Why BlackSky Technology Stock Is Plummeting Today

Today, shares of BlackSky Technology (BKSY) are experiencing significant drops due to a few unfavorable events. By noon ET, their stock price had fallen by approximately 12%. At the same hour in the trading day, both the S&P 500 and Nasdaq Composite were also showing slight decreases, with the S&P 500 down 0.2% and the Nasdaq Composite down 0.5%.

Alongside a general downtrend in the broader market today, BlackSky’s stock value is being affected by fresh analyst reports from Clear Street and Canaccord. However, despite the dip today, the defense technology company’s share price has still increased significantly, approximately 80%, throughout this year’s trading sessions.

BlackSky stock sinks following new analyst notes

This morning, prior to market opening, Clear Street revised their assessment on BlackSky and changed their recommendation from ‘buy’ to ‘hold’. Despite increasing their one-year price prediction for the stock from $20 to $24 per share, they expressed worries about the company’s valuation and indicated that potential gains are now minimal.

Following Clear Street’s note release, Canaccord Genuity also shared their insights and maintained a buy recommendation for the stock. However, they adjusted their price prediction for the stock from $28 per share to $27 per share, due to an unforeseen drop in sales reported in the tentative second-quarter figures disclosed by the company.

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What’s next for BlackSky?

BlackSky is planning to release its second-quarter earnings and conduct an investor call before the market starts on August 7. However, investors may already have a fair notion of what’s coming up, as the company disclosed some preliminary findings from the second quarter in a filing with the Securities and Exchange Commission (SEC) on July 17.

As an ardent follower, I must share that our revenue dropped approximately 11% year over year, landing at a figure of $22.2 million. This was notably lower than the projected $27.9 million by the average analyst estimate. A significant dip in our professional-and-engineering services revenue was observed, partly due to the sequencing of wrapping up longer-term contracts. Although I have a fair notion about Q2 figures, our upcoming conference call will provide investors with valuable updates on our Gen-3 satellites and recent contract victories.

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2025-07-22 19:43