SpaceX’s value was $100 billion in October 2021 after a secondary share sale, and it had raised $1.16 billion in equity financing in April. Reliable information about SpaceX and Starlink can be found on the official SpaceX website, which provides updates on launches, company news, and technical specifications. Investor relations sections of reputable financial news outlets and business publications often report on SpaceX’s activities and funding rounds. Melissa Pistilli has been reporting on the markets and educating investors since 2006.
ETF options
- The decision to proceed with an IPO will likely depend on factors such as market conditions, Starlink’s financial performance, and the strategic goals of SpaceX.
- However, Musk has revealed that SpaceX plans to launch a Starlink IPO in the future.
- The secretive allure surrounding the Starlink stock symbol begins with its status as a non-publicly traded entity.
- These inefficiencies provide Starlink with opportunities to gain market share and deliver superior margins.
However, there are still ways for investors to gain indirect exposure via stocks in similar industries. There have been discussions and speculation about a potential Starlink IPO in the future. Elon Musk has hinted at the possibility of spinning off Starlink as a separate publicly traded company once its revenue becomes more predictable and stable.
Sign up to get daily digests on the stocks that matter to you.
Though rumors have swirled for years, Elon Musk himself continues to state that he wants the company to grow and mature before it would go public. Plus, he’s a busy guy, if you haven’t noticed, running SpaceX and X and Tesla and Starlink. At the moment, it’s not a certainty that Starlink will be sustainable from forex.com fx broker review a financial standpoint.
If SpaceX does eventually decide to go public, it would likely be one of the most highly anticipated IPOs in history. Investors would have the opportunity to purchase shares of SpaceX, which would indirectly provide exposure to Starlink’s performance. While a stock split is only cosmetic in nature, it is often utilized by public companies to make the share price more accessible to the average retail investor. In November 2022, Reuters reported that investors during the summer 2022 rounds paid $70 per share.
Starlink should be able to provide continuous global coverage by September, Shotwell said Tuesday. “Going public sooner than that would be very painful,” Musk said in a tweet late Wednesday. EBC Financial Group (UK) Ltd has become aware that our name has been linked to an online Crypto offering by a company. Statistics or past performance is not a guarantee of the future performance of the particular product you are considering.
Those launch services are obviously costlier for OneWeb than what SpaceX would pay. Additionally, SpaceX often onboards its own satellites into contracted launches (a concept called rideshare), thus allowing the firm to ramp up its network substantially faster. In essence, Starlink’s competitors also fund portions of its business by contracting with SpaceX. However, there is some hope that Tesla and maybe even retail investors will be able to receive preferential access to Starlink’s stock upon IPO. As the company continues to expand its global reach and redefine telecommunications, it’s clear that Starlink is not just connecting the world—it’s shaping the future. Musk has said that he wants the company’s revenue growth and cash flow to be smooth and predictable before it goes public.
According to Musk, going public before reaching this stage would be “very painful” for the company. Starlink, a company that aims to bring affordable internet to the whole world through specialized satellite equipment, is not currently available on any stock exchange. Starlink is a division of SpaceX, which is also a privately owned entity. However, realizing this potential will require Starlink to overcome the challenges and risks it faces. The company must continue to innovate, improve its technology, and expand its network to meet the growing demand for internet connectivity.
FAQ 3: What Factors Influence Starlink’s Value within SpaceX?
Known for its focus on disruptive technologies, ARK Ventures invests in both public and private companies, including SpaceX. Starlink is a subsidiary of SpaceX, a privately held entity controlled by Elon Musk. Musk’s goal for Starlink is to reach a point where its revenue growth and cash flow become smooth and predictable.
Conclusion: Investing in the Future of Connectivity
Starlink’s rapid growth has been fueled by $7.5 billion in consumer internet services and $3 billion in military contracts. Its technology has not only redefined global connectivity but also secured dominance in the U.S. government’s LEO satellite program. The program’s funding ceiling recently increased from $900 million to $13 billion, cementing Starlink’s role as a critical partner in military communications. Notably, however, Jeff Bezos’ Blue Origin is ratcheting up competition with SpaceX along with sister company Kuiper, that plans to rival SpaceX’s Starlink network.
There are now pre-IPO investing platforms that may allow you to trade Starlink or SpaceX shares before they go public. Starlink estimated its addressable market was $6 billion at launch. What this means is Starlink could bring in as much as $6 billion in its first year if it can turn every potential sales lead into a customer. However, Gwynne Shotwell, president and CEO of SpaceX said in a 2021 interview that Starlink’s total addressable market could be as high as $1 trillion. While it does appear likely that there will be a Starlink IPO at some point in the future, the exact timeline is not yet known. In 2021, Elon Musk stated that Starlink plans to conduct an IPO once it reaches a point where it can “predict cash flow reasonably well”.
How to Invest in Databricks
- One reason for this interest is Musk’s reputation in the investment space, as he has been involved in multiple highly successful and high-profile tech companies.
- Because Starlink is part of SpaceX, those interested in investing in the project must invest in SpaceX as a whole.
- However, Musk has called those reports false, reiterating his desire for the business to continue maturing before it goes public.
- Whenever possible we test each product and include our honest, firsthand experience using it.
Since Starlink isn’t a publicly traded company, you can’t buy shares of the satellite internet service provider in your brokerage account. And because it’s a unit of SpaceX, investors can’t buy pre-IPO shares of Starlink on secondary platforms that trade shares of start-ups. Starlink is a satellite internet constellation operated by SpaceX, providing satellite Internet access coverage to over 56 countries. As of May 2023, Starlink consists of over 4,000 mass-produced small satellites in low Earth orbit (LEO), which communicate with designated ground transceivers.
It is a division or subsidiary of SpaceX, the privately held aerospace manufacturer and space transportation services company founded by Elon Musk. The value and performance of Starlink are intrinsically linked to SpaceX. Private equity platforms like Forge Global, EquityZen, and Zanbato occasionally facilitate transactions in SpaceX shares. While these platforms provide direct access to private equity, they cater primarily to accredited investors and often charge significant brokerage fees (2–10%) with limited liquidity. It’s currently part of SpaceX, the rocket company founded by Elon Musk, and provides satellite internet services to customers worldwide. There have been reports that SpaceX will spin off Starlink and complete an initial public offering (IPO) within the next year.
There are many reasons people may want to invest in Starlink, but it being one of CEO Elon Musk’s numerous companies is a likely factor. Although Musk can be a polarizing figure, he inevitably draws a lot of attention with any of his business endeavors. According to Space.com, there are 6,426 Starlink satellites in orbit as of September 2024. In today’s increasingly digital world, internet connectivity is becoming less of a luxury and more of a necessity.
Stocks
At today’s valuation, this investment is likely worth around $2.9 billion. While this is a sizable stake, Alphabet is a $2 trillion company, so its $24.5 billion stake in SpaceX represents just 1.2% of its total business. So if you don’t like the other 98.8% of the business, I wouldn’t recommend buying shares for Starlink exposure alone. The fund invests in what they believe are the most innovative companies in the world. Along with SpaceX, its top 10 holdings include Anthropic, Epic Games, and OpenAI. While there’s no way to invest directly in Starlink or SpaceX right now, there are a few options for gaining indirect exposure to it.
Service for a business on a fixed site costs $140 per month, and roaming services have higher starting price points. These satellites can provide a fast internet connection to people anywhere in the world as long as they purchase a Starlink receiver. Starlink was officially formed in 2015 as an offshoot of SpaceX, a company that was founded by Elon Musk in 2002 that is officially known as Space Exploration Technologies Corporation. Starlink emerged as an alternative to cable-based internet services, with Musk and business partner Greg Wyler exploring the possibility of satellite connectivity as a more durable alternative. Starlink faces several risks and challenges that could potentially impact its value.