As of Nov. 10, Starlink had reportedly launched 1,740 Starlink satellites. Recently, the company launched another 48 satellites into orbit, reports SpaceX. Starlink uses SpaceX’s launch services to launch satellites into orbit, which puts the company in a more advantageous position than its competitors. “SpaceX is the only satellite operator with the ability to launch its own satellites as needed.” This allows SpaceX to make cost-effective launches each time updates become available.
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- Here’s a look at what you need to know about Starlink, how to invest in its stock if it completes an IPO next year, and some alternatives to investing in the space company.
- Since SpaceX is a private company, there is little chance of investing in Starlink.
- The company is the only satellite operator with the ability to launch its satellites as needed.
As of late 2022, nearly 3,000 satellites have been launched into orbit, and the service’s testing has commenced. The web of satellites known as Starlink will connect to ground receivers, making it possible to provide internet at competitive prices, especially to underserved global communities. Hopefully, Starlink will go public sometime in the next few years, but nothing is for certain yet. For now, you may consider investing in a related company or exploring pre-IPO offerings.
The satellite internet provider was part of SpaceX, a privately held company controlled by Musk. We have no idea at this stage if this would be in the cards for a Starlink stock IPO. But if there is a viable preferential treatment for “small retail investors,” early customers would seem to make the most sense because you can’t offer IPO shares to everyone. Equitybee provides accredited investors access to pre-IPO startups by funding employee stock options.
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. First, satellite umarkets review internet by its nature is easier to expand than cable and fiber internet infrastructure. People can theoretically use Starlink as long as they have the necessary equipment and a clear view of the sky as its satellites orbit the globe. Starlink has also launched a premium service, which it simply calls Starlink Premium.
Starlink Surpasses 250,000 Users in 25 Countries
Starlink is still a subsidiary of SpaceX, and while it’s expected to spin off and go public in the future, it has not scheduled any plans to IPO. There is no Starlink stock symbol and you can’t buy it in your brokerage account. Starlink builds and launches satellites that deliver high-speed, broadband internet to users around the world. With its low-orbit network, users can stream seamlessly from even the most remote locations. Craig is a former IT professional who left his 19-year career to be a full-time finance writer.
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 leader in providing satellite internet services. The company is rapidly growing its revenue and has reached a cash flow break-even level.
How to buy Starlink stock as an accredited investor
It invested a second time in December 2021, at a valuation of $100 billion. Starlink is expected to become profitable this year and has access to plenty of funding (more on that below). At this point, there’s no need for it to turn to the public markets. In 2019, the first Starlink satellite fleet was launched into orbit.
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) of the business within the next year. 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. However, Musk has called those reports false, reiterating his desire for the business to continue maturing before it goes public. With Starlink’s revenue skyrocketing, investors are increasingly eager to get their hands on shares of Musk’s highly valued satellite internet company.
Ways to Prepare to Invest in a Starlink IPO Spinoff
As of October 2020, Tesla generates $28 billion in annual revenue. If SpaceX could retain 50% or more of Starlink stock, it could raise hundreds of billions to pursue its primary objective. Starlink has the potential to generate billions of dollars of revenue. fbs broker review Once the network of satellites is in place, revenues should outpace maintenance costs, generating significant profits. Twelve thousand satellites are expected to orbit Earth during the first phase, with the potential to increase that number to 42,000.
If you don’t like the other 99.4% of Google’s business, I wouldn’t recommend buying its shares to gain exposure to Starlink. Investors can place bids and negotiate with sellers or accept their asking prices. You can invest in SpaceX directly through Hiive, which is a marketplace for private, pre-IPO companies like Reddit, Stripe and SpaceX. If you’re a retail investor, don’t worry, there are a few indirect ways you can gain access to Starlink’s upside. While Starlink IPO rumors have been circulating, there is no clear indication it will happen soon.
They enable the company to offer preferred IPO share access, generally to affiliates and family members. Accredited investors can invest directly in pre-IPO companies via pre-IPO investing. Since SpaceX is now worth more than $100 billion in the private marketplace, employees ig broker and shareholders may look to sell shares before the IPO. Right now, we are a private company, but Starlink is the right kind of business that we can go ahead and take public. That particular piece is an element of the business that we are likely to spin out and go public.
Assuming the price is not too ridiculous, buying into a Starlink IPO will be a no-brainer.
For Uber, drivers who logged a certain number of miles received shares. For GoPro, anyone on their email list could apply to acquire shares. There are also opportunities to invest in pre-IPO companies via venture capital funds, such as the Fundrise Innovation Fund and the ARK Venture Fund available at SoFi Invest. You cannot buy SpaceX stock or Starlink stock in the open market today — SpaceX is a private company, and Starlink is a business run by SpaceX.
Skylink plans to launch tens of thousands of satellites into low-Earth orbit, providing low latency and high-speed Internet across the globe. At this rate, it won’t take them very long to reach that goal. A SpaceX Falcon 9 rocket carries nearly 60 Starlink satellites to low-Earth orbit every few weeks.
Founders, early employees, and investors often find themselves in a difficult predicament. They own valuable shares of a company that doesn’t trade publicly. You can buy shares of Alphabet through any low-cost online brokers. For long-term buy-and-hold investors, I recommend M1 Finance (review). Along with Fidelity(private), Google announced a $1 billion investment in SpaceX in January 2016. The investment amounted to 10% ownership of the company ($10 billion valuation) at the time.