Planet Labs Pbc (PL) saw its stock price plummet 10.42% during intraday trading on Monday, as negative sentiment from a recent space industry incident triggered a broad sell-off.

The sharp decline is attributed to a significant setback in the space sector. Blue Origin's unmanned New Glenn rocket recently exploded during a hot-fire test at a Space Force facility in Cape Canaveral, Florida. This event delivered a sustained blow to investor sentiment towards space-related companies, prompting a reassessment of short-term operational risks and technical challenges within the industry.

The sell-off was not isolated to Planet Labs, highlighting significant sector-wide linkage effects. Peer company BlackSky Technology also experienced a major decline on the same day. The incident has triggered profit-taking across the space sector, erasing a portion of recent gains that were driven by positive catalysts such as collaboration expectations and successful test flights from other companies.