Starlink IPO Gets Nearer As Cash Flow Turns Positive - Rumor or Not?

March 23, 2023 5:00 pm
Published by: Benjamin Baxter

In 2014, Elon Musk launched what would later be one of the most cutting-edge projects in the space industry.

Starlink started as a satellite constellation operating under SpaceX. According to Musk, he’d intended for it to be the main source of income for the mother company, and lately, there’s been strong talk about Starlink IPO.

The constellation’s main purpose was to deliver satellite internet access to rural areas. However, it now provides services to 47 countries worldwide, exceeding its original goal.

According to Musk and some statements by Gwynne Shotwell, SpaceX’s CEO, the Starlink IPO gets nearer as cash flow turns positive. Let’s see what that means and how true it is.

An Overview of Starlink’s Finances

Since 2014, Starlink has been raising funds to shoot more small satellites into low Earth orbit. Since it’s still a private company operating under SpaceX, we don’t have full financial info about the constellation. However, there have been some details made public.

Starlink spent around $10 billion to launch satellites into orbit. According to SpaceX executives, the project is expected to drive in around $30–$50 billion annually eventually, making it the company's main income source. However, that’s currently a far-fetched goal.

In late 2022, Starlink recorded one million subscribers. With simple mathematics, you’d learn that this number brings in $1.5 billion in revenue, which is still far from SpaceX’s goals for Starlink.

However, it looks like SpaceX’s executives aren’t concerned. Shotwell estimated that Starlink would reach 60 million subscribers in the coming years.

In 2021, SpaceX raised $850 million for Starlink through equity funding. Only a year later, SpaceX applied for funding from The Federal Communications Commission, but it was rejected because, according to the FCC, Starlink didn’t meet the performance standards required to get the funding.

The main issue was about the internet speeds. When The FCC tested Starlink’s internet speeds, the uploading speed was below the 20 Mbps required to pass the test. SpaceX appealed the decision but was still not granted the funding, which was reportedly around $888.5 million.

Is Starlink IPO Getting Nearer?

Since Elon Musk ignited the flame and talked about IPO plans, investors have been watching Starlink closely, waiting for the company to open its doors for public trading. However, it’s been taking longer than expected, and it’s still not getting as close as people thought.

In 2020, Musk stated through a tweet that Starlink stock would be open for public trading when it has a positive, predictable cash flow. The tweet created a hiatus, and people started throwing speculations around the IPO date.

Around two years later, Shotwell hinted at plans for the Starlink IPO, mentioning that it’s a business that should go public.

In late 2022, Shotwell stated that for the first time since its launching, Starlink recorded a positive flow of cash in one of the year’s quarters. You’d think this means the IPO is getting nearer, but according to CNBC, Elon Musk told his employees in mid-2022 that an IPO is still 3 or 4 years away.

How to Invest in Starlink

Since there hasn’t been a Starlink IPO yet, there’s no way to invest in Starlink because it’s not available for public trading. Though an IPO is reportedly on the horizon, until that happens, there’s no official way to invest in the project unless you’re an accredited investor.

To register for the Starlink IPO, then sign up with eToro, as they will make the stock available to you at the earliest opportunity.

If you are in the US, you can register for the Starlink IPO here and make a deposit, and then you will be informed as soon as Starlink stock is available.

For the rest of the World, apart from India and Canada, register for Starlink IPO Stock here.

You must fully activate your account by making a deposit to gain access.

Register with Switchmarkets here for the best chance of picking Starlink stock up for India and Canada. They also offer up to a $5,000 sign-up bonus.

SpaceX Stock Price

Since SpaceX stock isn’t on the public market yet, there isn’t a current official share price. In 2021, each share was valued at nearly $420, bringing the company’s entire valuation to a whopping $74 billion.

A year later, particularly in February 2022, SpaceX made a smart move to raise its valuation. Back then, each share was valued at $560, but that was short-lived. The company decided to split its shares 10-for-1, which would split the $560-share into ten shares, each valued at $56.

You’d know it’s a smart move when you learn that later in the same year, the company allowed the insider investors to sell their shares for $77 each. That decision alone jump-started the company’s valuation to $137 billion.

Conclusion: Is Starlink IPO Getting Nearer?

According to Elon Musk, a Starlink IPO will only be a reality when the project has a smooth financial situation with positive, predictable cash flow. Since that’s not the case yet, Musk expects 3 or 4 more years until Starlink opens its doors to public trading.

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.

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