Planet Labs Stock at Record Highs: Is the Buying Window Closing?

Planet Labs (PL) has surged to a 52-week high above $28, reflecting strong momentum in the space-based data analytics sector. The rally follows the company’s expanded partnership with Microsoft (MSFT) to integrate satellite imagery into Azure’s AI platforms, alongside a $180 million contract win with the U.S. Department of Defense. These developments have accelerated PL’s revenue growth, which reached $142 million in Q4 2025—a 37% year-over-year increase. Despite robust fundamentals, the stock’s recent performance raises strategic concerns. PL’s price-to-sales ratio now stands at 14.2, significantly above the sector median of 6.8, signaling potential overvaluation. Meanwhile, its 52-week price range spans $10.40 to $28.15, with the current level near the upper bound. This suggests limited downside buffer for new investors entering at current levels. Market reaction has been mixed. While institutional ownership increased by 18% in Q4, short interest remains elevated at 12.3% of float, indicating skepticism among contrarians. Competitors like SpaceX’s (SPCE) Starlink and Intel (INTC)-backed Synspective are advancing satellite data infrastructure, potentially pressuring PL’s market share in the long term. Investors should weigh the balance between growth potential and valuation risk. The company’s 40% gross margin and expanding commercial pipeline provide a solid foundation, but sustained investor confidence will depend on continued contract wins and margin expansion. For long-term holders, the stock remains a strategic play on Earth observation data. For tactical traders, the recent ascent may warrant caution.