PL Stock Records Sharpest Single-Day Fall In 21 Months – Why Bullish Street Calls, Earnings Beat Failed To Turn The Tide

• Under the program, Planet Labs can periodically sell shares or enter into forward sale agreements with participating banks.
• Craig-Hallum raised the price target to $49 from $36 and maintained a ‘Buy’ rating, according to The Fly.
• PL shares fell below their 200-dma for the first time in over two months.

Planet Labs (PL) shares plunged more than 22% on Friday, clocking their steepest single-day decline in 21 months, as investors reacted sharply to the satellite-imaging company’s latest stock offering, which could amount to roughly 10% of its market value.

PL stock also fell below the crucial 200-day moving average (200-DMA) for the first time since March 2026.

Source: TradingView

PL’s $1.5B ATM Offering

According to an SEC filing, Planet Labs established a new at-the-market (ATM) equity offering program that would allow the company to raise up to $1.5 billion by selling Class A common stock over time. The stock has a market cap of roughly $15.51 billion, according to Koyfin data.

The company entered into an agreement with a syndicate of major financial institutions, including Goldman Sachs, Morgan Stanley, Barclays, Citigroup, and Deutsche Bank, to facilitate the offering. Under the program, Planet Labs can periodically sell shares or enter into forward sale agreements with participating banks.

Why Is Retail Bullish On PL?

Despite the sharp decline, retail sentiment surrounding PL on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, while message volumes surged by around 420%.

One user explained why the offering represented a “short-term pain, long-term gain” scenario.

Another user called offerings a “necessary evil to grow the company,” citing examples of space firms like Rocket Labs and Intuitive Machines.

Analyst Remains Bullish On PL

On Thursday, Planet Labs posted a record quarterly revenue of $94.2 million, topping Wall Street’s estimates of $90.13 million, according to Fiscal.ai data. Adjusted loss per share of $0.03 was narrower than consensus estimates of a loss of $0.04 per share. However, its non-GAAP gross margin fell to 56% from 59% a year ago.

The company also raised its second-quarter revenue to $102 million-$107 million, above estimates of $100.86 million.

The earnings prompted Craig-Hallum to raise the price target to $49 from $36 and maintain a ‘Buy’ rating, according to The Fly. This represents a potential upside of 38%. The firm noted that Planet Labs continues to execute its strategy well and added that further major sovereign wins should drive the stock higher.

PL shares have seen strong buying interest so far this year, gaining more than 87%.

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