Markets
markets
Matt Phillips

Satellite stocks surge on “sovereign space” plans

Planet Labs is on pace to notch its second 10% gain of the month early Tuesday afternoon, adding to its astronomical run of more than 500% over the last 12 months.

Wedbush Securities tech analyst Dan Ives hiked his price target for the stock to $30 from $28 after hosting a series of meetings with the company and investors in California. Ives wrote:

“[Planet Labs] is seeing massive success through its improved GTM selling motion as the company is providing mission-critical use cases for a wide array of government applications with defense & intelligence, with more international agencies seeing the value in PL’s satellite fleet for situational and maritime domain awareness in real-time as the company is benefitting from increasing defense budgets and the urgent need for international countries to reduce its reliance on the US.”

That commentary is consistent with recent news reports that the German military is planning to build what the Financial Times calls the “the equivalent of Elon Musk’s internet service for the German armed forces.”

A separate report in The Wall Street Journal on Monday said, “Spending on space-related projects is expected to rise in many countries, giving companies new opportunities to sell their wares and services.”

Behind this push, in part, is the fact that the roughly 80-year-old NATO alliance is is under unprecedented strain due to, among other things, US President Donald Trump’s fixation on somehow acquiring the Danish territory of Greenland.

Other space plays seem to be benefiting from similar dynamics, with Rocket Lab and AST SpaceMobile both up solidly on the day.

Governments’ New Must-Have: Their Own Satellites

Governments’ New Must-Have: Their Own Satellites

“[Planet Labs] is seeing massive success through its improved GTM selling motion as the company is providing mission-critical use cases for a wide array of government applications with defense & intelligence, with more international agencies seeing the value in PL’s satellite fleet for situational and maritime domain awareness in real-time as the company is benefitting from increasing defense budgets and the urgent need for international countries to reduce its reliance on the US.”

That commentary is consistent with recent news reports that the German military is planning to build what the Financial Times calls the “the equivalent of Elon Musk’s internet service for the German armed forces.”

A separate report in The Wall Street Journal on Monday said, “Spending on space-related projects is expected to rise in many countries, giving companies new opportunities to sell their wares and services.”

Behind this push, in part, is the fact that the roughly 80-year-old NATO alliance is is under unprecedented strain due to, among other things, US President Donald Trump’s fixation on somehow acquiring the Danish territory of Greenland.

Other space plays seem to be benefiting from similar dynamics, with Rocket Lab and AST SpaceMobile both up solidly on the day.

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Helena Cheng

Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

  • EPS of $1.69 vs. the $1.68 expected.

  • Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemon’s geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected “halo effect” across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemon’s valuation has already been steadily compressing for years. While it was once one of retail’s richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi O’Neill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brand’s growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

markets
Paige Oamek

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

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