Planet Labs stock rises 10% after European contract

Planet Labs' stock fell over 11% on Friday after the company reported disappointing earnings for the last quarter of its fiscal year and warned of more losses ahead. The company, which operates many satellites for Earth observation, saw its shares recover nearly all losses by Monday morning, rising by 10%. The rebound came after Planet Labs announced a significant contract with the European Space Agency (ESA). This new agreement involves helping the Greek government with its satellite program. The ESA signed the deal to support the Hellenic Ministry of Digital Governance. Planet Labs will provide satellite data, which will be managed by the Hellenic Space Center in Greece. The initiative aims to enhance Greece's satellite systems with funding from the European Union. Despite this contract indicating ongoing demand for Planet's services, investors remain cautious. The details of the contract, including its financial size and profitability, were not disclosed. Although the company's losses are shrinking and cash burn rates are slowing, analysts predict it may not turn a profit until at least 2029. As a result, experts are hesitant to recommend Planet Labs stock as a "buy," given the long wait for profits.