We recently published a list of 10 VLEO Technology Stocks and Startups to Watch in 2025. In this article, we are going to take a look at where Planet Labs Pbc (NYSE:PL) stands against other VLEO technology stocks and startups to watch in 2025.
Very Low Earth Orbit (VLEO) refers to altitudes below 450 km, much lower than traditional low Earth orbit (LEO), which typically includes altitudes between 500 km and 2,000 km. This emerging sector in the space industry offers numerous advantages, including lower latency for communications, higher-resolution imaging capabilities, and reduced launch costs. However, operating in VLEO also presents challenges such as increased atmospheric drag, requiring innovative propulsion and station-keeping technologies. VLEO technology is gaining traction as companies seek more efficient ways to deliver high-speed broadband, enhance Earth observation capabilities, and support national security initiatives. The increasing demand for global connectivity, precise geospatial intelligence, and real-time satellite-based data services is driving investments in VLEO solutions. Governments, defense agencies, and commercial enterprises alike are exploring VLEO applications for sectors such as telecommunications, agriculture, disaster response, and environmental monitoring.
From an investment perspective, VLEO-related stocks and startups offer exposure to one of the fastest-growing segments of the aerospace industry. Companies involved in VLEO range from established aerospace giants developing cutting-edge satellite technology to emerging startups focused on specialized propulsion, high-resolution imaging, and space-based communication networks. The rise of private-sector space initiatives, alongside increased government contracts, provides a strong growth outlook for businesses operating in this niche – for reference, external research boutiques such as Juniper Research estimated that investments into VLEO will reach $220 billion by 2027, from only $17 billion in 2024, implying an annualized growth rate of 135%.
Investors interested in space technology stocks should consider VLEO companies for several reasons. First, the commercialization of space is accelerating, with increasing private-sector involvement from leading firms. Second, VLEO satellites can provide more cost-effective alternatives to traditional LEO and geostationary orbit systems, creating opportunities for companies offering facilitatory or complementary technology in this space. Finally, the sector benefits from strong long-term tailwinds, including advancements in artificial intelligence, cloud computing, and 5G networks, which require faster and more efficient space-based infrastructure. With this, we will take a look at some of the best VLEO stocks to invest in.
Our Methodology
We shortlisted 10 names, which include both publicly traded companies as well as private companies and startups. We ranked the names by market capitalization or the amount of funding raised as we believe the company’s size correlates with the potential to gain a substantial market share by either facilitating or complementing the rapid growth of the VLEO technology market. For publicly traded companies we also include the number of hedge funds that own it.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A satellite in orbit against a blue sky, displaying the power of the company’s space-based systems.
Planet Labs Pbc (NYSE:PL)
Latest Valuation/Funding Estimate: $1.81 billion market capitalization
Number of Hedge Fund Holders: 8
Planet Labs Pbc (NYSE:PL) is a dominant player in the commercial satellite imaging industry, leveraging VLEO technology to provide high-frequency, high-resolution Earth observation data. With a fleet of over 200 small satellites, known as “Doves”, “Pelicans”, and “SkySats”, the company has built the world’s largest Earth imaging constellation, enabling daily global coverage with a sharper image quality and faster revisit times, making its data hyper-important for industries like agriculture, defense, urban planning, and environmental monitoring. The California-based company ranked fourth on a recent list of 15 Industrial Stocks Skyrocketing So Far In 2025.
One of Planet Labs Pbc (NYSE:PL)’s biggest competitive advantages is its ability to offer near real-time geospatial intelligence at scale. The company’s satellites capture imagery with resolutions ranging from 3 to 50 centimeters, providing governments, businesses, and researchers with unprecedented insights into land use, climate change, disaster response, and geopolitical developments. This high revisit frequency gives Planet Labs Pbc (NYSE:PL) a strong edge in the growing demand for real-time Earth observation data, particularly for industries that require constant monitoring and change detection.
As an investment, Planet Labs Pbc (NYSE:PL) stands out due to its subscription-based revenue model, which provides steady, recurring income from commercial and government clients. The increasing adoption of satellite-based analytics for supply chain management, precision agriculture, and national security makes PL a key player in the expanding geospatial intelligence market. The company’s edge in this space is already confirmed by record-high bookings reported during the recent 3Q 2024 earnings call. Here’s what Management said:
“In summary, we won multiple large contracts with government customers that we believe positions us to reaccelerate growth as those contracts ramp and expand. On the product front, we’ve made improvements to our core daily scan data. We’re capturing a powerful new data set with our first Tanager satellite, which we expect to commercialize in the months ahead, and we plan to launch our next Pelican satellite shortly. Finally, the adoption of AI-enabled solutions amongst both government and commercial customers is growing. We’re focused on leveraging our platform and partners to nurture this adoption, increase customer value, expand the addressable market and ultimately build greater predictability and growth into the business.”
Overall, PL ranks 3rd on our list of the VLEO technology stocks and startups to watch in 2025. While we acknowledge the potential of PL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
