However, many parts of the country and of the world remain unconnected or under-connected. Now, a new business venture called Starlink — a division of aerospace manufacturer SpaceX — looks to change that. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any financial institution.
However, the Federal Communications Commission recently awarded SpaceX a nearly $900 million subsidy for Starlink to support rural broadband access, indicating a truly substantive business. Starlink is a promising company with seemingly limitless potential. It promises to expand internet services to the far reaches of the globe without requiring Wi-Fi devices, which can bring millions of people online. Starlink has also launched a premium service, which it simply calls Starlink Premium. The company claims the service will double Starlink antenna capability for higher internet speeds and throughput. Those who sign up are required to make a $500 deposit and pay $2,500 for the antenna and router.
Pros and cons of investing in aerospace stocks
SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. But as you can see up above, Musk put a caveat on his prediction of a Starlink IPO. To wit, Starlink will not IPO until its revenue growth has become both “smooth & predictable.”
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Another problem is that some users reported “non-existent” customer service — something that will need to be addressed going forward. 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.
FinanceBuzz is not a financial institution and does not provide credit cards or any other financial products. Hopefully, Starlink will go public sometime in the next few years, but nothing is for certain https://www.cryptominer.services/ yet. For now, you may consider investing in a related company or exploring pre-IPO offerings. However, as with all of Elon Musk’s companies (except Tesla), Starlink is not publicly traded for now.
- When a16z invested in X (formerly Twitter) (TWTR), it sold some of its shares to Cathie Wood’s Ark Venture Fund.
- And that means that investors will be betting on the target business as well as Elon Musk.
- It promises to expand internet services to the far reaches of the globe without requiring Wi-Fi devices, which can bring millions of people online.
- Shift4 Payments Inc., which offers payment acceptance services, recently entered into a five-year partnership with SpaceX’s Starlink, CNBC reported.
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. Notable investors include Alphabet Inc. and Fidelity Investments. As of January 2022, It has launched 2,091 satellites including 1,915 currently in orbit. Unfortunately, SpaceX says 40 of the 49 satellites it launched at the end of 2021 were wiped out by a geomagnetic storm. SpaceX’s Starlink satellites form this constellation; the company uses satellites in low Earth orbit to enable online gaming, video calls, streaming, and other aspects of internet connectivity. Aerospace manufacturer SpaceX has grown significantly since its founding in 2002.
What to know about Starlink’s IPO
Google (GOOGL) stock has gradually climbed the price per share ladder each year, although 2021 marks the highest price point Google’s stock has ever traded at. Granted, last time we checked, Starlink was still growing, albeit in fits and starts. As long as growth continues, Musk’s $30 billion dream remains a possibility. As a subsidiary of a private company, Starlink has not made available to the public its financial details.
In a series of tweets, Elon Musk repeatedly expressed his interest in spinning off his SpaceX subsidiary as a publicly-traded entity. Starlink is not a publicly traded company, so its stock is not available for direct purchase anywhere. There have been news and rumors about a Starlink stock IPO in 2024.
How Does Starlink Make Money?
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.
However, different investors and analysts have different opinions and predictions, and Elon Musk himself has not been sharing much of his plans for the planned IPO. FinanceBuzz is an informational website that provides tips, advice, and recommendations to help you make financial decisions. We strive to provide up-to-date information, but make no warranties regarding the accuracy of our information.
Bank of America (BAC) invested $250 million at a valuation of ~$30 billion in November 2018. At today’s valuation, this investment is likely worth around $1.15 billion. 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. Starlink is expected to become profitable this year and has access to plenty of funding (more on that below).
However, there have been news and rumors about a potential initial public offering (IPO) in 2024. In November 2023, in response to a post by Bloomberg, Elon Musk denied any plans for a Starlink IPO coming so quickly. Many of the offers appearing https://www.crypto-trading.info/ on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).
The Extra newsletter by FinanceBuzz helps you build your net worth. Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved or otherwise endorsed by these entities. Although nothing is for certain at this point, some predict Starlink will be more valuable than SpaceX itself. This method lets you build wealth without needing a ton of money or forking over your entire paycheck. This article was subjected to a comprehensive fact-checking process.
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 now pre-IPO investing platforms that may allow you to trade Starlink or SpaceX shares before they go public.