Up 96% in Just 1 Month, Is Planet Labs Now Too Pricey to Buy?

Planet Labs (NYSE:PL) has been on a tear, soaring 388% in 2025 and up another 96% since reporting earnings one month ago. The stock is up an incredible 811% from its 52-week low of $2.79 per share. While it has been winning significant government contracts, such as yesterday’s announcement that it won a nine-figure contract from the Swedish government, which drove the stock 12% higher, PL is unprofitable and likely won’t be for some time. 

While it has strong tailwinds behind it and a substantial total addressable market (TAM) that it has only just scratched the surface on, has it simply come too far, too fast and is now too expensive to buy?

A Daily Earth Monitoring Powerhouse

Planet Labs operates the world’s largest fleet of Earth-imaging satellites, capturing high-resolution imagery of the entire planet daily. The company collects and analyzes data from over 200 satellites, including its Dove constellation for medium-resolution coverage and SkySat for high-resolution tasking. This enables applications in agriculture, defense, energy, and environmental monitoring. 

What sets Planet Labs apart from other space stocks, such as launch-focused companies like Rocket Lab (NYSE:RKLB | RKLB Price Prediction), is its emphasis on data products and analytics rather than hardware or propulsion. While competitors may provide sporadic imaging, Planet Labs delivers consistent, global daily scans, processed through machine learning platforms for actionable insights like change detection and object identification.

Space Sector Boom Fuels the Surge

The market has suddenly latched onto Planet Labs amid broader enthusiasm for space stocks. Sector tailwinds include rising demand for satellite data in climate tracking and national security. SpaceX’s expected IPO later this year has amplified investor interest in space-related firms, drawing attention to players like Planet Labs. 

Since its Dec. 10 fiscal third quarter 2026 earnings call, where it reported record revenue of $81 million (up 33% year-over-year), the stock has climbed sharply. However, whether this warrants Planet Labs’ current valuation — trading over $25 per share with a market cap approaching $8 billion — is debatable, given its lack of profits (though it did report adjusted EBITDA of $5.6 million in Q3) and forward multiples well above peers.

A $128 Billion Opportunity Barely Tapped

Planet Labs’ total addressable market stands at $128 billion, encompassing satellite imagery, analytics, and related services across industries. With revenue of over $221 million for the first three quarters of 2025 and a trailing 12-month revenue of around $295 million, the company has only tapped into about 2% of this potential. This limited penetration highlights a substantial growth runway, as expanding satellite fleets and artificial intelligence (AI)-driven analytics open new markets in commercial sectors like insurance, finance, and supply chain management.

Planet Labs has secured an impressive string of government contracts, providing extended revenue visibility through multi-year agreements. The recent low nine-figure deal with the Swedish Armed Forces allows Sweden to own satellites and access Planet Labs’ data for defense needs. This follows expansions with the German government and a seven-figure NATO contract for constant surveillance. 

These deals contribute to record remaining performance obligations of $672 million (up 361% year-over-year) and backlog of $734 million (up 216%). While government work offers stability, the commercial sector represents a key growth opportunity, diversifying revenue beyond defense. Collectively, these factors indicate Planet Labs still has room to grow.

Key Takeaway

Despite the clear runway for growth through TAM expansion and contract momentum, Planet Labs trades at a premium valuation, and profitability remains over the horizon as it invests in satellite deployment and technology. Government contracts can be a double-edged sword, since changes in policy or budget constraints could affect future funding.

While Planet Labs remains a stock worth buying for long-term investors, now is not the time to aggressively accumulate shares. Waiting for a pullback to build bigger stakes is probably the best strategy.