Why Planet Labs Popped 14%, Then Dropped Today
Space company Planet Labs (NYSE: PL) soared in early trading Wednesday, rising more than 14% before plunging back to Earth. As of 11 a.m. ET, Planet Labs stock is actually down 3.7%.
But why is this space stock giving up any gains at all? Didn't Planet Labs just announce some incredibly good news today -- a $230 million contract for use of its new Pelican satellites to provide high-resolution satellite imagery?
It did. This morning, Planet Labs said it has signed a "multi-year $230 million agreement to expand its partnership with a long-standing, Asia-Pacific commercial partner [to] build and deliver a constellation of new Pelican high resolution satellites, securing certain capacity on the satellites for the partner." CEO Will Marshall noted that this is Planet's largest-ever contract.
Source Fool.com
