Why Does Planet Labs Stock Keep Going Down?

By Rich Smith – Mar 30, 2026 at 1:22PM ESTKey PointsPlanet Labs plans to redeem its outstanding warrants.It's unknown how may warrants remain -- but probably not more than 12.8 million.Planet Labs (PL 10.40%) stock tumbled 9.7% through 1:05 p.m. ET Monday, its third straight trading day of declines, after announcing Friday that it will redeem all of its outstanding public warrants. The move promises to increase the number of shares of Planet Labs outstanding if it prompts warrant holders to exercise their warrants rather than allowing them to be redeemed. Image source: Getty Images. Planet Lab's warrant redemption The warrants in question give their holders the right to purchase Planet Labs shares at $11.50 per share upon exercise. Warrant holders have until 5 p.m. ET on April 27, 2026, to exercise this right; if they fail to do so, Planet Labs will have the right to repurchase them at $0.01 per warrant. Considering that Planet Labs stock currently costs roughly $28 a share, and that exercise will yield an immediate $16.50 per share profit, it's likely any warrant holder that's paying attention will choose to take the profit rather than the $0.01 redemption offer. Let's assume this is what happens. So what happens next? ExpandNYSE: PLPlanet Labs PBCToday's Change(-10.40%) $-3.21Current Price$27.65Key Data PointsMarket Cap$11BDay's Range$27.51 - $31.1052wk Range$2.79 - $37.05Volume431KAvg Vol14MGross Margin56.00% What happens next Planet Labs did not say how many warrants remain outstanding today. SEC filings, however, show that at one point, warrants were outstanding, sufficient to buy 12,833,315 shares. Assuming this is still the case and that all warrant holders exercise their rights to buy shares, this could yield as much as $211.2 million in new cash for Planet Labs -- and create 12.8 million new shares outstanding. Added to the 322.7 million shares currently outstanding, this would grow the share count to 335.5 million and dilute existing shareholders by only 4%. Given this, and given that these warrants were certainly going to get exercised sometime in any case, today's 10% sell-off in Planet Labs stock seems an overreaction.Read NextMar 25, 2026 •By Rich SmithWhy Planet Labs Popped TodayMar 20, 2026 •By Joe TenebrusoWhy Planet Labs Stock Popped TodayMar 20, 2026 •By Josh Kohn-LindquistStock Market Today, March 20: Planet Labs Surges After Record Revenue and Upbeat GuidanceMar 19, 2026 •By Motley Fool TranscribingPlanet Labs (PL) Q4 2026 Earnings Call TranscriptMar 16, 2026 •By Keith Noonan4 Best Rocket Stocks to Buy in 2026Mar 4, 2026 •By Lou Whiteman6 Best Defense ETFs to Buy in 2026About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedPlanet Labs PBCNYSE: PL$27.79(-9.95%)-$3.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.