How Long Planet Labs PBC Stock Stays Underwater
A steep fall is one thing, but the time it takes to resurface is the real test for shareholders carrying this specific risk.
Planet Labs PBC (PL) stock’s 26.0% drop on June 5th, 2026, was a sharp reminder of its volatility. The company, a key provider of daily satellite data and insights in the Aerospace & Defense industry, saw the sell-off after its latest earnings call. While management celebrated a record backlog and its first full year of non-GAAP profitability, it also guided for a near-term adjusted EBITDA loss of between minus $6 million and minus $3 million and lower gross margins for the upcoming year, citing necessary investments to capture market demand.
That single-day price move makes the real question urgent for any shareholder: how does this stock behave in a true, broad market shock? A one-day dip is one thing; a multi-month drawdown is another. The history here is clear, and it demands you ask yourself if you can ride it out.
How Far Planet Labs PBC Falls When Markets Drop
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When the wider market stumbles, Planet Labs PBC stock tends to fall further and faster. Across the 5 major market shocks it has traded through since 2021, the stock fell an average of 31% from peak to trough. For comparison, the S&P 500 fell an average of just 13% over those same periods. This amplified downside is the core risk.
Its single deepest drawdown was 47%, a fall that occurred during the 2025 US Tariff Shock. That event falls into the category of “Sovereign & Geopolitical Risk,” which has historically been the most damaging environment for the stock. The numbers show a clear pattern of heightened sensitivity to market stress.
Bounce Back Or Long Slog For Planet Labs PBC?
Surviving the fall is only half the battle; the climb back is what tests an investor’s patience. Of the shocks it has fully recovered from, Planet Labs PBC took a median of about 8 months to climb back to its pre-shock high. That is a significant period to be underwater on a position.
The slowest full recovery was a much longer haul. After the 2023 SVB Regional Banking Crisis, it took about 20 months to reclaim the prior high. While some recoveries have been faster, history shows that a quick rebound is not a guarantee.
Every Major Shock Planet Labs PBC Has Traded Through
Peak-to-trough drawdown in each shock, and how long the stock took to reclaim its pre-shock high. Stock vs. the S&P 500, long-duration bonds, and its sector.
| Shock Event | Stock | S&P 500 | Bonds | Sector | Recovery |
|---|---|---|---|---|---|
| 2022 Inflation Shock & Fed Tightening | -36% | -24% | -35% | -20% | ~8 mo |
| 2023 SVB Regional Banking Crisis | -34% | -6.7% | -4.3% | -6.2% | ~20 mo |
| Summer-Fall 2023 Five Percent Yield Shock | -39% | -9.5% | -17% | -12% | ~16 mo |
| 2024 Yen Carry Trade Unwind | No decline | -7.8% | -1.2% | -1.1% | – |
| 2025 US Tariff Shock | -47% | -19% | -3.8% | -16% | ~3 mo |
[1] 2022 Inflation Shock & Fed Tightening: 9.1% CPI forced aggressive rate hikes, crushing both stocks and bonds simultaneously.
[2] 2023 SVB Regional Banking Crisis: SVB’s rate-driven bond losses triggered a social-media bank run, seized by FDIC.
[3] Summer-Fall 2023 Five Percent Yield Shock: Strong economic data pushed 10-year yields to 5%, compressing yield-sensitive sector valuations.
[4] 2024 Yen Carry Trade Unwind: BOJ rate hike unwound yen carry trades, briefly crashing tech stocks globally.
[5] 2025 US Tariff Shock: 145% China tariffs crashed equities and the dollar on supply chain disruption fears.
Is Today’s Planet Labs PBC A Different Company?
Of course, the company that endured those past shocks is not identical to the one that exists today. On one hand, its financial footing appears stronger.
On the other hand, key challenges persist. The Commercial sector revenue was “down year on year,” while the Civil Government sector was “flat year over year.” Furthermore, the company is guiding for non-GAAP gross margin to fall to between 50% and 52%, down from 59% in fiscal 2026, as it invests heavily. While the government backlog provides a buffer, weakness in other segments and margin pressure suggest the historical pattern of amplified drawdowns remains a relevant risk.
Could You Ride Out Planet Labs PBC’s Next Drop?
To make this concrete, consider what that deepest 47% drawdown does to a portfolio. On a position sized at 10% of a portfolio, that fall would have cut about 5% from your total holdings. At a 20% position weight, the hit would be about 9%. Can your financial plan absorb that kind of impact without forcing a sale at the worst possible time?
This is not about predicting the next market shock. It is about acknowledging the historical behavior of this specific stock and respecting the risk. The levers you control are disciplined position sizing and genuine diversification. Watching for real traction in the company’s AI-driven commercial strategy will be key to seeing if this risk profile begins to change.
That discipline is exactly what the Trefis High Quality (HQ) Portfolio is built to deliver: it pairs the upside of strong businesses with the stability of a 30-stock portfolio, sized and rebalanced with discipline, and has a track record of outpacing the S&P 500, S&P Mid-cap, and Russell 2000. Pairing a concentrated holding with an approach like this is how you keep compounding without a single drawdown derailing the plan.