Planet Labs (PL) Shares Drop 10% Despite 487% Annual Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Fool
- Stock Price Decline: Planet Labs' shares fell approximately 10% this week due to overall market turbulence and a negative signal from the CFO's $4 million stock sale, despite a remarkable 487% increase over the past year.
- Strong Financial Performance: The company reported a 33% year-over-year revenue growth to $81 million, while its backlog surged 216% to $734 million, indicating robust demand for its satellite imaging services from defense and corporate clients.
- Valuation Concerns: With a market cap of $8.33 billion and quarterly revenue of only $81 million, Planet Labs has a price-to-sales ratio of 28, raising investor concerns about its valuation and potentially leading to future stock price volatility.
- Cautious Outlook: Despite securing numerous new contracts, analysts suggest that Planet Labs is not a buy at current price levels due to its high P/S ratio and lack of profitability, advising investors to exercise caution.
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.
