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CNBC’s Jim Cramer said Monday that Planet Labs has finally fallen enough to start buying from all-time highs. The satellite company’s stock is down about 66% from its May 28 high of about $51. The selloff accelerated in June after Planet Labs approved a $1.5 billion stock sale program. Investors also bailed out to move money after SpaceX’s public debut. After that, Planet Labs’ stock price again suffered a prolonged decline, falling on 14 out of 15 business days from late August to September. “Business is looking good at the moment and I think the believers will be rewarded in the end,” the “Mad Money” host said. “If you like Planet Labs as much as I do, I’d put a small position here, leaving room to buy more if the stock continues to fall.” What do you like here? Planet Labs operates a fleet of satellites that image the Earth, providing data to governments and businesses to monitor everything from crops and natural disasters to military installations. Kramer said AI could increase the value of Planet Labs’ vast image archives by allowing customers to more easily analyze that information and build new applications on top of it. Planet Labs’ business is already gaining momentum. Revenue in the second quarter rose 58% to $116.1 million, with defense and intelligence revenue up more than 90%. Management has also identified approximately $4 billion in satellite services opportunities, including approximately $1 billion that it is considering in the near future. Alphabet’s Google provided another impetus. Last week, a Planet Labs prototype powered by four of Google’s custom AI chips reached orbit as part of Project Suncatcher, an experiment to explore whether AI computing infrastructure could eventually operate in space. Planet Labs’ shares rose 8% on Friday on the news, providing a rare reprieve from months of stock decline. Cramer said Google’s decision to work with Planet Labs validates the company’s technology and could open up opportunities beyond satellite imagery, but he also noted some risks. Planet Labs is spending more to build and replace its satellites, raising its annual capital expenditure forecast from $80 million to $95 million to $100 million to $115 million. Stock prices aren’t cheap either. Despite all that selling, Planet Labs trades at about 14 times sales for fiscal 2027, or sales, not earnings. However, when the stock peaked in May, the valuation was much higher. “Remember, this was a penny stock not too long ago,” Kramer said. So lower multiples and improving performance are enough to advise investors to start buying with caution, he said. Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want to delve deeper into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
