Why Is PLANET LABS PBC A (PL) Stock Down Today?

Why PL stock is down today

Planet Labs PBC A (PL) fell 6.00% to $18.79 in morning trade after opening with a modest gap up. The stock’s sharp decline followed a mixed start to the session and came despite the company securing a seven-figure, one-year defense contract with a European customer. The move reflects a broader market reaction to earnings expectations and ongoing profitability concerns.

What Happened

Planet Labs announced a contract with a European defense and intelligence customer covering Planet Mosaics and dedicated services for operational planning. The deal, described as a one-year, seven-figure agreement, is expected to boost the company’s defense growth. However, the stock fell in premarket trading and continued to decline during the session. The company is scheduled to report Q2 2027 earnings on September 3.

Berenberg recently initiated coverage on Planet Labs with a Buy rating, citing favorable trends in the space sector. The stock had risen 5% following the report, but the momentum faded quickly. Meanwhile, recent insider transactions show six sales totaling $11.4 million in the past 90 days, with no insider buys recorded. The CFO and two directors sold shares in July.

What The Data Shows

The stock opened at $20.45, a 2.3% gap up from the previous close, but quickly reversed to a session low of $18.64. Volume was 4.1 million shares, or 0.4 times the 3-month average. The stock is currently trading at $18.83, down from its 52-week high of $51.76 and well below its 200-day average. The session also saw one fresh 52-week high and 15 fresh 52-week lows. The company remains unprofitable, with a trailing 12-month net margin of -111.2% and earnings per share of -1.17.

What To Watch

Investors will need to watch Planet Labs’ Q2 earnings report on September 3 for further clarity on the company’s financial health and guidance. Coverage breadth and market reaction to the report will be key indicators of near-term direction.