U.S. Air Force Budget Surge Positively Impacts Planet Labs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy PL?
Source: Fool
Planet Labs' stock fell 5.02% today, crossing below the 5-day SMA, amid a broader market decline with the Nasdaq-100 down 0.36% and the S&P 500 down 0.34%.
Despite the stock's decline, the U.S. Air Force's announcement of a $338.8 billion budget request for fiscal 2027, which includes a significant increase in spending on satellite communications, positions Planet Labs favorably for future growth. The budget allocates $71.1 billion to the U.S. Space Force, a 124% year-over-year increase, and a 60% increase in satellite communications spending, directly benefiting companies like Planet Labs.
This budget surge indicates robust growth in defense spending, which could lead to increased demand for satellite services. As Planet Labs has a competitive edge in this sector, the company is likely to see improved business prospects in the coming years.
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Analyst Views on PL
Wall Street analysts forecast PL stock price to fall
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 38.290
Low
12.30
Averages
18.93
High
22.00
Current: 38.290
Low
12.30
Averages
18.93
High
22.00
About PL
Planet Labs PBC is a provider of global, daily satellite imagery and geospatial solutions. It designs, builds, and operates the earth observation fleet of imaging satellites. It provides mission-critical data, advanced insights, and software solutions comprising agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to derive value from satellite imagery. Its satellite data and analytics reveal actionable insights regarding phenomena, such as deforestation, agriculture, climate change, biodiversity, and supply chains worldwide. Its daily stream of proprietary data and machine learning analytics, delivered over its cloud-native platform, helps companies, governments and civil society use satellite imagery to discover insights as change happens. Its digital technology platform includes Agile Aerospace, Proprietary Big Data, and Platform and Analytics. Its products include Planet Monitoring, Planet Tasking, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Price Surge: Planet Labs' stock jumped 6% this morning, driven not by company-specific news but by the U.S. Air Force's announcement of a $338.8 billion budget request for fiscal 2027, reflecting a 37.6% increase from fiscal 2026, indicating robust growth in defense spending.
- Space Spending Boom: The budget allocates $71.1 billion to the U.S. Space Force, representing a staggering 124% year-over-year increase, which presents potential market opportunities for satellite companies like Planet Labs, likely boosting their business prospects.
- Investment in Satellite Communications: The budget includes a 60% increase in satellite communications spending to $6.7 billion, directly benefiting Planet Labs, which has a competitive edge in this sector and stands to gain from increased demand.
- Funding for Space Control: The budget request features $21.6 billion for 'space control,' a 158% increase, indicating a shift in military spending towards companies providing space defense services, positioning Planet Labs favorably in this evolving market landscape.
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- Stock Price Surge: Planet Labs' stock jumped 6% this morning, driven not by company-specific news but by the U.S. Air Force's announcement of a $338.8 billion budget request for fiscal 2027, reflecting a 37.6% increase from fiscal 2026, indicating robust growth in defense spending.
- Space Spending Boom: The budget allocates $71.1 billion to the U.S. Space Force, representing a staggering 124% year-over-year increase, which presents potential market opportunities for satellite companies like Planet Labs, likely boosting their business prospects.
- Investment in Satellite Communications: The budget includes a 60% increase in satellite communications spending to $6.7 billion, directly benefiting Planet Labs, which has a competitive edge in this sector and stands to gain from increased demand.
- Funding for Space Control: The budget request features $21.6 billion for 'space control,' a 158% increase, indicating a shift in military spending towards companies providing space defense services, positioning Planet Labs favorably in this evolving market landscape.
See More
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- Automation Company Outlook: Symbiotic is characterized as an automation and robotics firm, and despite competition from Elon Musk, it is seen as having market space; Cramer suggests investors consider buying a few shares for potential gains.
- Planet Labs Price Assessment: Cramer notes that Planet Labs' stock has risen too much, indicating that its current price is unattractive, and advises investors to be cautious and avoid buying at high levels.
- Ollie's Bargain Outlet Concerns: Cramer expresses concern over Ollie's Bargain Outlet's performance, marking its first decline; he plans to conduct further research to understand its future trajectory, demonstrating a commitment to the company.
- Bitcoin Investment Strategy: Cramer mentions that Strategy no longer needs to rely on its products but should invest directly in Bitcoin for more direct exposure, reflecting a keen interest in the cryptocurrency market.
See More
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- Price Range Analysis: UFO's stock has a 52-week low of $21.61 and a high of $55.905, with the last trade at $51.39, indicating a relatively stable market performance that may attract investor interest.
- Technical Analysis Tool: Comparing the current stock price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting market liquidity.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing significant inflows or outflows, which can affect the underlying stocks held within these funds, reflecting market sentiment and investor behavior.
See More
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- SpaceX IPO Anticipation: SpaceX has recently filed confidentially for an IPO, with a projected valuation exceeding $2 trillion, reflecting high investor and public interest in the space sector, which could trigger widespread market reactions.
- Rocket Lab Revenue Surge: Rocket Lab achieved record revenue of $602 million in fiscal year 2025, growing 38% year-over-year, while its backlog soared to $1.85 billion, a 73% increase, demonstrating the sustainability and profitability of the space enthusiasm.
- Planet Labs Revenue Growth: Planet Labs reported revenue of $306 million for fiscal year 2026, with a backlog increase of 79% to $900 million, indicating its broad commercial applicability in the Earth observation sector and solidifying its market position.
- Space Economy Outlook: As significant capital flows into the burgeoning space economy, SpaceX's IPO will mark a milestone, with companies like Rocket Lab and Planet Labs poised to benefit, potentially driving their stock prices higher and showcasing the innovative potential of the space industry.
See More
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- Rocket Lab Revenue Surge: Rocket Lab achieved $602 million in revenue for fiscal year 2025, marking a 38% year-over-year increase, which underscores the lucrative potential and ongoing growth of the space economy.
- Significant Backlog Growth: The company's backlog soared to $1.85 billion, reflecting a 73% year-over-year increase, indicating strong market demand for its services and confidence in future growth prospects.
- Planet Labs' Strong Performance: Planet Labs reported $306 million in revenue for fiscal year 2026, with its backlog growing 79% to $900 million, showcasing its commercial viability and wide-ranging applications in the Earth observation sector.
- Optimistic Space Economy Outlook: With SpaceX's IPO on the horizon, it is expected to catalyze the growth of the entire space economy, positioning companies like Rocket Lab and Planet Labs to benefit from heightened investor enthusiasm and potentially drive their stock prices higher.
See More
Space Stocks Surge Amid Redwire Acquisition
- Space Stock Performance: Driven by Artemis II's successful lunar mission and SpaceX's IPO filing, investor enthusiasm for space stocks has surged, with Firefly Aerospace and Planet Labs trading at price-to-sales ratios of 37 and 40, respectively, reflecting strong market confidence in the sector.
- Redwire's Business Growth: Redwire has achieved a remarkable 370% growth over the past five years, focusing on manufacturing space equipment such as solar arrays and satellite systems, and is considered a safer investment than Rocket Lab with a price-to-sales ratio of 5.7.
- Acquisition of Edge Autonomy: Redwire's $925 million acquisition of Edge Autonomy adds long-range drone products to its portfolio, with analysts suggesting this move synergizes satellite communications with drone capabilities, potentially accelerating sales growth, despite some delays in revenue realization.
- Future Outlook: Analysts forecast Redwire's sales will grow by 41% to $472 million in 2026, although the actual revenue post-acquisition was only $335 million, indicating challenges in meeting growth targets; however, its 6x sales valuation positions it as one of the cheapest stocks in the space sector.
See More
