Is PL a good stock to buy? We came across a bullish thesis on Planet Labs PBC on EAA Partners’s Substack. In this article, we will summarize the bulls’ thesis on PL. Planet Labs PBC’s share was trading at $48.32 as of May 26th.
Copyright: lexaarts / 123RF Stock Photo
Planet Labs PBC engages in the design, construction, and launch of constellations of satellites with the intent of providing high-cadence geospatial data delivered to customers through an online platform in the United States and internationally. PL is positioned as a uniquely differentiated Earth observation company built around the only commercial satellite constellation capable of imaging the Earth’s entire land surface on a daily basis. The company’s core thesis rests on its 15-year proprietary archive of continuously collected satellite imagery, which management believes has created an irreplicable competitive moat for AI-driven geospatial intelligence.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Planet operates more than 200 satellites across multiple constellations, serving governments, defense agencies, agricultural firms, and enterprise customers through a recurring subscription-based data model with strong operating leverage and growing margins. The company’s investment case has strengthened significantly following accelerating demand from sovereign governments and defense customers after the Ukraine conflict highlighted the strategic value of persistent daily monitoring over traditional high-resolution tasking systems.
Planet has already secured more than $500 million in sovereign satellite services contracts from Germany, Sweden, and Japan, while its total backlog has expanded to approximately $900 million, providing strong visibility into future revenue growth. Management expects FY2027 revenue growth of nearly 40%, supported by defense and intelligence demand, AI-enabled analytics products, and expanding commercial adoption of its Large Earth Model platform.
The company also achieved its first full year of positive EBITDA and free cash flow in FY2026, demonstrating that its one-to-many data subscription model can scale profitably. Bulls believe Planet is evolving from a satellite imagery provider into a foundational Earth intelligence platform combining proprietary data, AI analytics, and sovereign infrastructure services. If execution continues and AI-driven analytics monetization accelerates, the company could justify significantly higher valuations over time, with the bull case outlined in the report implying potential upside toward $80-$120 per share over a five-year horizon.
Previously, we covered a bullish thesis on Planet Labs PBC by Unconventional Value in April 2025, which highlighted the company’s capital-efficient satellite operations and low constellation maintenance costs. PL’s stock price has appreciated by approximately 1,373% since our coverage. EAA Partners shares a similar view but emphasizes on Planet’s proprietary Earth observation archive, sovereign demand growth, and AI-driven geospatial intelligence opportunity.
Planet Labs PBC is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held PL at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the risk and potential of PL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
