Planet Labs PBC (NYSE: PL) shares plummeted 5.13% in intraday trading on Wednesday, despite initially soaring nearly 17% in the pre-market session. The stock's volatile movement came after the satellite imagery firm announced a multi-year, $230 million contract, its largest to date, with a long-standing Asia-Pacific commercial partner.

The $230 million deal involves Planet building and deploying a new Pelican high-resolution satellite constellation, providing satellite capacity and operational services to its partner. The company expects to recognize the revenue over approximately seven years, covering both the satellite build and operational service period.

While the contract win was initially cheered by investors, signaling strong growth prospects and a strengthened balance sheet heading into fiscal 2027 and beyond, the stock's decline suggests that investors are reassessing the company's near-term performance. Despite the long-term optimism, concerns about Planet Labs' ability to meet expectations in the near term may have contributed to the intraday sell-off.