This week, Planet Labs' stock displayed notable resistance to gravitational forces, exhibiting a robust upward trend.
The shares of satellite company Planet Labs saw a significant increase, dropping by -4.21% but quickly recovering with double-digit growth during recent trading sessions, as reported by S&P Global Market Intelligence. By early Friday morning, the company's shares had experienced a 13% price increase over the past week. The source of this optimism was two business agreements announced within a week's time.
Two agreements sealed
Planet Labs specializes in the collection and analysis of data obtained from satellites orbiting Earth. The second of these agreements was disclosed on Wednesday, involving the company providing ocean data to Global Fishing Watch, a non-profit organization that tracks maritime activities. While the deal isn't substantial, with a value in the six-figure range, it showcases the company's proactive approach to securing new business opportunities.
This news follows an earlier announcement made on Thursday, outlining an expansion of an existing partnership between Planet Labs and Abelio, a "smart farming" technology firm based in France. The two firms already collaborate, with Planet Labs providing satellite data to enhance Abelio's digital agriculture solutions. Unfortunately, specific financial details of the expansion were not disclosed.
Third-quarter revenue predictions
Another factor contributing to Planet Labs' positive trajectory may be the forthcoming release of the company's fiscal third quarter 2025 earnings on December 9. Analysts tracking the stock have predicted a narrower net loss and a nearly 14% increase in revenue compared to the same quarter in 2024. This could lead investors to trust in the company's performance and invest accordingly.
Though the company's recent developments are promising, not all investors may view these agreements as significantly impactful. The market might be overestimating the impact of these partnerships.
Financing for the second agreement between Planet Labs and Global Fishing Watch was secured through appropriate financial channels, demonstrating the company's strong financial standing in investing in new opportunities. With the revenues expected to increase due to the forecasted narrower net loss and a significant growth in third-quarter earnings, more investors might consider investing in Planet Labs, further boosting the finance sector.
