To the Moon! How to Invest in Elon Musk’s Starlink
Key takeaways
- Elon Musk’s satellite company Starlink now has 1.5 million subscribers and is set to make a profit for the first time this year
- IPO may be on the cards in the future if the business revenue is “reasonably predictable”
- Parent company SpaceX is also private, but Amazon is developing a competitor
On the face of it, satellite company Starlink doesn’t sound like a fascinating venture, but the business is revolutionizing the internet for remote regions of the world and has private investors lining up around the block. Here’s the lowdown on Starlink and how you can invest in the burgeoning business.
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What is Starlink?
Starlink is the satellite internet brainchild of billionaire Elon Musk, with the company sitting as part of Musk’s rocket ship company, SpaceX.
Designed to bring high-speed internet to every nook and cranny on Earth, Starlink now has over 1.5 million subscribers across 50 countries and 4,000 operational satellites in orbit. Half a million of those have joined in the last five months alone, which is stratospheric growth for a satellite company.
As a result, Starlink is apparently set to make a profit for the first time this year, and has apparently attracted substantial interest from the maritime and aviation sectors, indicating a growing corporate client base for the venture.
Can you invest in satellite internet services?
Unfortunately, neither SpaceX or Starlink are public companies. The only public company Elon Musk has is Tesla, which has enjoyed a phenomenal run this year on the stock market — Tesla’s share price has soared 123% this year.
It’s entirely possible we could see SpaceX and Starlink go for IPOs in the future. Back in 2020, SpaceX COO Gwynne Shotwell said “Starlink is the right kind of business that we can go ahead and take public,” but Elon has since commented the business’ revenue needs to be “reasonably predictable” before that happens. So it sounds like we’re at least a couple of years away from that point.
How can you get indirect exposure to the growing satellite internet market? Well, Amazon is said to be putting out a Starlink competitor. Details are still scarce, but we know that Amazon’s Project Kuiper will help remote corners of the planet access the internet via a ‘satellite constellation’. Amazon shares currently trade at around $127, with the conglomerate seeing a 48% share price boost in 2023.
The bottom line
If Starlink can show its consistent profit, Musk might be tempted to take the company public. Given its incredible growth so far, investors may be able to buy shares in the satellite business sooner rather than later.
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