Planet Labs Shares Drop 40% Amid Market Rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Significant Stock Decline: Planet Labs' shares have plummeted over 40% in the past month, falling from an all-time high of about $51 in May to around $28, primarily due to investors reallocating capital from satellite and data companies to SpaceX's IPO.
- Poor Financial Performance: Despite a 42% year-over-year revenue increase to $94.2 million and a 72% rise in backlog to $906 million for Q1 FY2027, the company reported a substantial net loss of $138.9 million, largely attributed to a one-time non-cash accounting adjustment.
- Strong Cash Position: The company ended the quarter with $730.8 million in cash and short-term investments, providing ample funding for its next-generation satellite constellations without the need to issue new stock, which would dilute share value, indicating financial stability.
- Growth in Defense and Intelligence: The Defense and Intelligence segment saw revenue growth of over 65% year-over-year, securing a $21.9 million extension of a maritime surveillance contract with the U.S. National Geospatial-Intelligence Agency, highlighting strong demand for government contracts.
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Analyst Views on PL
Wall Street analysts forecast PL stock price to fall
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 28.220
Low
12.30
Averages
18.93
High
22.00
Current: 28.220
Low
12.30
Averages
18.93
High
22.00
About PL
Planet Labs PBC is a provider of global, daily satellite imagery and geospatial solutions. It designs, builds, and operates the earth observation fleet of imaging satellites. It provides mission-critical data, advanced insights, and software solutions comprising agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to derive value from satellite imagery. Its satellite data and analytics reveal actionable insights regarding phenomena, such as deforestation, agriculture, climate change, biodiversity, and supply chains worldwide. Its daily stream of proprietary data and machine learning analytics, delivered over its cloud-native platform, helps companies, governments and civil society use satellite imagery to discover insights as change happens. Its digital technology platform includes Agile Aerospace, Proprietary Big Data, and Platform and Analytics. Its products include Planet Monitoring, Planet Tasking, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Planet Labs Shares Drop 40% Amid Market Rotation
- Significant Stock Decline: Planet Labs' shares have plummeted over 40% in the past month, falling from an all-time high of about $51 in May to around $28, primarily due to investors reallocating capital from satellite and data companies to SpaceX's IPO.
- Poor Financial Performance: Despite a 42% year-over-year revenue increase to $94.2 million and a 72% rise in backlog to $906 million for Q1 FY2027, the company reported a substantial net loss of $138.9 million, largely attributed to a one-time non-cash accounting adjustment.
- Strong Cash Position: The company ended the quarter with $730.8 million in cash and short-term investments, providing ample funding for its next-generation satellite constellations without the need to issue new stock, which would dilute share value, indicating financial stability.
- Growth in Defense and Intelligence: The Defense and Intelligence segment saw revenue growth of over 65% year-over-year, securing a $21.9 million extension of a maritime surveillance contract with the U.S. National Geospatial-Intelligence Agency, highlighting strong demand for government contracts.
See More
Planet Labs Shares Drop as Investors Shift to SpaceX
- Significant Stock Decline: Planet Labs' shares have fallen over 40% in the past month, dropping from an all-time high of about $51 in May to around $28, primarily due to investors reallocating capital towards SpaceX's IPO, indicating a market preference for emerging space companies.
- Financial Report Highlights: While Planet Labs reported a 42% year-over-year revenue increase to $94.2 million for Q1 FY2027 and a 72% rise in backlog to $906 million, it also posted a substantial net loss of $138.9 million, reflecting ongoing challenges in achieving profitability.
- Strong Cash Position: The company ended the quarter with $730.8 million in cash and short-term investments, providing ample resources to fund the development of next-generation satellite constellations without diluting shareholder equity through stock issuance, showcasing robust financial management.
- Optimistic Market Outlook: Despite profitability pressures, Planet Labs' Defense and Intelligence segment saw revenue growth exceeding 65% year-over-year, and the recent renewal of a $21.9 million maritime surveillance contract indicates strong potential for growth driven by global surveillance demand.
See More
Smaller Space Companies Gain Attention Post SpaceX IPO
- Rocket Lab Acquisition: Rocket Lab's acquisition of Motiv Space Systems positions it as a full-stack space systems builder, and despite ongoing cash burn, its acquisition strategy and backlog indicate potential for long-term growth.
- Partnership with Anthropic: Planet Labs partners with Anthropic to convert satellite imagery into actionable intelligence, achieving non-GAAP profitability for the first time, signaling a strategic pivot towards defense and enterprise AI markets.
- NASA Contract Approval: Intuitive Machines secures a $180.4 million contract from NASA for lunar payload delivery, enhancing its significance in U.S. government space plans, although it faces high-stakes risks.
- Redwire Contract Growth: Redwire lands several key contracts, including a solar array deal with Moog, and while profitability remains a challenge, its role in the space economy's infrastructure is increasingly recognized.
See More
Analysis of Potential in Smaller Space Companies
- Rocket Lab Acquisition: Rocket Lab's acquisition of Motiv Space Systems positions it as a full-stack space systems builder, and while still burning cash, its acquisition strategy and backlog indicate potential for long-term growth despite current losses.
- Planet Labs Profit Milestone: Planet Labs' partnership with Anthropic to convert satellite imagery into actionable intelligence marks its first non-GAAP profitability, signaling a successful pivot towards defense and enterprise AI markets, which are crucial for revenue generation.
- Intuitive Machines Contract Win: Intuitive Machines secured a $180.4 million contract from NASA for payload delivery to the lunar south pole, becoming the prime contractor for a key NASA project, thereby enhancing its standing in the aerospace sector.
- Redwire Contract Growth: Redwire has landed significant contracts, including a solar array deal with Moog, and although profitability remains a challenge, its role in the space economy's infrastructure is increasingly recognized by the market.
See More
Analysis of Short-Term Investment Trends in Space Stocks
- Short-Term Bearish Trends: According to S3's analysis, ASTS and SPCE are identified as the clearest bearish bets in the space sector, with ASTS's short position reaching 54 million shares, a 41% increase year-to-date, while SPCE's surged 86% to 28 million shares, indicating strong market skepticism towards these stocks.
- Investor Behavior Shift: Despite LUNR being heavily shorted, passive ownership has surged 101% year-to-date, reflecting growing confidence among long-term investors, with active and hedge fund long positions increasing by 52% and 97% respectively, outpacing the stock's 34% short interest growth.
- Short Covering Phenomenon: Short positions in RKLB and VSAT have decreased by 22% and 26% year-to-date, respectively, indicating investor recognition of improved fundamentals in these cash-generating companies, suggesting a more optimistic outlook for their future performance.
- Market Sentiment Analysis: On Stocktwits, retail sentiment towards SPCX is deemed 'bullish', while ASTS, SPCE, and RKLB also show 'bullish' sentiment, indicating an overall increase in market confidence in space stocks, despite VSAT and PL leaning towards 'bearish' sentiment.
See More
SpaceX IPO Drives Planet Labs Stock Down Amid Investor Shift
- Stock Decline Trend: Planet Labs' stock has dropped 20% since SpaceX's IPO, with an 11% decline today alone, indicating waning investor confidence that could lead to further market share loss.
- Capital Flow Shift: Investors are reallocating funds from Planet Labs to SpaceX, which has seen a nearly 14% stock increase, suggesting heightened market enthusiasm for SpaceX that may negatively impact Planet Labs' future financing capabilities.
- Options Market Signals: Despite the current weakness in Planet Labs' stock price, call options are outpacing put options by a 3-to-1 ratio, indicating some investors are optimistic about a potential rebound, which could attract more capital back into the stock.
- Cash Flow Comparison: According to S&P Global, Planet Labs is currently the only space company generating positive free cash flow, while SpaceX burned $14.1 billion last year, making Planet Labs a more attractive value play in the investment landscape.
See More
Planet Labs Shares Drop 40% Amid Market Rotation
- Significant Stock Decline: Planet Labs' shares have plummeted over 40% in the past month, falling from an all-time high of about $51 in May to around $28, primarily due to investors reallocating capital from satellite and data companies to SpaceX's IPO.
- Poor Financial Performance: Despite a 42% year-over-year revenue increase to $94.2 million and a 72% rise in backlog to $906 million for Q1 FY2027, the company reported a substantial net loss of $138.9 million, largely attributed to a one-time non-cash accounting adjustment.
- Strong Cash Position: The company ended the quarter with $730.8 million in cash and short-term investments, providing ample funding for its next-generation satellite constellations without the need to issue new stock, which would dilute share value, indicating financial stability.
- Growth in Defense and Intelligence: The Defense and Intelligence segment saw revenue growth of over 65% year-over-year, securing a $21.9 million extension of a maritime surveillance contract with the U.S. National Geospatial-Intelligence Agency, highlighting strong demand for government contracts.
See More
Planet Labs Shares Drop as Investors Shift to SpaceX
- Significant Stock Decline: Planet Labs' shares have fallen over 40% in the past month, dropping from an all-time high of about $51 in May to around $28, primarily due to investors reallocating capital towards SpaceX's IPO, indicating a market preference for emerging space companies.
- Financial Report Highlights: While Planet Labs reported a 42% year-over-year revenue increase to $94.2 million for Q1 FY2027 and a 72% rise in backlog to $906 million, it also posted a substantial net loss of $138.9 million, reflecting ongoing challenges in achieving profitability.
- Strong Cash Position: The company ended the quarter with $730.8 million in cash and short-term investments, providing ample resources to fund the development of next-generation satellite constellations without diluting shareholder equity through stock issuance, showcasing robust financial management.
- Optimistic Market Outlook: Despite profitability pressures, Planet Labs' Defense and Intelligence segment saw revenue growth exceeding 65% year-over-year, and the recent renewal of a $21.9 million maritime surveillance contract indicates strong potential for growth driven by global surveillance demand.
See More
Smaller Space Companies Gain Attention Post SpaceX IPO
- Rocket Lab Acquisition: Rocket Lab's acquisition of Motiv Space Systems positions it as a full-stack space systems builder, and despite ongoing cash burn, its acquisition strategy and backlog indicate potential for long-term growth.
- Partnership with Anthropic: Planet Labs partners with Anthropic to convert satellite imagery into actionable intelligence, achieving non-GAAP profitability for the first time, signaling a strategic pivot towards defense and enterprise AI markets.
- NASA Contract Approval: Intuitive Machines secures a $180.4 million contract from NASA for lunar payload delivery, enhancing its significance in U.S. government space plans, although it faces high-stakes risks.
- Redwire Contract Growth: Redwire lands several key contracts, including a solar array deal with Moog, and while profitability remains a challenge, its role in the space economy's infrastructure is increasingly recognized.
See More
Analysis of Potential in Smaller Space Companies
- Rocket Lab Acquisition: Rocket Lab's acquisition of Motiv Space Systems positions it as a full-stack space systems builder, and while still burning cash, its acquisition strategy and backlog indicate potential for long-term growth despite current losses.
- Planet Labs Profit Milestone: Planet Labs' partnership with Anthropic to convert satellite imagery into actionable intelligence marks its first non-GAAP profitability, signaling a successful pivot towards defense and enterprise AI markets, which are crucial for revenue generation.
- Intuitive Machines Contract Win: Intuitive Machines secured a $180.4 million contract from NASA for payload delivery to the lunar south pole, becoming the prime contractor for a key NASA project, thereby enhancing its standing in the aerospace sector.
- Redwire Contract Growth: Redwire has landed significant contracts, including a solar array deal with Moog, and although profitability remains a challenge, its role in the space economy's infrastructure is increasingly recognized by the market.
See More
Analysis of Short-Term Investment Trends in Space Stocks
- Short-Term Bearish Trends: According to S3's analysis, ASTS and SPCE are identified as the clearest bearish bets in the space sector, with ASTS's short position reaching 54 million shares, a 41% increase year-to-date, while SPCE's surged 86% to 28 million shares, indicating strong market skepticism towards these stocks.
- Investor Behavior Shift: Despite LUNR being heavily shorted, passive ownership has surged 101% year-to-date, reflecting growing confidence among long-term investors, with active and hedge fund long positions increasing by 52% and 97% respectively, outpacing the stock's 34% short interest growth.
- Short Covering Phenomenon: Short positions in RKLB and VSAT have decreased by 22% and 26% year-to-date, respectively, indicating investor recognition of improved fundamentals in these cash-generating companies, suggesting a more optimistic outlook for their future performance.
- Market Sentiment Analysis: On Stocktwits, retail sentiment towards SPCX is deemed 'bullish', while ASTS, SPCE, and RKLB also show 'bullish' sentiment, indicating an overall increase in market confidence in space stocks, despite VSAT and PL leaning towards 'bearish' sentiment.
See More
SpaceX IPO Drives Planet Labs Stock Down Amid Investor Shift
- Stock Decline Trend: Planet Labs' stock has dropped 20% since SpaceX's IPO, with an 11% decline today alone, indicating waning investor confidence that could lead to further market share loss.
- Capital Flow Shift: Investors are reallocating funds from Planet Labs to SpaceX, which has seen a nearly 14% stock increase, suggesting heightened market enthusiasm for SpaceX that may negatively impact Planet Labs' future financing capabilities.
- Options Market Signals: Despite the current weakness in Planet Labs' stock price, call options are outpacing put options by a 3-to-1 ratio, indicating some investors are optimistic about a potential rebound, which could attract more capital back into the stock.
- Cash Flow Comparison: According to S&P Global, Planet Labs is currently the only space company generating positive free cash flow, while SpaceX burned $14.1 billion last year, making Planet Labs a more attractive value play in the investment landscape.
See More
