According to a Vox article, many astronomers have concerns that the plan to put as many as 12,000 or more Starlink satellites into orbit could cause a lot more light pollution, which could interfere with their Earth-bound telescopes. SpaceX says it works to reduce light pollution from those satellites, including experimenting with a dark coating on the surface. When SpaceX first launches a new set of satellites, you can briefly see them with the naked eye. When that happens, they become much less visible, but they could still be visible with the naked eye in certain circumstances, and certainly via telescopes.
While the existing methods for gaining Starlink exposure are not ideal, investors will be pleased to know that SpaceX has announced that a Starlink IPO date will be set in the near future. The Starlink IPO is expected to take place in 2025, which will allow public investors to gain direct exposure to the company. Starlink’s ability to provide internet access in the absence of established infrastructure came to the fore during the early stages of the Russia-Ukraine war in 2022. The Russian military destroyed cell towers and fiber optic cables in Ukraine, and Starlink was then used to restore internet access to the country. Since then, the Chinese government has threatened to remove Starlink satellites from low orbit, citing its military applications as cause for concern. In 2015, Google poured a $1 billion investment into SpaceX, the company behind Starlink.
Our Services
The body of each satellite is flat, and up to 60 of them can fit into one of SpaceX’s Falcon 9 rockets. Once put in orbit, a single large solar array comes out to power the satellite. The central portion includes four powerful antennas for internet transmissions.
While traditional satellite internet uses a few single satellites orbiting more than 22,000 miles above us, these satellites are so far up because they need to be at a point where any dish can access them. Starlink is different, utilizing tons of small satellites in low Earth orbit — or at altitudes of 342 miles. Each of these small satellites talk to each other to blanket a region with internet access. This makes for a internet experience that performs closer to cable internet than you’d find from satellite providers like Hughesnet. These satellites can provide a fast internet connection to people anywhere in the world as long as they purchase a Starlink receiver.
Starlink Stock Price, Symbol: How to Invest in Starlink IPO?
But according to Payload’s Starlink forecast for 2024, the company will generate more than $6.8 billion in revenue this year — up more than 50% from $4.2 billion in 2023. And Starlink is hoping to generate operating profit margins of 60% on its revenue — $4.1 billion. rest api handbook Granted, it remains uncertain precisely how far we are away from this goal. It’s also anyone’s guess whether these numbers fit Elon Musk’s definition of how “reasonably predictable” this future is.
- Again, this stake in SpaceX and Starlink represents just 0.5% of Bank of America’s total market capitalization, so I wouldn’t recommend buying its shares solely for its investment in Starlink.
- The body of each satellite is flat, and up to 60 of them can fit into one of SpaceX’s Falcon 9 rockets.
- When it does go public, you’ll need a brokerage account to buy shares.
- While the existing methods for gaining Starlink exposure are not ideal, investors will be pleased to know that SpaceX has announced that a Starlink IPO date will be set in the near future.
- And Starlink is hoping to generate operating profit margins of 60% on its revenue — $4.1 billion.
Although SpaceX, which reached a valuation of $100 billion in October 2020, and Starlink haven’t acquired their own unique ticker symbol just yet, there might be an indirect way that you can invest in either of these Musk-founded companies. You see, what SpaceX is essentially running here is a razor and blades business model. SpaceX may lose a bit of money on each “razor” it sells (i.e., the terminals), but make up that loss many times over by selling “razor blades” (i.e., internet service) to make the razors useful. 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. Starlink was officially formed in 2015 as an offshoot of SpaceX, a company that was founded by Elon Musk in 2002 that is officially known as Space Exploration Technologies Corporation.
Such speeds, received for just $99 a month, could make Starlink the default choice for internet service across rural America — and even in U.S. cities (raising the possibility that Starlink will end up competing with Comcast and AT&T, whether it intends best penny stocks to buy now 5 for your watch list to or not). That being said, calculating Starlink’s potential revenue contribution to SpaceX isn’t quite as simple as multiplying $99 a month times 12 months a year times 60 million people. After all, $28.5 billion would be in the ballpark with SpaceX’s earlier estimate, even before considering the revenue coming from international markets. Speaking virtually at the LEO Digital Forum last Tuesday, Shotwell reiterated SpaceX’s plans to — at least initially — focus Starlink on providing internet broadband to rural customers. She described the service as “complementary” to terrestrial internet providers such as Comcast (CMCSA -0.48%) and AT&T (T 1.55%), rather than competing with them. Eventually, SpaceX wants this to become a global business, but even just considering the U.S. market, and even if Starlink only “complements” existing options, the opportunities look vast.
Andreessen Horowitz (a16z) is a venture capital firm that has been a primary investor in SpaceX in multiple funding rounds. When a16z invested in X (formerly Twitter) (TWTR), it sold some of its shares to Cathie Wood’s Ark Venture Fund. If you like Google and/or Bank of America and want to invest in their stock anyway, simultaneously getting exposure to Starlink is a nice bonus. If you’re an accredited investor (individuals with an annual income of more than $200,000 or $300,000 for married couples, or a net worth exceeding $1,000,000 excluding your primary residence), check out the first section Types of financial instrument below.
What Shotwell said
The dream of accessing the internet no matter where you live might become a reality sooner than you might think. In 2015, SpaceX, the company owned by technology billionaire Elon Musk, announced it was developing a service called Starlink. Keep reading as we reveal more about this highly ambitious space internet service.
Elon Musk’s promise
Each satellite relies on a set of lasers to connect with four others in orbit. This allows them to stay in orbit longer, even at these lower distances from Earth. Elon Musk’s Starlink has FCC approval to launch 15,000 small satellites into low Earth orbit and eventually hopes to expand that goal to 42,000 to give true across-the-globe coverage. Elon Musk announced that a Starlink IPO date is likely to be set for 2025. This means that prospective Starlink investors will be able to get direct exposure to Starlink on the open market within the next few years.
Starlink Could Make Elon Musk a Trillionaire—How to Invest in It
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. On the one hand, rural broadband download speeds in the U.S. average 45.9 Mb/s, with some locations pinging in the low single digits. And the average cost for this service is about $50 — roughly the same price charged for much faster internet service in major metropolitan areas. If Starlink can deliver on its promise to provide 100 Mb/s speeds to all comers, at a $99 monthly price tag, its service should at the very least be competitive with alternative providers on a dollars-per-megabit basis. Once it becomes fully operational, Starlink will offer internet access from virtually anywhere on the planet.
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. 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. While there’s no way to invest directly in Starlink or SpaceX right now, here are a few ideas for gaining indirect exposure.
The Chinese government also complained to the United Nations after Starlink satellites almost hit the Chinese Space Station in low orbit. The government had complained that Starlink was making limited low orbit space overcrowded, and released a whitepaper calling for the destruction of Starlink satellites. Elon Musk continues to impress us with his innovative ideas that provide us with a glimpse into what the future might be like. Tesla brought self-driving EVs into existence and SpaceX is working toward making Mars inhabitable. Starlink is backed by SpaceX, a company founded by billionaire Elon Musk.
Until then, there are several ways that investors can gain indirect investment exposure to Starlink. The company suggests that users mount the base at or above ground level, although it must have a clear view of the sky. Starlink also said at the end of a satellite’s life, it “will utilize their on-board propulsion system to deorbit over the course of a few months,” which helps to keep space clean. SpaceX is responsible for constructing Starlink, a company that serves as a provider of high-speed and low latency broadband internet.
Currently, the company has an estimated 100,000 users spread out over 14 countries. On December 16, 2016, Google stock was trading at $809 per share, but that figure has increased exponentially. 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.