Planet Labs stock on edge ahead of earnings: will it drop 20%

Core Viewpoint - Planet Labs stock is currently in a bear market, having dropped 20% from its year-to-date high, with concerns about its upcoming earnings report and potential for further decline [1][6]. Company Performance - Planet Labs PBC specializes in earth observation solutions via low-orbit satellites, serving government agencies and major corporations like Bayer and AXA [2]. - The company's revenue has shown significant growth, increasing from $133 million in 2021 to $244 million last year, with a recent quarterly revenue jump of 33% to $81.3 million [3][4]. - Despite revenue growth, Planet Labs has incurred substantial net losses, totaling nearly $700 million over the past five years [3]. Financial Outlook - Analysts estimate that the company's revenue for the last quarter rose to approximately $78 million, projecting an annual revenue of $297 million, which represents a 22% year-over-year increase [5]. - The company is expected to continue generating double-digit growth in the coming years, with earnings-per-share projected to improve from a loss of 11 cents last year to a loss of 7 cents this year [5][7]. Market Sentiment - The stock has formed an ascending channel, with current trading at $24.60, down from a peak of $30.93 earlier this year [8]. - Technical analysis indicates a bearish outlook, with a potential target of $19.70, approximately 20% below the current level, unless it breaks above the resistance level of $27.50 [9].