Why Planet Labs Stock Went to the Moon Today

Shares of Planet Labs (NYSE: PL), the tiny space company that's built the world's largest constellation of Earth observation satellites, rocketed to the moon Wednesday morning, shooting 14.2% higher (as of 11:55 a.m. ET) after announcing that it has landed a contract with America's National Reconnaissance Office -- the NRO, the nation's spy satellite factory.

The NRO awarded Planet's subsidiary Planet Labs Federal a potential 10-year electro-optical commercial layer (EOCL) contract to supply unclassified medium-resolution and high-resolution commercial satellite imagery to the government.

Initially, the contract will run for a five-year base period, with potential "options" extending the total duration to a full decade. NRO will have access both to new images taken daily and to Planet's archive of "over 2,000 images of every point on the Earth's landmass, dating back to 2009."

Source Fool.com