How did Elon Musk’s Starlink become so dominant in the market? : NPR
It invested a second time in December 2021, at a valuation of $100 billion. While Musk mentioned back in 2020 that Starlink would spin off from SpaceX and become publicly traded once it was consistently growing revenue, he has not made any indication that it will happen soon. Today, Starlink’s network is made up of nearly 8,000 satellites that deliver high-speed, broadband internet to more than 6 million people (and growing) all over the world. On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. It plans to do this by putting thousands of small telecoms satellites into low-Earth orbit that can beam high-speed, low-latency internet to the ground. Retail investors can wait for the IPO, or explore some of the ideas discussed in this article.
The Baron Partners Fund has been an early investor in SpaceX and offers a more traditional mutual fund structure for those seeking indirect exposure. In December 2024, SpaceX completed a secondary market transaction — which gave current shareholders the option to sell some or all of their shares — that valued the company at $350 billion. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.
With that kind of star power connected to the company, you might be wondering how to buy Starlink stock. Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Partners are not able to review or request changes to our content except for compliance reasons. Financial products are highly regulated so we work closely with partners to make sure the information we have on our site is accurate and includes any required legal language and disclaimers.
Starlink Internet Valuation as of Last Funding Round
One reason for this market wizards series interest is Musk’s reputation in the investment space, as he has been involved in multiple highly successful and high-profile tech companies. Starlink itself is an offshoot of one of his other companies, SpaceX. For once, we do know how much institutional investors are paying to acquire a stake in SpaceX and Starlink. SpaceX counts powerhouses like Andreessen Horowitz, Sequoia Capital, or Founders Fund as backers. SpaceX previously estimated that it would cost around $10 billion to launch the 12,000 satellites it initially wanted to deploy.
What is Starlink Internet stock price?
Here’s a look at what you need to know about Starlink, how to invest in its stock if it completes an IPO, and some alternatives to investing in the space company. SpaceX’s current valuation on the secondary market is $350 billion. If Starlink is still worth half of SpaceX’s value, that would mean its value is around $175 billion on its own. Beyond Starlink and Project Kuiper, OneWeb (a private company) is the only other real player in the LEO (low-earth orbit) satellite industry. Again, this stake in SpaceX and Starlink represents just 0.8% of Bank of America’s total market capitalization, so I wouldn’t recommend buying shares solely for its investment in Starlink.
The Potential Impact of Starlink on SpaceX’s Valuation
Now, Starlink does possess one significant competitive advantage, which is that it can take advantage of the comparatively lower launch costs made possible by its parent company SpaceX. “Starlink is the right kind of business that we can go ahead and take public,” she told a group of investors back in February 2020. For example, if you have $1,000 available to start investing, you might want to begin by allocating that money equally across at least 10 stocks and then grow from there. The Motley Fool’s investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to hold for at least five years.
If you’re interested in private tech investing, the ARK Venture Fund is one of the best ways to access the market. Starlink, which is currently operated by space exploration firm SpaceX, allows people to connect to the internet via a satellite dish that is placed on or near their property. The internet is beamed down to the dish via Starlink satellites that have been put into orbit by SpaceX. The anticipation surrounding the “Starlink stock symbol” exemplifies a common narrative in tech investments—waiting for innovation to meet market availability. FinanceBuzz does not include all financial or credit offers that might be available to consumers nor do we include all companies or all available products. Information, including rates and fees, is accurate as of the publishing date and has not been provided or endorsed by the advertiser.
However, secondary market transactions are typically less transparent than public stock trading. Information about these transactions is often limited and may not be readily accessible to the general public. Furthermore, the prices in these transactions might be influenced by factors specific to the individual buyers and sellers involved. These valuations are often reported in financial news outlets and analyzed by industry experts. While not an official stock price, they serve as the best available proxy for understanding the potential value of SpaceX and its subsidiaries like Starlink.
- After all, there is a large amount of historic data on a variety of different satellite communication operators, such as Iridium Communication, which act as comparables when pricing the stock.
- During market hours fractional share orders are transmitted immediately in the order received.
- You can’t invest in Starlink just yet, but there are a few reasons the broadband provider might be an investment to consider in the future.
- The government had complained that Starlink was making limited low orbit space overcrowded, and released a whitepaper calling for the destruction of Starlink satellites.
- Therefore, Musk and SpaceX initially anticipated taking Starlink public sometime in 2022 – a feat that obviously did not materialize.
- If successful, Starlink could revolutionize internet connectivity and have a profound impact on various industries, including education, healthcare, and commerce.
Investing in SpaceX Once it Goes Public (IPO)
Several venture capital firms and institutional investors have invested in SpaceX during its fundraising rounds. Investing in these firms could indirectly provide exposure to SpaceX’s performance and, by extension, Starlink’s potential. Yes, Starlink Internet and almost all privately held companies issue stock so founders, employees, and investors can participate in equity ownership. However, because Starlink Internet is privately held, it is more challenging to acquire shares than if the company was publicly traded. Another source of information regarding SpaceX’s valuation comes from secondary market transactions. These are private sales of SpaceX shares between existing shareholders and potential buyers.
Starlink has said it plans to launch 12,000 satellites in total at a cost of approximately $10 billion. “But then we have regulatory work to go into every country and get approved to provide telecoms services.” SpaceX President Gwynne Shotwell said last year that Starlink could be spun off from SpaceX for an initial public offering.
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While discussing a planned testing milestone for SpaceX’s rockets, Shotwell claimed that 2023 was the year Starlink would make money. To explain why, we need to first explain the different types of internet. The two most common are land-based connections and cellular or mobile connections. More recently, the company has been making significant inroads into African countries, including Zimbabwe, Niger, Liberia, and Musk’s native country of South Africa. This is also the range where a lot of Starlink’s competitors have historically traded at.
Accredited investors can invest in SpaceX directly through Hiive, an investment platform for private, pre-IPO companies. He knows the road ahead, and Starlink is tracking progress in terms of satellite launches and cost improvements. Starlink is a private company, so there is no Starlink stock price. Investors eyeing potential market entry must stay informed about key developments and indicators suggesting SpaceX’s readiness to take Starlink public.
- In 2022, reports cited Elon Musk as saying that Starlink would not go public until 2025 or later.
- If Starlink achieves its ambitious goals, it could significantly boost SpaceX’s revenue and profitability, leading to a substantial increase in the company’s valuation.
- You’ve probably heard about Starlink, a division of aerospace manufacturer SpaceX, and how it’s working to change that.
- With that in mind, those considering a Starlink investment must ensure they understand the company and its technology as soon as possible.
- As with any investment, it’s important to do your research and speak to an accredited brokerage or investment advisor before you commit any capital.
Stocks
If you’re looking for information on how much Starlink is worth, it’s a bit tricky to pinpoint because Starlink is a private company. You can look at the $6.6 billion projected revenue in 2024 as an indicator that the company is doing well, but there’s no value based on a stock exchange market cap. Aerospace manufacturer SpaceX has grown significantly since its founding in 2002. Since 2014, a division of SpaceX has been working on a so-called satellite “constellation” that will provide internet access nearly anywhere in the world. If you’re an investor interested in benefiting from the potential growth of Starlink, you may be wondering how you can buy Starlink stock. 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.