Planet Labs (PL) Shares Drop 10% Despite 216% Backlog Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Yahoo Finance
- Backlog Surge: Planet Labs' backlog skyrocketed by 216% to $734 million year-over-year, indicating strong demand from defense and corporate clients for its satellite imaging services, although recent stock declines reflect market concerns about valuation.
- Strong Earnings: The company reported a 33% year-over-year revenue increase to $81 million, yet its high price-to-sales ratio of 28 raises investor caution, suggesting potential volatility in stock prices as the market reassesses its value.
- Insider Selling Signal: CFO Ashley Johnson's $4 million stock sale may be perceived negatively by investors, contributing to concerns about the company's future prospects and adding pressure on the stock price.
- Market Environment Impact: Planet Labs shares fell 10% this week due to market turbulence surrounding Greenland tariffs, highlighting the vulnerability of speculative stocks despite overall market recovery, necessitating investor vigilance regarding market sentiment shifts.
Analyst Views on PL
Wall Street analysts forecast PL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PL is 18.93 USD with a low forecast of 12.30 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 25.870
Low
12.30
Averages
18.93
High
22.00
Current: 25.870
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.
