Planet Labs PBC (PL) Rallied on Improved Investor Sentiment

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. The Conestoga Micro-Cap Composite returned 11.7% net-of-fees in the third quarter, compared to the Russell Microcap Growth Index’s return of 19.9%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Planet Labs PBC (NYSE:PL). Planet Labs PBC (NYSE:PL) engages in the design, construction, and launch of constellations of satellites that provide high cadence geospatial data. The one-month return of Planet Labs PBC (NYSE:PL) was 18.00%, and its shares gained 465.09% of their value over the last 52 weeks. On October 17, 2025, Planet Labs PBC (NYSE:PL) stock closed at $13.11 per share, with a market capitalization of $4.037 billion.

Conestoga Capital Advisors stated the following regarding Planet Labs PBC (NYSE:PL) in its third quarter 2025 investor letter:

“Planet Labs PBC (NYSE:PL) operates the world’s largest fleet of Earth-imaging satellites, providing daily imagery and analytics to customers in defense, intelligence, agriculture, environmental monitoring, and commercial sectors worldwide. This is the second consecutive quarter this stock was a portfolio leader as the company continues to benefit from new multi-year defense contracts and expanding partnerships in agriculture, climate monitoring, and energy supported revenue growth. Improving unit economics and disciplined expense management bolstered the margin outlook, while progress toward profitability lifted investor sentiment.”

Planet Labs PBC (NYSE:PL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Planet Labs PBC (NYSE:PL) at the end of the second quarter, up from 23 at the end of the previous quarter. In the second quarter of fiscal 2026, Planet Labs PBC (NYSE:PL) reported $73.4 million in revenue, representing approximately 20% year-over-year growth. While we acknowledge the potential of Planet Labs PBC (NYSE:PL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.