Shares of Planet Labs (NYSE:PL) dropped 4.3% after a Zacks Research analyst downgraded the stock to ‘strong sell’ due to an earnings miss. Despite beating revenue expectations at $81.25 million, the company reported an EPS of ($0.19) compared to the consensus estimate of ($0.02), raising concerns about profitability.

The market has seen 61 moves greater than 5% in Planet Labs’s shares over the last year. The recent drop indicates significant news but may not fundamentally change the business perception. The company previously reported strong Q3 results, with revenue of $81.25 million and a positive free cash flow, leading to a bullish outlook and increased guidance.

Planet Labs is up 389% this year, trading near its 52-week high. Investors who bought shares at the IPO in April 2021 would see their investment nearly double.

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