This satellite stock has crashed 66%. Jim Cramer says it's time to start buying
CNBC's Jim Cramer said Planet Labs' lower valuation and improving business are enough to make him start buying.
TL;DR
- Jim Cramer recommends starting to buy Planet Labs stock as it has fallen significantly from its all-time highs.
- Planet Labs operates a fleet of satellites that provide Earth imagery data for various sectors.
- AI is expected to increase the value of Planet Labs' data by aiding in analysis and application development.
- The company's revenue increased 58% in the fiscal second quarter, with defense and intelligence revenue growing over 90%.
- A recent experiment with Google, testing AI chips in orbit, validates Planet Labs' technology and could create new opportunities.
- Risks include increased capital expenditure for satellite development and a high valuation relative to sales.