Planet Labs shares surged 470% over 12 months but trade at 26 times sales, prompting caution despite strong revenue growth.
Jim Cramer advised investors to avoid blindly chasing Planet Labs PBC (NYSE:PL) after its 470% gain over the past year. The stock, driven by AI-powered Earth observation analytics, trades at 26 times sales despite a recent pullback.
Planet Labs reported 42% year-over-year revenue growth, with defense and intelligence revenue up 65%. Backlog and remaining performance obligations rose 72% and 81%, respectively, reflecting strong demand from government contractors.
While the company’s satellite data and AI tools attract customers, valuation concerns persist. Cramer noted the stock is not as expensive as peers like Rocket Lab but lacks comparable growth.