Not All Who Wander Are Lost, But Planet Labs Just Found Their Way To Profit!

A Light Where There Was Shadow

Hoom! Well well what have we here? News from the mortal world that even this old wizard finds rather… uplifting! It appears Planet Labs a company that fancies itself with eyes in the sky – rather like the Eagles of the Manwë wouldn't you say? – has reported its first ever quarter of positive free cash flow. Yes you heard right! A glimmer of light in the often murky depths of the financial markets. Eight million golden coins if you will glinting in their coffers!

Exceeding Even My Expectations (and I've Seen a Few Things)

The numbers dear friends are quite Ent chanting! Revenue? A record $66.3 million exceeding even the most optimistic forecasts by those FactSet wizards. They predicted a loss those gloomy Gandalf's but Planet Labs has proven them wrong! It reminds me of the Battle of the Pelennor Fields – when all seemed lost hope emerged from the most unlikely of places. Perhaps their CEO Will Marshall has a touch of the Elven blood in him for such foresight is rare among Men.

Shares Ascending Higher Than an Eagle's Flight!

And what of the stock price you ask? Soaring! Higher than Gwaihir carrying me from Orthanc! Up more than 50% on Thursday alone and 82% this quarter. It seems the market has finally recognized the value of having eyes everywhere – a concept Sauron understood all too well though for rather different purposes. Let us hope Planet Labs uses its power for good unlike that fiery fiend.

Pelican Satellites: The New Palantír?

They've even secured a hefty $230 million contract for their next generation Pelican satellites. 'A significant step,' says Marshall. Indeed! One wonders if these satellites might be the modern equivalent of the Palantír – seeing across vast distances. Though let us hope they are not as easily corrupted as Saruman's! After all 'It is not the strength of the body but the strength of the spirit' that matters.

Forecasting the Future (Without a Crystal Ball)

Looking ahead Planet Labs expects sales to remain strong. Seems they are forging their own path and not relying on the whims of the market winds. They are being very 'Deliberate and Grim' and their strategic direction and great execution will carry them further. As I always say 'Do not be too eager to deal out death in judgement. Even the wise cannot see all ends'.

A Word of Caution From This Old Wizard

But a word of caution dear investors. While the future looks bright remember Frodo's journey: 'Even the smallest person can change the course of the future.' The markets are fickle and fortunes can change quicker than a Balrog can fall. So invest wisely keep your wits about you and remember: 'All we have to decide is what to do with the time that is given us.' Now if you'll excuse me I have a long walk ahead… and a feeling I need to keep an eye on Mordor. One can never be too careful.