Planet Labs Launches Google's AI Satellite as Stock Tumbles 66% From Peak

Planet Labs Launches Project Suncatcher AI Satellite

Planet Labs successfully launched Project Suncatcher, an experimental AI computing node developed alongside Alphabet, aboard a SpaceX Falcon 9 rocket on October 1 as part of the Transporter-18 rideshare mission1

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. The satellite carries four of Google's Tensor Processing Units designed to test whether AI computing can operate reliably in the harsh conditions of low Earth orbit1

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. The launch included 20 satellites total: 18 SuperDove Earth-observation satellites, one Tanager-2 hyperspectral satellite for tracking greenhouse gas emissions, and the Project Suncatcher prototype2

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Google is testing how its TPUs handle radiation, heat dissipation, and other conditions absent in terrestrial data centers1

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. If AI inference processing in orbit using solar power proves viable, it could eliminate the need to transmit raw data to Earth for processing, creating an entirely new class of space-based AI computing infrastructure2

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. Google has proposed eventually connecting large numbers of solar-powered satellites to create orbital computing infrastructure, potentially tapping abundant solar energy while avoiding land, power, and permitting constraints facing terrestrial data centers1

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Record Revenue Growth Amid Stock Collapse

Despite the technological milestone, Planet Labs stock has fallen roughly 66% from its May peak of $51.76, trading around $17.50 by early October1

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. The dramatic reversal stands in sharp contrast to the company's underlying business performance. Planet Labs reported record fiscal second-quarter revenue of $116.1 million, up 58% year over year1

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. CEO Will Marshall highlighted this marked the fourth consecutive quarter of meeting or exceeding the Rule of 40, a benchmark combining revenue growth and profit margin that serves as a strong indicator of business health for subscription software companies2

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The company's backlog reached $814.9 million, with roughly half expected to be recognized over the following 12 months1

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. Remaining performance obligations stood at approximately $753 million1

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. Planet Labs ended the quarter with approximately $865 million in cash and short-term investments, while adjusted EBITDA reached $13.9 million1

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Jim Cramer Calls Bottom on Planet Labs Stock

The disconnect between stock performance and business fundamentals caught Jim Cramer's attention. During the October 2 "Mad Money" Lightning Round, Cramer called Planet Labs a "terrific" company and urged investors to buy the stock, stating he believes it is "done going down"1

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. His comments came after Planet Labs stock jumped 8.4% following the successful satellite launch1

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. Cramer also mentioned meeting CEO Will Marshall through Salesforce's Marc Benioff, suggesting Planet Labs is increasingly moving in serious technology and climate circles2

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Space Infrastructure Opportunity Beyond Satellite Imaging

For Planet Labs, which already operates close to 200 satellites and captures terabytes of visual data daily, the significance extends beyond one experimental AI satellite2

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. If orbital AI becomes commercially viable, the company would have a natural competitive advantage in building and operating such systems, representing its most credible path to a new revenue stream that doesn't depend entirely on subscription imaging contracts2

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. The backlog includes demand from governments and commercial customers for Earth imagery, satellite services, and data products1

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. Planet Labs has expanded its role in defense and intelligence, where persistent satellite imagery provides real-time information1

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. Contract wins include a renewed agreement with a hyperscaler AI developer for global monitoring of data center and semiconductor manufacturing facility construction, demonstrating that the AI buildout is visible from space2

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. Analysts polled by S&P Global Market Intelligence don't anticipate Planet Labs reaching profitability before 2029, though Project Suncatcher could accelerate that timeline if successful2

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