BlackSky Technology (BKSY) Soars 35.25% in Three Days on Strong Earnings

BlackSky Technology (BKSY) shares surged 0.87% today, marking the third consecutive day of gains, with a cumulative increase of 35.25% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 4.02%.

The strategy of buying BKSY shares after they reached a recent high and holding for 1 week resulted in a significant loss. The backtest data shows that the average return for this strategy over the past 5 years was -14.29%, with a maximum return of -11% and a minimum return of -18.5%. This indicates that this strategy was not profitable, and investors would have incurred a loss in most cases. The recent high point may not have provided a suitable entry point for this investment, given the subsequent decline in the stock's price.

BlackSky Technology's recent financial performance has been robust, with a 22% increase in total revenue for the first quarter of 2025, reaching $29.5 million. This growth was driven by new contracts, including over $130 million in bookings. The company's net loss improved by $3.0 million year-over-year, and the backlog grew by 40% to $366 million, indicating strong business momentum and increased demand for its services.

The successful commissioning and performance of the first Gen-3 satellite have generated significant demand and interest. The company plans additional Gen-3 launches throughout the year, which will enhance its capabilities and market position. This strategic move is expected to further boost the company's revenue and market share.

BlackSky has secured substantial contracts, including a seven-year subscription contract with an international customer and multi-year agreements to support India's Earth observation capabilities. These contracts contribute to a robust sales pipeline and future revenue growth, positioning the company for sustained expansion.

Analysts from Lake Street and H.C. Wainwright reiterated Buy ratings on BlackSky, with price targets set at $18.00 and $20.00, respectively. These ratings reflect positive sentiment and confidence in the company's growth trajectory, further bolstering investor optimism.

Despite geopolitical dynamics, BlackSky maintained its full-year 2025 guidance, projecting revenue between $125 million and $142 million. This stability in guidance underscores the company's confidence in its growth prospects and ability to navigate external challenges.