Planet Labs PBC (PL): A Bull Case Theory

We came across a bullish thesis on Planet Labs PBC on Student of Value’s Substack by Student. In this article, we will summarize the bulls’ thesis on PL. Planet Labs PBC's share was trading at $25.32 as of January 13th.

Planet Labs has rapidly transformed from a satellite imagery provider into an AI infrastructure play, driven by a combination of record backlog growth, AI integration, and strategic partnerships. Following its FY26-Q3 earnings, the stock surged roughly 35%, reaching $19 per share with a $6 billion market cap and 20x forward sales.

The company’s Remaining Performance Obligations (RPO) grew 361% year-over-year to $672 million, with total backlog at $735 million, nearly three times annual revenue and providing unprecedented visibility into future cash flows. Planet’s revenue rose 33% year-over-year to $81.3 million, led by over 70% growth in the Defense sector, while free cash flow turned positive for the third consecutive quarter.

Thematic shifts in investor perception have emphasized the unique temporal dataset Planet has built over a decade, comprising roughly 1,700 daily images of every location on Earth, which positions the company as a critical provider of training data for geospatial AI models. Strategic moves, including the Google Project Suncatcher partnership, the Bedrock Research acquisition, and the deployment of AI-enabled Pelican and Owl satellites, reinforce Planet’s capabilities in space-based edge computing and predictive analytics.

Defense and government contracts continue to expand, driving 70% year-over-year growth in this segment. Planet Labs is now positioned at the intersection of sovereign geospatial control, AI-driven data monetization, and space infrastructure, offering investors with a multi-year horizon exposure to durable structural trends, while execution on backlog conversion, satellite deployment, and AI integration will determine its ultimate success.

Previously, we covered a bullish thesis on Planet Labs PBC (PL) by Unconventional Value in April 2025, which highlighted its capital efficiency, strategic launch choices, and low reinvestment needs for the Dove constellation. The stock has appreciated approximately 610.97% since coverage. This played out as Planet leveraged operational efficiency and launch economics. Student shares a similar view but emphasizes the transformation into an AI infrastructure play with backlog growth, AI satellites, and strategic partnerships.

Planet Labs PBC is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held PL at the end of the third quarter which was 32 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.