Why Planet Labs Stock Went to the Moon Today

Rocket Lab (NASDAQ: RKLB) is buying Iridium Communications (NASDAQ: IRDM) for $8 billion, arsenic the 2 abstraction companies announced -- and it's getting investors successful different abstraction stocks beauteous excited this morning.

Planet Labs (NYSE: PL) banal for illustration isn't progressive successful the RKLB-IRDM woody astatine all, but arsenic of 10:30 a.m. ET it's already up 10.5% -- adjacent much than Rocket Lab's 8.7% bump, albeit not arsenic overmuch arsenic Iridium's 21.6% gain!

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Details, delight

Rocket Lab is paying $8 cardinal successful currency and banal to get the archetypal outer telephone company, Iridium, and grow its ain concern beyond chiefly abstraction motorboat and outer construction, into providing Internet of Things (IoT), aviation, maritime, and Position, Navigation, and Timing (PNT) services.

Planet Labs doesn't truly bash immoderate of these things; its absorption is connected Earth reflection satellites (spy satellites).

What the Rocket Lab-Iridium tie-up means for Planet Labs

For forward-thinking investors, though, this could beryllium a bully thing. As Rocket Lab expands into caller abstraction markets, 1 that it mightiness privation to participate is Earth reflection -- and that could marque Planet banal a aboriginal merger target.

Alternatively, idiosyncratic else in the abstraction manufacture mightiness determine to scoop up Planet Labs -- whose banal is down much than 40% successful the aftermath of the SpaceX (NASDAQ: SPCX) IPO -- earlier Rocket Lab tin get to it.

Speaking of which, Rocket Lab's acquisition of Iridium demonstrates that not all the abstraction wealth volition spell to SpaceX from present on. Consolidation is inactive happening elsewhere, and investors are inactive funny successful uncovering and buying "the adjacent SpaceX."

Maybe, conscionable maybe, that adjacent SpaceX volition beryllium named Planet Labs.

Should you bargain banal successful Planet Labs PBC close now?

Before you bargain banal in Planet Labs PBC, see this:

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