BlackSky Technology Stock Rockets Up: Here’s Why Investors Are Flocking In
Geospatial intelligence play BlackSky Technology (NYSE: BSKY) saw its shares surge double-digits today—joining the speculative frenzy around satellite data plays.
The catalyst? Rumor mill churns on undisclosed government contracts.
Traders piled into the stock after whispers circulated about BlackSky securing classified imagery deals—likely tied to Pentagon or three-letter-agency budgets. No official confirmation yet, but Wall Street’s algo-triggered buying spree suggests someone’s betting big on overhead reconnaissance demand.
Reality check: This is the same stock that got torched 60% last year when revenue growth stalled. Now trading at 12x sales, bulls argue its AI-driven analytics platform justifies the premium. Bears smirk at yet another ‘story stock’ burning short sellers.
One analyst quipped: ‘When the rockets launch, so do the valuations—until the fuel runs out.’
Image source: Getty Images.
BlackSky rises as investors pile back into growth stocks
The stock market has been volatile recently as investors have focused on risks related to trade disputes, debate about the debt ceiling and budgetary matters in Congress, and other factors. Despite some recent pressures, investors took assurances about potential resolutions and de-escalations for trade-ware and debt-ceiling issues as bullish indicators and heavily bought back into stocks on Monday. BlackSky's jump today has pushed the company's market capitalization up to approximately $948 million.
What's next for BlackSky?
BlackSky is scheduled to publish its third-quarter results and issue new business-outlook guidance before the market opens on Nov. 6. With its last business update, the company said that it expected full-year sales to come in between $105 million and $130 million.
Management also said it expected non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) to come in between break-even and $10 million. Meanwhile, capital expenditures were projected to come in between $60 million and $70 million. Following some recent contract announcements, investors may be looking for the company's sales performance to come in above the target range management last suggested.
