Key Takeaways
- Starlink is a satellite internet provider from SpaceX, one of the most visionary projects to connect the world, and is rapidly expanding.
- Since Starlink is not publicly traded, investing in this company is not as easy as investing in Tesla or Apple; it can be tricky.
- Starlink has the potential to grow more as the demand for internet services increases rapidly. The LEO satellite service is expanding rapidly and is currently available in many countries.
- Once Starlink goes public, you must follow tactical approaches to obtain significant profits.
Introduction
Starlink is a satellite internet provider from SpaceX, one of the most visionary projects to connect the world, and it is rapidly expanding. Do you want to know how to invest in Starlink? The company isn’t yet publicly traded, so investing could be uncertain if you don’t have an adequate understanding of investing in these types of assets.
Although not publicly traded, Starlink gained notable investor attention because it is a subsidiary of SpaceX. This requires a certain level of analysis before making investment decisions.
What is Starlink?
Starlink belongs to the satellite communications industry and is a subsidiary of the American company SpaceX. The company was founded in 2018, and its first satellite launch occurred in 2019. It provides satellite-based internet solutions and is headquartered in Redmond, Washington, United States. The company has a mission to provide low-latency, high-frequency internet around the globe, and the current valuation of the company stands at $81 billion.
Starlink aims to provide an uninterrupted internet connection worldwide. It uses LEO (low Earth orbit) satellites to provide its services, which are suitable for geographically isolated or rural areas where internet connections are nonexistent and unreliable.
The company currently has approx. Seven thousand active satellites (LEO) are used to provide internet services, and there are plans to expand approximately 12000 and up to 34000 satellites potentially in the future to enhance services. Starlink is available in 125 countries and growing rapidly, with recent service expansion to Turkey, Bangladesh, and Morocco.
A SpaceX Falcon 9 launched twenty-three Starlink satellites on May 8, 2024. Credit: SpaceX
In December 2022, the company had 1 million subscribers; that number reached 4 million by September 2024. The number nearly doubled from 2.3 to 4.6 in 2024 alone, indicating rapid expansion and adoption worldwide.
Starlink's revenue figure is another attractive sector that attracts investors' attention. According to Sacra, the company generated $1.9 billion in revenue in 2022. That figure soared by 121.05% in the next year and reached $4.2 billion. It continues to surge in 2024 by 83.33% to $7.7 billion. The revenue is projected to hit $11.8 billion in 2025.
Can you buy Starlink stock?
Starlink is a privately owned company by SpaceX that was launched by SpaceX and is not currently listed on any public exchanges for investment. Therefore, it is not currently possible to invest directly in Starlink stock. The company is led by the famous billionaire Elon Musk.
The company has no specific IPO date yet, but Elon Musk hinted at the Starlink IPO back in 2021 in several tweets. He revealed that once they can reasonably predict the cash flow, the Starlink IPO may occur. It might be possible that the company go public in 2025 or the near future, as the cash flow has been reported well in recent years, as Elon Musk confirmed through tweets.
How to Invest in Starlink?
Direct Investment Opportunities (Pre-IPO)
In this section, we will cover how to buy Starlink stock directly:
Accredited Investment
If you are an accredited investor, you can invest in Starlink through pre-IPO funding rounds. To qualify as an accredited investor, which is under the SEC rules in the USA, you must pass at least one of several criteria, such as annual income exceeding $200K for the past two years, net worth exceeding $1 million, excluding primary residence and holding specific financial licenses (Series 65, Series 7, etc.).
Secondary Market
Secondary market platforms are another method you can use. Platforms like SharesPost, EquityZen, Forge Global, etc., enable investors to purchase shares from early investors or employees. These shares can be sold in bundle lots, and liquidity isn’t guaranteed as the transaction depends on company authorisation and the willingness of buyers and sellers.
Indirect Ways to Invest in Starlink for Retail Investors
Retail investors can take part in the Starlink stock in the following ways:
Publicly Traded Trusts
Starlink remains a privately owned company and is not publicly traded, so you cannot invest directly in the company or buy stocks from exchanges. However, there are publicly traded trusts or different venture capital funds that allow investors to invest indirectly in Starlink, such as Baillie Gifford’s Scottish Mortgage Investment Trust (LSE: SMT). This trust invests in SpaceX and enables indirect investment exposure to Starlink.
Starlink Stakeholder
Another indirect investment method is investing in companies that are suppliers or benefit from SpaceX or Starlink's progress. For example, investors can invest in Tesla, as Elon Musk announced in his tweet back in 2024 that Tesla stockholders might get priority when Starlink or SpaceX goes public.
Publicly Traded Stakes
Other companies, like Alphabet, Google's parent company, invest in SpaceX. Other companies, like NVIDIA and AMD, also supply SpaceX with data processing units and high-performance chips. Investing in these companies may enable indirect investment or benefit Starlink if the IPO occurs or the company continues to grow.
Alternative to Starlink
Retail investors can invest in many other competing space-related or satellite internet companies, as the market is anticipated to exceed $20 billion annually by 2030. For example, Viasat Inc. (NASDAQ: VSAT), AST SpaceMobile (NASDAQ: ASTS), EchoStar Corporation (NASDAQ: SATS), etc.
However, finding a stock to trade is often challenging as it requires sufficient knowledge to anticipate the future price. You can use AI Stock Picker from Intellectia.ai to detect better opportunities or to seek alternatives to Starlink.
Should You Invest in Starlink?
When making investment decisions, you must consider the asset's advantages and disadvantages, or risks and potential. Let’s examine Starlink's pros and cons.
Pros
- Starlink has the potential to grow more as the demand for internet services increases rapidly. The LEO satellite service is expanding rapidly and is currently available in many countries.
- The company is expanding so rapidly that its subscriber number has increased notably in recent years, which can benefit its investors.
- Starlink offers high-speed internet and AI-powered optimisation, which are attractive features and can boost rapid adoption.
Cons
- The company Starlink is currently privately owned and limited to investment. Therefore, its financial data is not public, and financial transparency is lacking.
- The company isn’t publicly traded, so there is a risk of valuation uncertainty during or after the IPO event.
- The company faces competition from several giants in the USA and other regions like China and Russia. It may also face regulatory challenges, negatively impacting its future growth.
Step-by-Step Guide to Investing in Starlink
Let’s see how to invest in Starlink stock with a step-by-step guide:
Open a Brokerage Account
The first step for investors is to open an account in a brokerage or platform, which enables them to participate in pre-IPO and post-IPO investing. When opening an account, it might be subject to verification through identity verification and other means.
When verified, you can access major IPOs, ETFs, stocks, etc. When verification is completed, you can deposit and invest in various trading assets that are already available on your platform.
Monitoring Starlink's IPO Announcement
When you have an account on a broker or financial platform and have made a deposit, you should keep monitoring data regarding the Starlink IPO. You can use intellectia.ai trending news, which covers the latest news on supply chain movements, regulatory whispers, and possible pre-IPO events.
Research and Select Investment Vehicles
As the company Starlink doesn’t allow direct investing, you can choose companies that benefit through the company, space sector, satellite internet-related companies, or funds. For example, companies like Tesla (TSLA), Alphabet (GOOGL), Iridium (IRDM), etc., or tech suppliers like NVIDIA (NVDA), AMD, etc.
Post-IPO Investment Strategies
Once Starlink goes public, you need to follow tactical approaches to obtain significant profits. You have to decide whether to hold the company for a long time, make short-term profits, or diversify your investment.
Long-term holding
For long-term investing, you can follow the buy-and-hold approach, as the company has room to expand. You can use Intellectia.ai Swing Trading to find a reliable price point from where buy-and-hold will be possible.
Short-term investment
You can detect volatility and make considerable profits through short-term investment strategies, such as news trading, day trading, scalping, etc. You can use Intellectia.ai Day Trading Center for better trade suggestions.
Diversify other assets or tech stocks
You can diversify your investment to other satellite communication companies, AI stocks, cloud service stocks, aerospace primes, etc.
Focusing on multiple stocks is often challenging as it requires widespread knowledge and focus. However, investors can simplify it by implementing technical analysis along with the fundamental data to make a better trade decision.
It is easy to find what different technical indicators are telling about a stock from the intellectia.ai Stock Technical Analysis tools.
Conclusion
So, this is how to invest in Starlink. The company Starlink doesn’t enable direct investment for retail investors, but you can follow a disciplined approach to invest in the company in pre-IPO and post-IPO trading.
Whether you decide to open an account, you can use Intellectia.ai to generate different attractive investment ideas, and the platform offers various attractive features that might help you make adequate trade decisions through sufficient research.
