We came across a bullish thesis on Planet Labs PBC on Bullseye Research’s Substack. In this article, we will summarize the bulls’ thesis on PL. Planet Labs PBC’s share was trading at $22.42 as of February 16th.
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Planet Labs PBC engages in the design, construction, and launch constellations of satellites with the intent of providing high cadence geospatial data delivered to customers through an online platform the United States and internationally. PL has emerged as a standout performer, with shares delivering significant gains, including a fourfold increase from summer levels, reflecting growing investor confidence in the company’s trajectory.
With an average entry price below $7 and the stock now trading above $20, the appreciation has been driven by improving fundamentals and a clear path toward profitability. The company operates in the earth imaging segment within the broader aerospace sector, providing satellite-based data solutions that support industries such as agriculture and defense, both of which benefit from timely geospatial intelligence and monitoring capabilities.
Financial momentum has been notable, with revenues growing 33% year over year and the business coming very close to breakeven in the most recent quarter, missing profitability by less than $1 million. This near-term inflection is critical, as management expects the company to achieve profitability within the next two quarters, which could serve as a major catalyst for valuation expansion. Currently trading at a market capitalization of approximately $6.4 billion, the company is positioned at a stage where operating leverage could materially improve margins as revenue scales.
Looking ahead, guidance for 2026 implies a potential 300% increase in revenues, signaling substantial growth expectations tied to expanding adoption across commercial and government customers. If execution remains on track and profitability materializes as projected, the combination of strong revenue growth, improving margins, and increasing market adoption could justify further upside, making the company an attractive opportunity with a compelling growth narrative supported by an approaching financial turning point.
Previously, we covered a bullish thesis on Planet Labs PBC (PL) by Unconventional Value in April 2025, which highlighted the company’s capital efficiency, low replenishment costs, and strategic avoidance of the launch business. PL’s stock price has appreciated by approximately 583% since our coverage. Bullseye Research shares a similar view but emphasizes on revenue growth and the path to profitability.
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 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.
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Disclosure: None.