Planet Labs shares surge on Berlin facility hiring
Satellite maker begins recruitment for German manufacturing site to double Pelican production capacity
Planet Labs shares advanced 4% on Wednesday, approaching the stock's 52-week high, as the Earth observation company began recruiting for a new satellite manufacturing facility in Berlin that will double production capacity of its next-generation spacecraft.
The stock gained $1.18 to trade at $33.06, closing in on its 52-week peak of $36.28 reached earlier this month. The rally comes as Planet Labs initiates hiring for up to 70 new positions at the Berlin site, adding to its existing team of approximately 150 employees in the German capital, according to a company announcement.
The San Francisco-based company, which operates a constellation of more than 200 Earth-imaging satellites, is investing an "eight-figure" sum in the expansion. The Berlin facility will focus on manufacturing its high-resolution Pelican satellites, complementing existing production at its California headquarters and significantly boosting overall output.
"This strategic move reinforces Germany's role in advanced aerospace engineering and strengthens Europe's access to sovereign, AI-enabled Earth observation capabilities," the company stated in its March announcement.
The Berlin expansion builds on Planet Labs' initial announcement in September 2025, when the company revealed plans to establish European satellite manufacturing capacity. That strategy followed significant contract wins in the region, including a multi-year €240 million agreement with the German government and a separate contract with NATO, as detailed in the September 2025 release.
Wednesday's stock move reflects growing investor confidence in Planet Labs' European strategy, though the company's valuation remains elevated despite its rapid revenue growth. The stock now commands a market capitalization of $11.5 billion, trading at 37.5 times trailing twelve-month revenue of $307.7 million. Revenue has expanded 41% year-over-year, yet the company remains unprofitable with earnings per share of negative 80 cents over the same period, according to market data.
Analysts maintain a broadly positive outlook on the shares, with 7 of 10 analysts rating the stock a buy or strong buy and the remaining 3 at hold. The consensus price target stands at $30.93, below current trading levels, suggesting some caution on valuation even as growth prospects remain intact.
Technical indicators suggest the recent rally may be extended. The stock's relative strength index sits at 71, typically considered overbought territory and often preceding short-term pullbacks. However, the company's fundamental momentum has been building steadily, with the 50-day moving average at $25.05 and the 200-day average at $14.24, reflecting a powerful uptrend over the past six months.
Planet Labs, founded in 2010, has positioned itself as a leader in providing persistent, daily Earth observation data to customers in agriculture, forestry, government, and commercial markets. The company's Berlin office has served as its European headquarters and Mission Control center for its global satellite fleet for more than a decade.
The new manufacturing facility represents a significant step in Planet's strategy to localize production closer to key European government and commercial customers. European governments have increasingly emphasized the importance of sovereign space capabilities for security and environmental monitoring, creating opportunities for providers who can establish regional operations.
Planet's European expansion comes amid broader growth in the Earth observation market, driven by increasing demand for climate monitoring, infrastructure assessment, and agricultural optimization. The company's ability to provide daily, high-resolution imagery has differentiated it from traditional satellite operators that offer less frequent coverage.
Investors will be watching for updates on the Berlin facility's construction timeline and production ramp, as well as any additional European contract announcements that could validate the expansion strategy. With the stock trading near record highs and technical indicators stretched, the company's ability to execute on its growth plans will be critical to sustaining current valuation levels.