Planet Labs PBC (PL) shares tumbled 5.81% in after-hours trading on Thursday, marking a significant reversal despite the company reporting better-than-expected fiscal first-quarter results. The Earth imaging company posted revenue that surged 42% year-over-year to $94.2 million, beating analyst estimates, while its adjusted loss per share also came in narrower than expected.

Analysts attributed the post-earnings decline to profit-taking following an extraordinary rally in the stock. Planet Labs shares had gained approximately 236% over the past six months and nearly 1,000% over the past 12 months, driven partly by space sector enthusiasm and expectations surrounding SpaceX's potential IPO. The massive run-up left the stock trading at about 33 times expected sales, a sharp increase from around 4 times sales a year ago, raising valuation concerns among some investors.

"The best explanation for the post-earnings dip might just be profit-taking after an epic run," noted one analysis, highlighting that even solid financial performance couldn't sustain the stock's momentum amid overheated expectations. The company also reported a widened net loss due to a non-cash warrant revaluation charge, though this was offset by strong backlog growth and new government contract wins that provide visibility into future revenue.