Wedbush makes a strong case for buying the dip in Planet Labs stock

San Francisco-headquartered Planet Labs PL tanked on Friday morning after the company issued full-year guidance that disappointed some growth-hungry investors.

The satellite imagery specialist posted a record Q1 revenue of USD 94.2 million (approx. $137.2 million) and scaled its backlog further, but structural margin adjustments and capital allocations underwhelmed short-term traders.

Still, renowned Wedbush analyst Dan Ives recommends buying the post-earnings dip in Planet Labs shares that remain up more than 65% versus the start of this year (2026).

Why Wedbush remains bullish on Planet Labs stock

The foundation of Wedbush’s unwavering optimism lies within Planet Labs’ massive, high-margin government pipeline.

In his research note, Ives said the retail market seems to be panicking over near-term operational noise – but the enterprise reality shows a business capturing critical market share globally.

Rising geopolitical tensions in early 2026 drove a 65% year-on-year increase in the firm’s Defense & Intelligence segment – a structural shift that increased its backlog to USD 906 million (approx. $1.3 billion) in fiscal Q1 – up a remarkable 72% versus last year.

Ives remains positive on PL stock as these multibillion-dollar sovereign defense pipelines signal a highly visible, long-term recurring revenue stream that vastly outweighs margin friction

What else warrants buying PL shares today

While institutional algorithmic traders dumped Planet Labs stock over an adjusted EBITDA profit guidance of breakeven to USD 10 million (approx. $14.6 million) – falling just short of peak Wall Street models – Ives views this capital allocation as a vital investment.

The NYSE-listed firm is aggressively transitioning from basic raw imagery to high-value, artificial intelligence (AI) enabled analytics and downstream data solutions.

Moreover, PL successfully shipped its cutting-edge Pelican-11 demonstration satellite to SpaceX’s launch site this week, keeping its next-generation constellation roadmap strictly on track.

All in all, Ives argues that the underlying health of the business is exceptionally robust, highlighted by a strong Net Dollar Retention rate of 113% and an immense USD 731 million (approx. $1.1 billion) cash cushion.

Technicals signal a swift recovery ahead

Investors should also note that options traders also share Ives’ optimism on PL shares.

The “put-to-call ratio” on contracts expiring mid-August sits at 0.42 currently – indicating a bullish skew – with the upper price set at $42.49, suggesting the stock could rally more than 25% over the next two months.

Crucially, despite the post-earnings weakness, Planet Labs is holding its 100-day moving average (MA), reinforcing that the broader uptrend remains intact.

Meanwhile, its relative strength index (RSI) has crashed to mid-30s, signaling the stock is now approaching “oversold” territory that often triggers a relief rally.

What’s also worth mentioning is that Wedbush Securities is not alone on Wall Street in keeping constructive on Planet Labs for the next 12 months.

The consensus rating on PL also currently sits at “moderate buy”, with the mean price objective of $35.36 indicating potential upside of another 9% from current levels.