People also just want to invest in Starlink because it’s different. 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. If you are one of those investors, you may be wondering how you can buy Starlink stock. You can’t invest directly in Starlink just yet, but you may be able to invest indirectly in other ways.
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. 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. As mentioned, Starlink is not a public company, so you can’t buy its stock directly. You can, however, invest in some of its competitors and gain exposure to the industry that way while you wait for Starlink to go public.
Investingintheweb.com does not provide any offer or solicitation to buy or sell any investment products, nor does it constitute an offer to provide investment advisory services. This website is free to use but we may receive commission from some of the how to buy hnt crypto merchants mentioned. Starlink is a division of SpaceX that is developing satellite internet technology. The basic idea is the ability to provide high-speed internet access around the world using satellites.
Historically, speed and capacity represent the two most significant drawbacks to satellite internet. Most satellite internet service providers only support speeds between 25 and 300 megabits per second (mbps). By contrast, landline fiber internet is capable of speeds up to 5 gigabits per second (gbps).
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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. Starlink provides essential services to remote regions and is considered very profitable. Hence, it is possible that Starlink stock would be a buy for many.
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Landline internet uses telephone lines, coaxial cables or dedicated fiber-optic cables to send and receive data from a modem or router. This device then serves as an access point, allowing everything from computers to smart home appliances to connect to the internet. Mobile internet, meanwhile, leverages nearby cell phone towers to beam data directly to and from connected devices. The main reason for this interest is Musk’s reputation in the investment space. Despite recent pitfalls at X, previously known as Twitter, the man has been involved in multiple highly successful and high-profile tech companies. Starlink itself is an offshoot of one of his other companies, SpaceX.
They’re also looking to land lucrative contracts within the private and government sectors to generate even more cash flow. But that’s not all.Starlink has also been hard at work getting regulatory approval to offer broadband services on the move. Imagine having high speed internet access while you’re cruising down the road. They’ve got the green light from regulators, taking it one step closer to reality.
Starlink is still a private company and not yet publicly traded, so we can’t yet value it based on its market cap on a stock exchange. Currently, the best information we have is based on projections and estimates. We do know that SpaceX has secured some funding specific to broadband access, such as $885 million in broadband subsidies from how to buy sell and trade cryptocurrencies the Federal Communications Commission.
Who is Starlink’s competition?
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. However, as with all of Elon Musk’s companies (except Tesla), Starlink is not publicly traded for now. That may not be a bad thing, though, because its service has been unreliable for many of those who have tried it.
- The main reason for this interest is Musk’s reputation in the investment space.
- If you are one of those investors, you may be wondering how you can buy Starlink stock.
- Most IPOs allocate only a small number of shares for retail investors.
How to Invest in Starlink Stock as a Retail Investor
Our goal at FinMasters is to make every aspect of your financial life easier. We offer expert-driven advice and resources to help you earn, save and grow your money. Starlink operates on a fairly straightforward business model. Customers purchase hardware from Starlink and pay a monthly subscription fee. Starlink connections become faster, more reliable, and accessible to more users as more satellites are placed.
How to buy Starlink stock as an accredited investor
When it does go public, you’ll need a brokerage account to buy shares. 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).
Invest After the IPO
Get a daily email with the top market-moving news in bullet point format, for free. Today’s stock market has not been friendly to IPOs, so there’s no reason to rush it. When Musk decides to list its shares, I would expect Starlink’s IPO to command a valuation north of $100 billion. Yes, SpaceX currently owns and operates Starlink, but Starlink is expected to become its own company in the near future. If we assume the average customer pays Starlink $100 per month, its 2 million customers are currently generating $200 million per month in revenue, or $2.4 billion per year. That said, I’m not sure which of these companies (if any) are supplying parts for Starlink, specifically.
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. Musk had, however, expressed his intention best cryptocurrency exchanges in the uk to take Starlink public once revenue growth and cash flow became more stable. Considering SpaceX is worth approximately $150 billion and considering it’s significantly ahead of its competitors in many areas, we can’t help but wonder about 2024 as a potential date. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments.
You will have to answer questions to confirm that you comply with the rules on IPO investment. Many of Starlink’s startup needs, including the design, construction, launch, and placement of the satellites, were supplied by parent company SpaceX. We do not know how these costs are accounted for or what amortization schedule exists between the two companies. We can assume that the venture capital backers behind SpaceX are also exposed to Starlink and would receive Starlink shares in any IPO. We do not know how any share distribution would be organized, how many shares would be retained by SpaceX, how many would go to SpaceX investors, and how many would be sold in the IPO. Even though you can’t invest directly in SpaceX or Starlink quite yet, you can invest in the one Elon Musk company that is currently public.