Sticking With This Planet Labs Price Target as New Pattern Sets Up Nicely
With indicators in better than decent shape, let's update our trading strategy on this 'core' name.
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Planet Labs
I try to update the names that I consider core "Stocks Under $10" stocks on a regular basis, treating the Stocks Under $10/Small Caps column as if it were still connected in some imaginary way to the old portfolio, which, by the way, ended its run with what was probably the best year in the history of that product. And with the likes of Palantir Technologies (PLTR) , Rocket Lab USA (RKLB) and SoFi Technologies (SOFI) among others, that portfolio would likely have gone on to post an incredible three-year run.
One of those core names, Planet Labs (PL) , I just realized this morning, was not covered in February and has not been covered since January 16. Almost two months. Completely unacceptable. That said, when some highly focused upon names, such as the above three, start to struggle, I do have to concentrate on managing that risk as those stocks are key names not just to the Stocks Under $10 crowd, but to my own Sarge-folio P/L as well... and that is what I write about.
In January
In January, I wrote that I increased my target price for Planet Labs to $26 from $17. The last sale was $23 at the time. The stock had been on a run. The run continued.
On January 16, with the stock trading at $30.30, I wrote... "I will take something off because my target price got obliterated. That's discipline 101." We always take at least a little some off when targets are taken out, because we would kick ourselves if we did not and that was when due to the same technicals that produced our target, the stock changed direction.
I then added, "Secondly, I've got to get out of the way and see how parabolic this thing wants to get. For that reason, I am lifting my target price to $40 from $26 because I don't want to sell anymore after what I sell after this piece goes public."
I needed to look at the charts and see if anything new would develop. Makes sense.
Since January 16
It turned out that January 16 is the high to date for this stock in 2026. The apex came at $30.90. So, our sale at that time turned out to be the correct move. That high was created by a cup-with-handle pattern with a $21 pivot.
The stock appears to be putting in a new cup pattern as I write this piece. Remember, the pivot for any cup pattern is the left side apex of said cup. Should a "handle" be added, the pivot moves to the right-side apex. Cups and cups with handles are not bullish setups. That makes that $30.90 high ($31 for my purposes) the current pivot.
Earnings loom in about 10 days. For the company's fiscal fourth quarter, Wall Street is looking for an adjusted loss of $0.05 per share on revenue of $78.2 million. That would compare to a loss of $0.08 per share for the year-ago comparison on year-over-year sales growth of 27%.
The indicators are in better than decent shape. Relative Strength is better than neutral and rising. The daily MACD (moving average convergence divergence) is postured bullishly, even if just moderately so, with all three components above zero and the 12-day EMA (exponential moving average) above the 26-day EMA.
Planet Labs (PL)
Price Target: $40 (reiteration)
Pivot: $31
Add: Down to 50-day SMA (currently $24, regular support for weeks)
Panic: loss of 200-day SMA (currently $13)
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At the time of publication, Guilfoyle was long PL, PLTR, RKLB, SOFI equity.
