Planet Labs stock price surge put to the test as earnings loom

Planet Labs NYSE:PL stock has been firing on all cylinders and has continued to beat most companies in the space industry. It has jumped by 695% in the last 12 months and by 135% this year. In contrast, the Procure Space ETF (UFO) has soared by 51% this year and 150% in the last 12 months. This rally will be put to the test this week as it releases its earnings.

Planet Labs stock in focus ahead of earnings

Planet Labs is a top player in the maps industry, offering services to governments and companies from around the world. It operates about 200 earth imaging satellites, which provide daily insights. 

For example, the military uses this data to conduct intelligence, while utility companies use the information to track their infrastructure. Planet is also used by companies in the agriculture and insurance sectors. 

The company’s business has done well in the past few years as demand for this data rose. Its most recent earnings showed that its RPOs jumped by 106% in the fourth quarter to $852 million, while its backlog surged by 79% to $900 million.

As a result, its revenue jumped by 41% to $86.8 million, bringing its annual revenue to $307 million. The challenge, however, is that this growth is coming at a cost, as its net loss jumped to $152 million compared to $35.2 million in the same period in 2024. Its full-year loss jumped to $246 million compared to $123 million in the last year. 

Therefore, the Planet Labs stock price will be in the spotlight this week as it releases its financial results. Analysts believe that its revenue growth accelerated in Q1 as the Iran war led to a higher demand for its images. It is unclear how the US decision that forced the company to stop showing key areas in the Middle East impacted its business.

The average estimate among analysts is that its revenue rose by 36% in the first quarter to $90 million. Its second-quarter revenue is expected to be $100 million, a 73% annual increase. Also, the annual revenue is expected to come in at $427 million, up by 40% YoY. 

The other key catalyst for the Planet Labs stock price is the upcoming SpaceX IPO, which will happen on June 12. Like other space stocks, PL has jumped sharply because of this event.

Some of the other top gainers are companies like Rocket Lab, Intuitive Machines, and AST Spacemobile. The challenge, however, is that investors may decide to sell their stocks once the IPO happens. This process is known as buying the rumor and selling the news.

Planet Labs stock price technical analysis

PL stock chart | Source: TradingView

The weekly chart shows that the PL stock price peaked at $51.7 in May and has now pulled back a bit as investors anticipate the upcoming SpaceX IPO. It was trading at $46.45. 

The stock remains much higher than all of its moving averages, a sign that bulls are in control. It also sits above the 23.6% Fibonacci Retracement and the Supertrend indicator. 

Therefore, there is a likelihood that the stock will pull back to the 23.6% retracement level after earnings. The alternative scenario is where it rebounds sharply after results and then starts a bear market after the SpaceX IPO happens next week.

READ MORE: Virgin Galactic stock is soaring ahead of the SpaceX IPO: what next?