Why Planet Labs Stock Popped Again on Thursday

Core Viewpoint - Planet Labs' stock is experiencing upward momentum due to a new contract expansion with French digital farming company Abelio, which will significantly increase the data available to Abelio for precision farming applications [1][2]. Group 1: Contract Expansion - Planet Labs has expanded its relationship with Abelio, tripling the amount of agricultural data provided to the company, which has been a customer since 2018 [2]. - Abelio utilizes Planet's satellite data for AI models, providing time-sensitive insights for precision farming [2]. Group 2: Benefits of the Contract - The expanded data will help Abelio advise its customers on nitrogen fertilizer needs, potentially reducing nitrogen consumption by 5% to 10% on average, leading to cost savings for farmers [3]. - The additional data should also enhance Abelio's capabilities in irrigation management, crop monitoring, disease detection, and weed detection, while generating more revenue for Planet Labs [3]. Group 3: Financial Implications - The value of the contract expansion has not been disclosed, suggesting it may not be material to Planet Labs' overall financials [4]. - Planet Labs has seen a decline in annual revenue growth, dropping from an average of 25% over the last three years to 12.5% in the last year, making any incremental growth significant [5].