Why Planet Labs Stock Soared 24.5% This Week

• Planet Labs conscionable signed a ample declaration with Sweden.

• Its terms people was upgraded by Wedbush.

• The banal is soaring but present trades astatine a premium.

• 10 stocks we similar amended than Planet Labs PBC ›

Shares of Planet Labs (NYSE: PL) jumped 24.5% this week -- arsenic of this penning earlier the marketplace unfastened connected Friday, Jan. 16 -- according to information from S&P Global Market Intelligence. Planet Labs operates a outer constellation that sells imaging services to governments and commercialized enterprises, and it has conscionable won different woody with Sweden. Plus, a Wall Street expert upgraded the stock.

Planet Labs' banal is up implicit 600% successful the past year. Here's wherefore the banal is up yet again this week.

Satellite imaging services are a increasing inclination for some subject and commercialized usage cases. Planet Labs has a outer constellation custom-built to service these needs, performing regular planetary high-resolution imaging from abstraction to show assets specified arsenic ports, infrastructure, and subject bases.

Countries are lining up to motion contracts with the company. This week, Planet Labs signed a declaration with Sweden worthy implicit $100 cardinal for imaging services for its military, with payments to beryllium made implicit aggregate years. Signing contracts with these governments is wherefore Planet Labs' backlog grew implicit 200% past 4th to $734 million. Investors are excited astir the fiscal imaginable for these semipermanent authorities deals.

Even much excitement comes from the caller task with Alphabet called Project Suncatcher, which is exploring however to physique artificial quality (AI) information centers successful space. With each this affirmative news, Wedbush upgraded its Planet Labs terms people from $20 to $28, starring the banal to leap adjacent further this week.

After this week's boost, Planet Labs has a marketplace headdress of astir $9 billion. It is present currency travel positive, with escaped currency travel of $35 cardinal implicit the past 12 months.

However, if we look astatine Planet Labs revenue, it is overmuch smaller than its existent marketplace cap. Revenue was $282 cardinal implicit the past 12 months, giving the banal a trailing price-to-sales ratio (P/S) of 32. This whitethorn beryllium a fast-growing business, but it is trading astatine a precocious terms today. Keep Planet Labs banal connected the watchlist for now.

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