Why BlackSky Technology Stock Is Plummeting Today

Key Points

• BlackSky is seeing a big pullback today after Clear Street and Canaccord published new coverage on the stock.

• Clear Street cuts its rating on the stock from buy to hold but increased its one-year price target from $20 per share to $24 per share.

• Canaccord kept a buy rating on the stock but lowered its price target from $28 per share to $27 per share.

• 10 stocks we like better than BlackSky Technology ›

BlackSky Technology (NYSE: BKSY) stock is getting hit with big sell-offs Tuesday following a couple of negative catalysts. The satellite technology company's share price was down 12% as of noon ET. At the same point in the daily session, the S&P 500 was down 0.2%, and the Nasdaq Composite was down 0.5%.

In addition to some bearish momentum for the broader market today, BlackSky's valuation is being pressured by new analyst notes from Clear Street and Canaccord. Despite today's pullback, the defense-tech specialist's share price is still up roughly 80% across 2025's trading.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

BlackSky stock sinks following new analyst notes

Before the market opened this morning, Clear Street published new coverage on BlackSky and lowered its rating on the stock from buy to hold. While the investment firm actually raised its one-year price target on the stock from $20 per share to $24 per share, its analysts raised concerns about the company's valuation and suggested that shares now offer limited upside.

Shortly after the publication of Clear Street's note, Canaccord chimed in with its own coverage and kept a buy rating on the stock. On the other hand, Canaccord lowered its price target on the stock from $28 per share to $27 per share due to an unexpected sales decline in the preliminary second-quarter numbers published by the company.

What's next for BlackSky?

BlackSky is set to publish its second-quarter results and hold an investor conference call before the market opens on Aug. 7, but investors already have a pretty good idea of what to expect. The company submitted a filing to the Securities and Exchange Commission (SEC) on July 17 that included preliminary results for the company's second quarter.

Revenue fell roughly 11% year over year to come in at $22.2 million, which was significantly below the roughly $27.9 million in sales called for by the average analyst estimate. The company saw a substantial decline in professional-and-engineering services revenue, which was partially attributable to the timing of completing longer-term contracts. Despite already having a pretty good idea of what the Q2 numbers will look like, the company's conference call should give investors an update on BlackSky's Gen-3 satellites and recent contract wins.

Should you invest $1,000 in BlackSky Technology right now?

Before you buy stock in BlackSky Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BlackSky Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,477!*

Now, it’s worth noting Stock Advisor’s total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.