Planet Labs?

US Market & Sectors
1

Whats your take on Planet Labs? Recently gained momentum.

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I’m adding some context for others.

Planet Labs (PL) is a leading provider of daily Earth data and insights, operating a large constellation of Earth observation satellites.

Recent Performance: As of December 27, 2024, Planet Labs’ stock closed at $4.38, marking a 3.10% decline from the previous day. Over the past year, the stock has appreciated by approximately 78.78%…

The Good Stuff

  1. Unique Business Model: Planet Labs runs the largest fleet of Earth observation satellites. Their satellites provide daily imagery and insights, which are critical for industries like agriculture, defense, and climate monitoring. Think Google Maps but updated every single day.
  2. Revenue Growth :chart_with_upwards_trend:: Last quarter, they posted $113.1 million in revenue—a 206% YoY increase. That’s some serious growth! And they’re landing big contracts, so there’s no shortage of customers lining up.
  3. Analyst Love : Wall Street has a “Moderate Buy” rating on this one, with price targets between $3.10 and $5.00. The average target is $4.33, which is just a bit above where it’s trading now.
  4. Long-Term Potential: With industries increasingly relying on data for things like disaster response and crop management, Planet Labs’ tech could be a game-changer.

The Sketchy Bits

  1. Competition is Fierce: Players like SpaceX (Starshield) and others in the satellite game could eat into their market share. Space tech is not exactly a niche anymore.
  2. Still Not Profitable : Yep, they’re burning cash. Growth is awesome, but eventually, they need to show they can turn a profit.
  3. Volatility: This stock can be all over the place. If you don’t have the stomach for it, you might want to pass.
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Invest if you’re a long-term investor who believes in the future of Earth observation tech as an industry.

Avoid if you’re looking for something safer.

4

I’d rather bet on SpaceX and Elon. This stock would tank as soon as the news of SpaceX going public comes online. Won’t be able to beat them in marketing and capturing the market.

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When the entire space tech industry grows, everyone will benefit, not just SpaceX. Planet Labs isn’t trying to beat SpaceX—they’re playing a different game.

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I too think the entire space and satellite sector is going to grow in years to come. But I don’t think SpaceX pose a threat to Planet Labs. SpaceX is for deep space exploration, whereas the latter use satellite to track geographical changes etc etc. Also, I read an article that says US military is one of their biggest customers. So, yeah if we are willing to bet long term, i guess it will payoff.

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100% agree with you.