Planet Labs Stock Is Down 67% From Its High. Time To Buy?

Planet Labs stock has experienced a 67% decline from its peak following its rapid growth driven by high demand for its timely Earth imagery. Despite the sales decline, the company continues to generate about $21 million in free cash flow, as its revenue for the first half of fiscal 2027 reached $210 million, a 44% increase from the same period in 2025.

Planet Labs' unique service, daily satellite imagery, is challenging to replicate, as competitors only provide outdated images. This has proven valuable for organizations needing real-time information about environmental, infrastructure, or geopolitical events. The company's revenue is also powered by government contracts, which likely contributes to the stock's resilience.

However, the stock's recent decline has led to concerns about its high price-to-sales ratio and the company's $1.5 billion equity dilution program. Despite these challenges, analysts remain optimistic, predicting 42% revenue growth for the current fiscal year and 31% growth in fiscal 2028. Given the current price, some investors might find buying Planet Labs stock an opportunity, using a dollar-cost averaging approach to manage risk.