flow in fiscal 2026, ending the year with $640 million in cash and investments, providing ample financial support for future expansion.
- Optimistic Growth Outlook: The company anticipates revenue growth to between $415 million and $440 million in fiscal 2027, a significant increase from $307.7 million in 2026, with a backlog growth of 79% to over $900 million, signaling strong growth potential ahead.
Planet Labs Sees Surge in Demand with Strong Financials
- Significant Revenue Growth: Planet Labs reported a 41% year-over-year revenue increase to $86.8 million in its fiscal 2026 fourth quarter, surpassing Wall Street expectations and demonstrating strong performance in the geospatial solutions sector.
- Improved Profitability: The company broke even on an adjusted basis, significantly better than analysts' predicted loss of $0.05 per share, indicating a gradual enhancement in profitability that boosts investor confidence.
- Strong Cash Flow and Investment Position: Planet Labs generated $53 million in free cash flow in fiscal 2026, ending the year with $640 million in cash and investments, providing ample funding for future expansion.
- Robust Backlog: The company's backlog grew by 79% to over $900 million, with CEO Will Marshall stating that the strong backlog and healthy pipeline indicate significant growth potential in the coming years.
US Stocks Plunge Amid Rising Energy Costs and Geopolitical Tensions
- Market Plunge: The S&P 500 fell by 1.51%, the Dow Jones by 0.96%, and the Nasdaq 100 by 1.88%, all hitting 6.25-month lows, indicating investor concerns over rising energy costs from the Iran conflict and its potential impact on inflation and economic growth.
- Rising Bond Yields: The 10-year Treasury yield rose to 4.39%, a 7.5-month high, reflecting market fears that surging energy prices could lead to increased inflation, potentially forcing the Fed to tighten monetary policy, thereby heightening market uncertainty.
- Geopolitical Tensions: The Pentagon's preparations to deploy ground troops to Iran and the consideration of taking over Kharg Island, a key oil-export site, have escalated concerns about Middle Eastern stability, contributing to persistently high global oil prices and affecting investor confidence.
- Airline Stocks Decline: Major airlines like United Airlines, American Airlines, and Southwest Airlines saw stock declines of over 3% due to soaring fuel costs, indicating the potential erosion of corporate profits and overall profitability in the airline sector.
