What Happened?

Shares of earth imaging satellite company Planet Labs (NYSE:PL) fell 22.6% in the morning session after the company reported weak fourth-quarter (fiscal 2025) results: Its full-year revenue and EBITDA guidance missed significantly along with this quarter's revenue and EPS. 

On a more positive note, the backlog of contracted revenue jumped 115% quarter-over-quarter, suggesting longer-term demand may be improving despite near-term struggles. 

Still, this was a challenging quarter for Planet Labs, with weak revenue growth and disappointing guidance.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Planet Labs? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Planet Labs’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. But moves this big are rare even for Planet Labs and indicate this news significantly impacted the market’s perception of the business.

Planet Labs is down 6.9% since the beginning of the year, and at $3.70 per share, it is trading 43.1% below its 52-week high of $6.49 from February 2025. Investors who bought $1,000 worth of Planet Labs’s shares at the IPO in April 2021 would now be looking at an investment worth $373.23.

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