$Planet Labs(PL.US)

Actually, PL is really a good stock. From the previous satellite imagery to the current space data center, the overall narrative and moat are very stable, plus Google's investment and the hidden collaboration with Gemini on new AI models. So the future is still very much worth looking forward to.

But the problem is, PL's P/S ratio is really too high, which is also the reason why I haven't pulled the trigger yet. The current price-to-sales ratio is almost 30, which is a very high number and a bit expensive for me. We'll have to look at the quarterly recognized revenue in the upcoming financial reports. If the quarterly recognized revenue shows growth, or if there's new news clearly indicating that the current contracts are being digested faster, then we can consider entering.

First, here's a formula:

p (stock price) = revenue * (p/s ratio) / shares outstanding

Based on the reference formula with a P/S ratio of 25, if the estimated annual revenue can reach 550 million, the stock price has hope of breaking 40.

Of course, if orders are digested faster, it's easy for the P/S to come down, then we'll have to look at the situation with new contracts. Personally, I think we should wait a bit more, either for the P/S ratio to come down or for a clear signal of accelerated digestion.

Not investment advice, I'm not good at this, trust yourself 🤪