We strive to provide up-to-date information, but make no warranties regarding the accuracy of our information. Ultimately, you are responsible for your financial decisions. FinanceBuzz does not provide credit cards or any other financial products. Although nothing is for certain at this point, some predict Starlink will be more valuable than SpaceX itself.
That may not be a bad thing, though, because its service has been unreliable for many of those who have tried it. In addition, the company doesn’t appear to be profitable yet — though we will need to see its earnings reports to know for sure. There are also concerns about light pollution and even Starlink’s satellites potentially interfering with the work of astronomers. Another problem is that some users reported “non-existent” customer service — something that will need to be addressed going forward. That being said, Starlink also needs a license to offer internet services before new customers can sign up. First, satellite internet by its nature is easier to expand than cable and fiber internet infrastructure.
Starlink Financial History
For once, we do know how much institutional investors are paying to acquire a stake in SpaceX and Starlink. First, it would overcomplicate and further dilute the cap table. This would be a nightmare how to use on balance volume from an administrative perspective, especially if existing private investors wanted to load off some of their shares.
There are now pre-IPO investing platforms that may allow you to trade Starlink or SpaceX shares before they go public. At the moment, it’s not for certain that Starlink will be sustainable from a financial standpoint. Musk says the company needs up to $30 billion in annual funding to survive. He said in 2021 that the company was spending $1,000 to produce Starlink terminals, which it sells for $500. Thus, while Starlink has secured some funding, it will need more to survive — and ultimately bring its manufacturing costs down. As of January 2022, It has launched 2,091 satellites including 1,915 currently in orbit.
Starlink valuation
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- If that were still the case, Starlink would be worth at least $100 billion as a standalone company.
- On top of that, shares in a private company can be illiquid, meaning you can’t sell them as easily as public stock.
- Although traditional internet companies provide internet through a series of cables and towers on the ground, Starlink uses satellites hundreds of miles above the earth.
- In addition, the company doesn’t appear to be profitable yet — though we will need to see its earnings reports to know for sure.
- We’ll take a peek at how Starlink is doing so far and whether you might consider investing money in the SpaceX division if it eventually goes public.
Cons of buying Starlink stock
And that means that investors will be betting on the target business as well as Elon Musk. Right now, Musk has the golden touch and only the bravest will bet against him. As an independent source of information, our aim is to assist users of the SpaceX Starlink satellite internet service. We are not connected with either SpaceX or Starlink in any official capacity. Our focus is on providing useful tips and tutorials for those interested in learning about Starlink. Second, investors normally get access to confidential company data such as revenue, profit/loss statements, the number of customers, and so forth.
SpaceX, which likely continues to incur losses, needs to maintain a positive public image, especially considering the potential danger it poses to astronauts or astronomers. Unfortunately, regular folks like you and I do not have the ability to invest in Starlink or SpaceX before it goes public. Given that Musk initially predicted to take Starlink public that year, this likely would’ve been the revenue estimate at which Starlink operates at healthy enough profit margins. Therefore, Musk and SpaceX initially anticipated taking Starlink public sometime in 2022 – a feat that obviously did not materialize. The first indication of a potential Starlink IPO was first provided by SpaceX COO Gwynne Shotwell.
But remember, your investment is how to create or build a video streaming website like netflix largely tied to the primary business of those companies, not just their stake in SpaceX. Information about a Starlink initial public offering (IPO) stock price is also limited, but we do have some clues about SpaceX shares. For instance, SpaceX has raised private equity funding in multiple rounds including $560 per share with a $100 billion valuation and $419.99 per share with a $74 billion valuation. SpaceX is launching dozens of satellites into space every month as it deploys its Starlink satellite internet constellation.
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. It isn’t currently possible to buy Starlink shares on the stock market.
If and when Starlink goes public, investors will need to buy shares of SpaceX, currently valued at around a whopping $137 billion. Some, like the ARK Space Exploration ETF (ARKX), have exposure to SpaceX due to their investments in related sectors. While you’re not directly investing in SpaceX, you’re riding the broader space industry wave. You’re also exposed to the performance of other companies in the fund, who might struggle to bring in returns. One aspect that is unique to Starlink is the loyal following of its CEO Elon Musk.