Planet Labs (NYSE: PL) stock fell 10% this week, despite strong growth and new contracts. Revenue grew 33% to $81 million, with a backlog of $734 million. However, market momentum decline and an insider sale caused the drop. The stock is up 487% in the last year, but its high valuation is a concern.

Even with the recent dip, Planet Labs stock is not recommended for purchase. The Motley Fool Stock Advisor did not include it in their list of top 10 stocks to buy. Their picks have historically outperformed the market significantly, with average returns of 937% compared to 195% for the S&P 500.

Consider all factors before investing in Planet Labs stock. Despite gains and new contracts, the high valuation and recent decline make it a risky investment choice. The Motley Fool Stock Advisor does not recommend it as a top stock to buy now.

Read more at Yahoo Finance: Why Planet Labs Stock Fell This Week