Planet Labs (PL) Falters 9% on Space Launch Concerns

Planet Labs PBC (NYSE:PL) is one of the 10 Stocks Entering June in the Wrong Direction.

Planet Labs dropped its share prices by 9.15 percent on Monday to end at $46.46 apiece, as investor funds fled the space sector following a rocket explosion during an engine test last week.

On Friday, Blue Origin’s New Glenn rocket exploded while undergoing a hot-fire engine test at its launch pad in Florida, sending shockwaves equivalent to a 2.5 magnitude earthquake.

Photo from Planet Labs website

Investors were quick to dispose of positions in space companies, including Planet Labs PBC (NYSE:PL), Rocket Lab Corp., and Intuitive Machines Inc., among others, amid caution over the safety of rocket launches.

The drop followed last week’s flurry of positive developments across the space industry after the National Aeronautics and Space Administration announced the awarding of contracts to a number of space players for its ambitious lunar exploration program. While Planet Labs PBC (NYSE:PL) does not directly benefit from the contracts, investors placed bets on the long-term program’s growth spillover potential to other key players.

In other news, Planet Labs PBC (NYSE:PL) is set to release its financial and operating highlights for the first quarter of fiscal year 2027 after market close on Thursday, June 4. A conference call will be held to elaborate on the results and its outlook.

For the first quarter, Planet Labs PBC (NYSE:PL) earlier guided revenues of $87 million to $91 million, or an implied growth of 31.2 percent to 37 percent from the $66.3 million posted in the same period last year.

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