What Happened?
Shares of earth imaging satellite company Planet Labs (NYSE: PL) jumped 54.6% in the afternoon session after the company reported impressive "beat and raise" first quarter 2025 results, which blew past analysts' revenue, EPS, and EBITDA expectations.
The company reported triple-digit growth in key growth indicators, including RPO and backlog, demonstrating the health of its sales pipeline. Adding to the positive aspect, it lifted its full-year revenue guidance.
Zooming out, we think this quarter featured some important positives.
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What The Market Is Telling Us
Planet Labs’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. But moves this big are rare even for Planet Labs and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 5.4% after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Planet Labs is up 54% since the beginning of the year, and at $6.12 per share, it is trading close to its 52-week high of $6.49 from February 2025. Investors who bought $1,000 worth of Planet Labs’s shares at the IPO in April 2021 would now be looking at an investment worth $617.68.
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