Planet Labs PBC (PL): A Bull Case Theory

We came across a bullish thesis on Planet Labs PBC (PL) on r/stocks Subreddit by No_Smile821. In this article, we will summarize the bulls’ thesis on PL. Planet Labs PBC (PL)'s share was trading at $6.93 as of 8^th July.

Planet Labs (PL), a Silicon Valley-based satellite software and hardware company, is emerging as a compelling player in the fast-accelerating satellite technology race. With global demand for satellite infrastructure skyrocketing—fueled by the success of Starlink and the aspiration of governments and corporations to replicate similar constellations—companies like PL are well-positioned to capture substantial upside.

The sector is expected to see the launch of hundreds of thousands of satellites over the next decade, driving demand for PL’s core offerings. Currently trading at $6.80 per share, well below its IPO price of $10, PL has a $2 billion market cap and reported $244 million in 2024 revenue, reflecting 10% year-over-year growth.

Yet the game-changer came last month when Planet Labs secured a $250 million contract with the German government—effectively matching its entire annual revenue in one deal and signaling growing credibility on the global stage. More recently, the U.S. Navy granted PL a sole-source contract, reinforcing its strategic importance to national defense.

These developments suggest a rapid shift in perception from under-the-radar player to critical infrastructure provider. With stable, recurring revenue from government and enterprise clients, increasing demand from the private space race, and growing institutional recognition, Planet Labs is drawing comparisons to early-stage Rocket Lab (RKLB) and AST SpaceMobile (ASTS).

Investors see the potential for a multi-bagger outcome, with No_Smile821 projecting a path to $50 per share if PL’s valuation aligns with peers on a revenue multiple basis. Given its recent contract wins and sector tailwinds, PL offers a high-upside opportunity at an inflection point.

Previously we covered a bullish thesis on Planet Labs PBC (PL) by Unconventional Value in April 2025, which highlighted the company’s capital-efficient satellite operations, strategic reliance on SpaceX, and potential upside from declining launch costs. The company’s stock price has appreciated approximately by 111% since our coverage. This is because the thesis played out, with PL maintaining efficiency while securing high-value contracts. No_Smile821 shares a similar view but emphasizes recent government wins as a catalyst for re-rating and broader strategic relevance.

Planet Labs PBC (PL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held PL at the end of the first quarter which was 19 in the previous quarter. While we acknowledge the potential of PL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.