Will there be a Starlink IPO? That’s what it looks like after Elon Musk took to Twitter Tuesday. He responded to a question about Starlink going public. His answer has investors rallying for Starlink stock.
Will Starlink be going to an IPO anytime soon? Here’s what we can share with you…
Starlink IPO: The Business
Starlink is a satellite internet constellation. It’s a SpaceX project, the space company founded by Elon Musk. He aims to make internet services available to everyone, regardless of geographic location. The satellites demand a clear view of the sky, but they don’t need ground structures.
Starlink satellites are in low Earth orbit (LEO). They’re placed at 550 km, half the average satellite’s distance. Moreover, a satellite will systematically deorbit at the end of its useful life. It will also do this in the event the system malfunction. After deorbiting, satellites will burn up in Earth’s atmosphere. While satellites at a higher altitude take hundreds of years to burn, Starlink’s low-orbit satellites will burn up in about one to five years.
But after a tweet from Musk about a Starlink IPO, investors want to know just how far along the company is.
Starlink’s Mission Progress
Starlink’s latest mission launched January 20 at 8 a.m. EST. Each mission launches 60 new satellites, and this marked Starlink’s 17th mission. The company now has over 1,000 satellites in orbit, a big jump from the approximate 250 satellites last year. Starlink claimed it needed 800 satellites to begin providing internet services.
Starlink is currently in beta testing. The firm has about 10,000 users. To see if Starlink offers service in your area, you can go to the Starlink website. Starlink’s homepage features an order form for preorders, costing only $99 a month.
But the actual cost upfront is $600. In addition to the monthly payment, consumers have a one-time $499 fee for a Starlink kit. It includes:
- Wi-Fi router
- Terminal to connect to the Starlink constellation
Starlink told beta users to expect data speeds varying from 50Mb/s to 150Mb/s and latency from 20ms to 40 ms. The company intends to remain developing the system during the beta phase. It’s currently available in the U.S., Canada, and the U.K. Starlink wants to have 42,000 satellites in orbit by mid-2027.
Beta Testing Gives Starlink Reports
If investors need a basis for Starlink stock other than being involved in some of today’s cutting-edge technology, Starlink already started the humanitarian side of the deal. On October 6, 2020, SpaceX posted a Starlink mission update, including a testimonial.
Last week, emergency responders in Washington State shared their experience using Starlink. In the wake of the wildfires that devastated areas of the state in August, first responders there have been using the service for their purposes and to help bring the residents of Malden internet service while they rebuild their community. Malden is located about 35 miles south of Spokane, Washington, which falls within the northern latitudes our satellites currently service. The way emergency responders deployed Starlink in this context represents how Starlink works best—in remote or rural areas where internet connectivity is unavailable.
On October 18, 2020, SpaceX updated:
As our Starlink network is still in its early stages, the Starlink team continues to test the system, collecting latency data and performing speed tests of the service. The team also recently installed Starlinks on the Administrative Center building and about 20 private homes on the Hoh Tribe Reservation, located in a remote western Washington State area where internet access is limited or completely unavailable. You can learn more about the Hoh Tribe’s experience here.
So, it looks like Starlink has a stable operation. But should you invest in a Starlink IPO?
Points From the Expert
Andy Snyder, the founder of Manward Press, recently talked about Starlink. Snyder is into the tech industry, and 5G is a hot topic. In an article from December, he wrote about the FCC putting C-band waves up for auction.
C-band is the spectrum 5G works on, making it critical for any player wanting in the 5G market. While the right to C-band was once free, the FCC is charging big time. And according to Snyder, $52 billion is expected to be paid.
But in addition to selling the waves, the FCC advertised it awarded Elon Musk $855 million for its Starlink project. Why? Because it’s currently the U.S.’s closest chance of bringing the internet to rural America.
Starlink’s big win in this FCC handout came as a surprise to many in the industry. Plenty of analysts didn’t expect the satellite industry to get a penny. But in the end… it got close to a billion bucks. We hope the 5G crowd is paying attention. The big carriers are surely getting worried. While that industry got buried in bureaucracy, the free market mavens lit up the skies. The satellite industry – and the shadow it casts on 5G – will be one of the biggest tech stories of 2021.
It looks like Starlink isn’t only launching satellites but the entire industry as well. Although Apple and Amazon are in the race, Starlink is far ahead in several satellites, beta testing, and SpaceX’s revolutionary rocket technology.
So, back to the big question: will Starlink IPO? The answer is likely yes.
Starlink IPO Information from Elon Musk
On February 9, 2021, Musk responded to a tweet directly asking if Starlink will soon go public. And for the first time, investors got the answer they’ve been looking for.
Investors are ready for Starlink stock to come to market. But it won’t be in 2021. Following his decision, Musk followed up with two more tweets.
SpaceX needs to pass through a deep chasm of negative cash flow over the next year or so to make Starlink financially viable. Every new satellite constellation in history has gone bankrupt. We hope to be the first that does not.
Starlink is a staggeringly difficult technical & economic endeavor. However, if we don’t fail, the cost to end-users will improve every year.
SpaceX said it would cost about $10 million to build Starlilnk’s network. That’s with the hope it’ll generate $30 billion in annual revenue. Musk claims he’s shooting for $50 billion. But industry specialists say it could take three years and three million subscribers for the company to start paying for itself.
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When will Starlink IPO? If analysts are right about how long it’ll take for positive cash flow, investors might not see Starlink stock until 2024. Until then, check back for more Starlink IPO news.
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