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Great video as usual! It would be great to hear your team’s opinion on PL after Q2 2023 earnings call and the consequent price drop down to 3-3.4 range 🙏
I also follow PL. The sales growth is good, and I agree management comes across as competent. However, their operating margins are pretty bad (just comparing sales to SG&A) and I have a hard time seeing how they will be able to make it as a stand alone business. I could see Planet as part of another software stack, but I cannot see how they become a profitable company. I also wonder how their status as a Public Benefit corp impacts the share price. It makes it much harder for them to be acquired.
We brought up the PBC before as a risk. Do not like that at all, and hope it's just lip service. Also share your concerns on margins, but management assures investors they can hit 70-80% gross margins as they scale. We'll see. Good comment, thank you!
@Nanalyze i read the nitty gritty on planet labs PBC mission vs the PBC law wording... and out of "employees, community, environment and social change", planet labs opted only for environmental and social change which is quite broad... they also worded it as "planet labs will illuminate", meaning basically the directors are legally obliged to be tattle tales on other corporations, which im fine with lol, i just read a story where PL spilled the beans on the UK governments sewage pollution... legally, the company must inform the public of environmental or social issues they find, thats all
Thank you for supporting our channel Shelby! Looking out to the stars harkens back to the most primitive desires of mankind - to explore the unknown. Few topics are as fascinating as the universe and what might be found in that vast expanse.
I’m Sure you have good reason’s why you do not consider IRDM in your “Best Space Stocks” Category. Perhaps this is because iridium is a Communications stock for the most part. I’m just curious. I find this Company quite compelling. It appear to be do well despite market force.
We check in with stocks annually, not quarterly. And we don't always make a video when we check in. A lot of our check-ins are articles published on our website. Feel free to sign up for our free newsletter if that's something you're interested in! www.nanalyze.com/nanalyze-weekly/
I’m concerned how this SVB debacle is going to effect the tech sector, particularly Planet Labs, because I hold a decent sized position in PL. I doubt rocket lab has exposure, because there not a US based company, but I don’t know. What are your thoughts Joe?
The same question could be asked of many companies, and it's really pointless to start making assumptions as to who has exposure to what. Just too early to tell at this point. Panic is usually evident when the VIX spikes heavily, and that's now starting to show signs of life. Let's see what happens Monday.
Going to add one more thing. Whoever was in charge of risk management at that firm should be crucified for walking right into the same trap that transpired in 2008. But of course, we need to wait for the dust to settle and see what actually happened. Our cursory understanding is that they were betting on risky MBS products, something we called out Silvergate for doing: www.nanalyze.com/2021/06/silvergate-capital-cryptocurrency-bank/
What risk management?, and Where was the San Francisco Fed in all of this? The stress tests? It appears as though SBV had all there eggs in one low interest basket. Yikes! I heard a rumor that BAC was going to step up buy them. Just more speculation, but I do think one of the major institutions will have to step in and buy them or this will get ugly fast!
There are rumors that Starshield (EO for SpaceX) might be getting into the industry. Maxar acquisition was announced a week after people discovered this. Do you have any thoughts or is the lack of data available/ speculation something that limits the answer? “While Starlink is designed for consumer and commercial use, Starshield is designed for government use, with an initial focus on three areas: Earth observation, communications and hosted payloads,” the company said on its website.”
Great comment here, thank you for raising this! Looks like our assumption about SpaceX not getting into earth observation was flat wrong. That said, looks like this will target government which means BlackSky ought to be extremely concerned. For Planet, it's also concerning with Defense & Intelligence (D&I) and Civil Government making up 65% of total revenues last quarter. Note that government typically likes to utilize multiple vendors to reduce risk so room for more than one player. Thank you for adding this key tidbit of info.
Would probably need to reevaluate that if SpaceX goes public. Rocket Lab is in the process of playing catch up, but there are still things to like about the company.
@@Nanalyze if that happens then yes they'll take a back seat NO doubt. But Rocket Lab is second only to SpaceX in US launches and only going to get better over time. They'll always be the little brother to SpaceX but again SpaceX is only going to be in the big rocket space while Rocket Lab will cover small and medium sized launches. And I don't see Firefly or Relativity Space being a competitors just yet as RKLB is ahead of the game right now I'm that category. That's just my take on that.
From an investor's perspective, SpaceX only comes into play if they become publicly traded, though their competitive pressures still need to be considered for Rocket Lab investors. Just remember that as Rocket Lab gets better over time, so does SpaceX. There's always room for more than one launch provider as you said and Rocket Lab and SpaceX are the leaders to consider.
@@Nanalyze Rocket lab and Space X have very different goals. Rocket Lab's market goal is to be a highly competitive and complete space services stack with services primarily for commercial gain. SpaceX's goals (as far as I can tell) are mainly to earn sufficient funding from StarLink to populate Mars.
There market cap is low enough I do not see why Star Link or someone else would just acquire them outright? Especially "if" the macro conditions continue to worsen. Could be a prime candidate for an arbitrage play.
We've talked about before why it doesn't seem likely Starlink will mess around with geospatial imaging which is a commodity. PL has a simple valuation ratio of six. If you think there's some arbitrage opportunity because it's so "cheap," on what basis exactly are you making that statement? Maxar was acquired at an SVR of 1 (now 3 following the announcement).
Commenter mentioned SpaceX is getting into geospatial intelligence for government with Starshield. Build vs buy might have gone with build. The old first principles thinking strikes again.
Hiya. For growth companies we look at revenue growth as a proxy for market share captured. In a bear market where access to capital dries up, we look at gross margin and runway for survivability metrics. Agree that we'd like to see more language from management on when profitability is expected.
Maybe that whole PBC thing means they're giving away services for free. Annoying if that's the case. We're not looking to invest in charities of which there are over one million in the USA.
@Joe P. I have seen before where they think giving a free initial trial service will lead to a big contract but some big companies take advantage for instance look at arrival produced the evs for royal mail but nothing on their calls or royal mails because royal mail are using trial services even with drone delivery in Scotland isles
Joe, good video! The coupon 30NANALYZEXMAS is invalid, and the special offer should be active until tonight 11:59 pm. This is my gift for 2023, and please advise!
The UA-cam coupon was good until the end of the year (25% off), but just for you we'll open up the 30% off coupon until tonight at midnight (the coupon you tried to use)! Just reenabled the coupon now and it should work. As they say, please try again. Thank you so much for the financial support!
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Great video as usual! It would be great to hear your team’s opinion on PL after Q2 2023 earnings call and the consequent price drop down to 3-3.4 range 🙏
We sent an alert to Premium subscribers on this. We may do a follow up piece sooner than later as well.
For myself, I like the trajectory Rocket Lab (RKLB) is taking.
Nice one.
I also follow PL. The sales growth is good, and I agree management comes across as competent. However, their operating margins are pretty bad (just comparing sales to SG&A) and I have a hard time seeing how they will be able to make it as a stand alone business. I could see Planet as part of another software stack, but I cannot see how they become a profitable company. I also wonder how their status as a Public Benefit corp impacts the share price. It makes it much harder for them to be acquired.
We brought up the PBC before as a risk. Do not like that at all, and hope it's just lip service. Also share your concerns on margins, but management assures investors they can hit 70-80% gross margins as they scale. We'll see. Good comment, thank you!
@Nanalyze i read the nitty gritty on planet labs PBC mission vs the PBC law wording... and out of "employees, community, environment and social change", planet labs opted only for environmental and social change which is quite broad... they also worded it as "planet labs will illuminate", meaning basically the directors are legally obliged to be tattle tales on other corporations, which im fine with lol, i just read a story where PL spilled the beans on the UK governments sewage pollution... legally, the company must inform the public of environmental or social issues they find, thats all
thanks for the great rundowns on space tech.. been an amateur astronomer for years and like to invest in what i love
Thank you for supporting our channel Shelby! Looking out to the stars harkens back to the most primitive desires of mankind - to explore the unknown. Few topics are as fascinating as the universe and what might be found in that vast expanse.
@@Nanalyze i SUPER appreciate your videos!
Aww, that's very nice of you to leave us such kind words. It makes all the hard work worthwhile. We'll keep it up!
I’m Sure you have good reason’s why you do not consider IRDM in your “Best Space Stocks” Category. Perhaps this is because iridium is a Communications stock for the most part.
I’m just curious. I find this Company quite compelling. It appear to be do well despite market force.
Incoming: ua-cam.com/video/1d8qznpDhYo/v-deo.html
Thanks Joe, I figured you had good reasons.
when will you make a new video for the latest quarter?
We check in with stocks annually, not quarterly. And we don't always make a video when we check in. A lot of our check-ins are articles published on our website. Feel free to sign up for our free newsletter if that's something you're interested in! www.nanalyze.com/nanalyze-weekly/
I’m concerned how this SVB debacle is going to effect the tech sector, particularly Planet Labs, because I hold a decent sized position in PL. I doubt rocket lab has exposure, because there not a US based company, but I don’t know. What are your thoughts Joe?
The same question could be asked of many companies, and it's really pointless to start making assumptions as to who has exposure to what. Just too early to tell at this point. Panic is usually evident when the VIX spikes heavily, and that's now starting to show signs of life. Let's see what happens Monday.
Going to add one more thing. Whoever was in charge of risk management at that firm should be crucified for walking right into the same trap that transpired in 2008. But of course, we need to wait for the dust to settle and see what actually happened. Our cursory understanding is that they were betting on risky MBS products, something we called out Silvergate for doing: www.nanalyze.com/2021/06/silvergate-capital-cryptocurrency-bank/
What risk management?, and Where was the San Francisco Fed in all of this? The stress tests? It appears as though SBV had all there eggs in one low interest basket. Yikes!
I heard a rumor that BAC was going to step up buy them. Just more speculation, but I do think one of the major institutions will have to step in and buy them or this will get ugly fast!
Thanks for your insight Joe.
Oh, and by the way, according to “Bloomberg”rocket lab has about 7.9 Cash exposure in SBV.
Very interesting company, thanks for the nanalyze
You betcha...
Please also note that we've written probably four research pieces on Planet. Just search our website for them - www.nanalyze.com
There are rumors that Starshield (EO for SpaceX) might be getting into the industry. Maxar acquisition was announced a week after people discovered this. Do you have any thoughts or is the lack of data available/ speculation something that limits the answer?
“While Starlink is designed for consumer and commercial use, Starshield is designed for government use, with an initial focus on three areas: Earth observation, communications and hosted payloads,” the company said on its website.”
Great comment here, thank you for raising this! Looks like our assumption about SpaceX not getting into earth observation was flat wrong. That said, looks like this will target government which means BlackSky ought to be extremely concerned. For Planet, it's also concerning with Defense & Intelligence (D&I) and Civil Government making up 65% of total revenues last quarter. Note that government typically likes to utilize multiple vendors to reduce risk so room for more than one player. Thank you for adding this key tidbit of info.
What about sidus space
Incoming: www.nanalyze.com/2022/05/sidus-space-stock-geospatial-intelligence/
Rocket Lab is #1 for me. No reason to believe otherwise.
Would probably need to reevaluate that if SpaceX goes public. Rocket Lab is in the process of playing catch up, but there are still things to like about the company.
@@Nanalyze if that happens then yes they'll take a back seat NO doubt. But Rocket Lab is second only to SpaceX in US launches and only going to get better over time. They'll always be the little brother to SpaceX but again SpaceX is only going to be in the big rocket space while Rocket Lab will cover small and medium sized launches. And I don't see Firefly or Relativity Space being a competitors just yet as RKLB is ahead of the game right now I'm that category. That's just my take on that.
From an investor's perspective, SpaceX only comes into play if they become publicly traded, though their competitive pressures still need to be considered for Rocket Lab investors. Just remember that as Rocket Lab gets better over time, so does SpaceX. There's always room for more than one launch provider as you said and Rocket Lab and SpaceX are the leaders to consider.
@@Nanalyze Rocket lab and Space X have very different goals. Rocket Lab's market goal is to be a highly competitive and complete space services stack with services primarily for commercial gain. SpaceX's goals (as far as I can tell) are mainly to earn sufficient funding from StarLink to populate Mars.
There market cap is low enough I do not see why Star Link or someone else would just acquire them outright? Especially "if" the macro conditions continue to worsen. Could be a prime candidate for an arbitrage play.
We've talked about before why it doesn't seem likely Starlink will mess around with geospatial imaging which is a commodity. PL has a simple valuation ratio of six. If you think there's some arbitrage opportunity because it's so "cheap," on what basis exactly are you making that statement? Maxar was acquired at an SVR of 1 (now 3 following the announcement).
Commenter mentioned SpaceX is getting into geospatial intelligence for government with Starshield. Build vs buy might have gone with build. The old first principles thinking strikes again.
Keep on going!
Roger, roger.
Great research. Thank you!
Glad you enjoyed!
why arent they making profits yet?
it would be nice if you could give additional information regarding their cashflow
Hiya. For growth companies we look at revenue growth as a proxy for market share captured. In a bear market where access to capital dries up, we look at gross margin and runway for survivability metrics. Agree that we'd like to see more language from management on when profitability is expected.
@@Nanalyze thanks for the reply and happy new year!
Happy New Years to you as well!
With the year pl has had and new contracts ie over Ukrainian war I am surprised pl didn’t make more
Maybe that whole PBC thing means they're giving away services for free. Annoying if that's the case. We're not looking to invest in charities of which there are over one million in the USA.
@Joe P. I have seen before where they think giving a free initial trial service will lead to a big contract but some big companies take advantage for instance look at arrival produced the evs for royal mail but nothing on their calls or royal mails because royal mail are using trial services even with drone delivery in Scotland isles
Free trials shouldn't be something that affects their metrics. Usually they'll make sure these lead to sales historically before offering them up.
@Nanalyze but now companies are jumping from trial to trial unless a particular programme is needed
@@SavvyMoneyShow You're right in that getting signatures is becoming a lot more challenging.
This guy is no fool
We beg to differ
Joe, good video! The coupon 30NANALYZEXMAS is invalid, and the special offer should be active until tonight 11:59 pm. This is my gift for 2023, and please advise!
The UA-cam coupon was good until the end of the year (25% off), but just for you we'll open up the 30% off coupon until tonight at midnight (the coupon you tried to use)! Just reenabled the coupon now and it should work. As they say, please try again. Thank you so much for the financial support!
@@joepiv
Thank you, Joe! Guys, I am taking advantage of this deal before the expiration of tonight, please do the same!