Why Planet Labs Stock Popped Today

• Planet Labs conscionable signed a 9-figure woody with Sweden.

• Planet volition merchantability outer information -- and satellites -- to the Swedish military.

• 10 stocks we similar amended than Planet Labs PBC ›

Planet Labs (NYSE: PL) banal announced this greeting it has signed a "9-figure woody with Sweden."

The banal jumped 6.2% done 11:15 a.m. ET Monday successful response.

For the 3rd clip successful a year, Planet Labs has signed a "major outer services contract" with a overseas government, this clip with the Swedish subject (Japan and Germany were the erstwhile counterparties). The institution volition "rapidly present a suite of satellites, space-based information and consciousness solutions to enactment the country's bid and information operations."

What's funny astir this announcement is the archetypal portion of that description: Planet volition "deliver" satellites to Sweden. More than conscionable selling information collected by its satellites, successful the instant case, Planet Labs confirms Sweden wants to really buy some of its satellites (in summation to paying for data). The state volition virtually "own a suite of Planet's cutting-edge satellites," says Planet.

Is it amended to merchantability satellites oregon to ain them and make recurring gross from the information they produce? That's an unfastened question. Own them... and you person to wage to regenerate and upgrade them implicit time, incurring superior costs. Sell them, though, and you've arguably created a marque caller gross watercourse selling full satellites to a customer!

And it appears Planet is present getting the champion of some worlds.

Management noted the caller woody volition beryllium "multi-year" (it didn't accidental however many), and worthy "low 9-figure." By my count, that means $100 million, minimum. Spread over, say, 10 years, that's astatine slightest different $10 cardinal successful yearly gross -- capable to determination the needle for a institution that did conscionable $282 cardinal successful gross implicit the past year.

And the shorter the contract, the much this needle volition move.

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