Remember when you were a kid and thought satellites were just for watching TV? Well, Planet Labs (NYSE:PL) is out here proving that those floating metal boxes can actually make you stupid rich – or at least they did for anyone brave enough to buy this stock at the beginning of the year.
Let’s talk numbers that’ll make your head spin: Planet Labs started 2025 trading at a measly $3.97 per share. Fast forward to now, and it’s sitting pretty at around $17.75. That’s a 340% gain, folks. To put that in perspective, if you’d thrown $1,000 at this thing in January, you’d be sitting on about $4,400 right now. Not bad for a company that literally just takes pictures from space.
So What’s the Deal with Planet Labs?
Think of Planet Labs as the ultimate Instagram influencer, except instead of posting selfies, they’re posting satellite images of Earth. They’ve got a fleet of satellites circling our planet, snapping pics and selling that data to governments and companies who apparently really, really need to know what’s happening down here.
Their business model is pretty sweet: subscription-based data services. It’s like Netflix, but for satellite imagery. Want to spy on your neighbor’s backyard from space? Well, you probably can’t, but NASA, NATO, and the US Navy definitely can – and they’re paying Planet Labs handsomely for the privilege.
The Numbers Don’t Lie (Usually)
Planet Labs just dropped their Q3 earnings, and the market went absolutely bonkers – the stock jumped 37% in a single day. Here’s what got everyone excited:
Revenue hit $81.3 million, crushing estimates of $74 million. That’s a 33% year-over-year increase, which in the satellite business is apparently cause for celebration. They’re also generating positive cash flow, which is finance-speak for “they’re actually making money now.”
The company signed some pretty impressive deals too. NATO gave them a seven-figure contract extension (because apparently even international military alliances need good satellite pics), and they landed an eight-figure deal with an unnamed international defense customer. When defense contractors are throwing around eight-figure checks, you know business is good.
But Should You Buy?
Here’s where things get interesting. Analysts are pumping up their price targets – Needham thinks it could hit $22, while Wedbush is eyeing $20. That’s another 11-12% upside from current levels.
But here’s the thing about stocks that go up 340% in a year: they tend to make people nervous. The price-to-sales ratio is getting pretty spicy after this run-up. It’s like that friend who’s been hitting the gym for six months and now thinks they’re ready for a bodybuilding competition – impressive progress, but maybe pump the brakes a bit.
Planet Labs is operationally profitable and generating free cash flow, which is great. But after a year like this, you might want to wait for a dip before jumping in. Because in the stock market, what goes up 340% can also come down pretty fast.
The space economy is real, and Planet Labs is riding that wave. Just remember: even satellites sometimes crash back to Earth.