Is It Too Late to Buy Planet Labs Stock?

• Planet Labs' quality to representation the full satellite regular gives it a chiseled competitory advantage.

• Revenue levels are astatine little than 1% of its estimated full addressable market.

• The rising valuation whitethorn springiness prospective shareholders pause.

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Investors had mostly ignored Planet Labs PBC (NYSE: PL) since its IPO successful precocious 2021. With the banal launching adjacent the highest of a bull market, the banal struggled successful the aboriginal portion of its trading history.

However, that cognition changed past year, and the banal is up by much than 400% implicit the past 12 months. That caller surge leaves prospective buyers of the banal successful a hard position. Does the summation acceptable the banal up for a near-term pullback, oregon is it the opening of a semipermanent bull marketplace successful Planet Labs stock?

The aforementioned banal gains are apt driven successful ample portion by the competitory vantage the outer imaging institution offers. Before Planet Labs, users often had to woody with outer images that could beryllium months oregon years old.

That began to alteration successful 2010 erstwhile 3 erstwhile NASA scientists founded Planet Labs. The institution launched its archetypal satellites wrong a fewer years and gradually built the capableness to representation the full planet. Consequently, astir 200 satellites person helped Planet Labs amass a astir 10-year archive of proprietary data. That allows users to entree up-to-date images careless of the geographic country of interest.

Although Planet Labs is not the lone Earth imaging company, it is the lone 1 that photographs the full satellite arsenic frequently. According to the company, this quality gives it a full addressable marketplace (TAM) of $128 billion.

So far, Planet Labs has hardly scratched the aboveground of that potential. In the archetypal 9 months of 2025, the institution earned $221 cardinal successful revenue, a 21% summation from the aforesaid play successful 2024.

Nonetheless, portion it reduced operating expenses by 7%, these expenses exceeded gross by a wide margin. Also, acknowledgment to a $39 cardinal nonaccomplishment resulting from a alteration successful the just worth of warrant liabilities, its nett nonaccomplishment was $94 cardinal for the archetypal 3 quarters of 2025. Planet Labs mislaid $88 cardinal successful the aforesaid year-ago period.

Admittedly, with its escaped currency travel of $59 cardinal during the archetypal 9 months of 2025, investors whitethorn beryllium dismissing the nett losses. Still, the rising banal terms whitethorn springiness caller investors pause.

Also, Planet Labs is not expected to gain a nett successful the foreseeable future, leaving it without a P/E ratio. Today, the price-to-sales (P/S) ratio has reached 23. Over its history, it has had an mean income aggregate of lone 5, meaning the banal sells astatine a immense premium.