Planet Labs Stock Tests Key Support Before Earnings

Planet Labs PBC (NYSE:PL) is set to report second-quarter earnings after the close tomorrow, Sept. 3. Wall Street expects the satellite imaging company to report a loss of $0.02 per share, an improvement of 33.3% year over year. Last quarter, Planet Labs reported a loss of $0.03 per share, in line with estimates.

PL stock has experienced a dramatic reversal since its May 28 record peak of $51.76. The shares have since fallen back below the $20 level, and are now testing long-term support at the rising 320-day moving average, which coincides with its year-to-date breakeven level. 

Options traders are pricing in a 26.9% post-earnings move for PL stock, regardless of direction. That's roughly in line with the 28.4% move the shares have averaged over the last eight reports. Recent reactions have been particularly volatile, including a 26% drop in June, preceded by gains of 25.5%, 35%, 47.9%, and 49.4% following the previous four reports.

Options traders have been overwhelmingly bullish ahead of the event. At the International Securities Exchange (ISE) and Cboe Options Exchange (CBOE), PL's 10-day call/put volume ratio of 11.49 ranks higher than 92% of readings from the past year. This indicates options traders have favored bullish bets at a much faster-than-usual clip.

Though short interest has begun to unwind, down 14.4% in the last month, it still accounts for 8.45% of PL's available float. At the stock's average pace of trading, it would take shorts nearly three days to buy back their bearish bets.