Spire Global Stock Plunges After Hours: What's Behind the Drop?

Spire Global, Inc. (NYSE: SPIR) stock price took a nosedive after hours on February 11, 2025, following the company's earnings report for the first quarter of 2024. The stock price declined by approximately 19.40% from its high of $24.00 to its current price of $19.85. Investors are left wondering what's behind this significant drop in the company's stock price.



Spire Global reported earnings per share (EPS) of -$0.53 for Q1 2024, which was lower than analysts' expectations of -$0.68. This earnings miss may have contributed to the stock price decline. Additionally, while Spire Global reported record revenue for the tenth consecutive quarter, the growth rate of 32% for the full year 2023 was lower than the previous year's growth rate of 85.06%. This slowdown in revenue growth may have raised concerns about the company's future growth prospects.

Spire Global's guidance for the next quarter may have also contributed to the stock price drop. The company expects EPS of -$0.28 for Q2 2024, which is lower than the previous quarter's EPS of -$0.12. This less optimistic outlook for future earnings may have spooked investors.

Despite the earnings miss and subsequent stock price drop, analysts still have a positive outlook on Spire Global's long-term prospects. The average analyst rating for Spire Global stock is "Strong Buy," and the average price target has increased to $20.4, with a high estimate of $24.00 and a low estimate of $16.00. This suggests that analysts believe the stock is undervalued at its current price.



In conclusion, Spire Global's stock price decline after hours can be attributed to several primary factors, including an earnings miss, slowdown in revenue growth, and less optimistic guidance for future earnings. However, analysts still maintain a positive outlook on the company's long-term prospects, suggesting that the stock may be undervalued at its current price. As an investor, it's essential to stay informed about the company's financial performance and market outlook to make well-informed decisions.