Starlink is a satellite constellation run by Elon Musk’s SpaceX company. The constellation is of 1000 satellites to provide high-speed, low latency broadband across the globe. The orders have been on a first-come, first-serve basis with each coverage area. The service regulation is in many parts of the world, such as the UK, Australia, Greece, and Germany.
According to Starlink’s financials of 2021, with a monthly fee of $99, the actual recurring revenue was $0.18 Billion from 150,000 subscribers. The financials are estimated for years forward as follows, 2022 with 1,000,000 subscribers, the total revenue would be $1.19 Billion keeping the monthly fee constant for all upcoming years. In 2023, it will project 4,000,000 users and $4.75 Billion in revenue. 2024 with 10,000,000 and $11.88 in revenue. For 2025, the estimated number of users goes around 25,000,000 to generate a projected revenue of around $29.70.
A breakdown of Starlink’s statistics would show that in the first quarter of 2021, the number of subscribers was 30,000 to 70,000 in the second quarter, subsequently the third quarter with 120,000 and finally 150,000 in the final quarter.
In 2022, starting from 300,000 subscribers being an estimated approach to the number of subscribers who availed of the service in the first quarter, Starlink would see it rise to 450,000 subscribers in its second quarter, 700 in its third, and 1,000 in the fourth quarter respectively.
According to sources, the cumulative number of Starlink satellites launched from 2019 to 2022 saw growing from just 60 satellites on May 24, 2019, growing to 1,735 satellites on May 26, 2021. The growth surge is exponential.
Rumors surrounding Starlink’s IPO
He tweeted Starlink’s IPO announced by Elon Musk as of Feb 2020 as “At least a few years before Starlink revenue is reasonably predictable. Going public sooner than that would be very painful. Will do my best to give long-term Tesla shareholders preference.”
Elon Musk has not been keen on releasing the Starlink IPO in 2021 but says it would be only released when the cash flow is more predictable. The release may also take years because it would depend on the factors that generally impact the space sector.
Some rumors spreading about the Starlink IPO for the year 2022 revolve that the IPO would be around $70 to $80 Billion. Predicted estimates for the number of users of approximately 80 million for the Starlink satellite broadband service in its down the line estimated users, the revenues are projected to be around $100 billion. The potential upside for the investors for investing in the Starlink IPO would be from 4-5-fold gains when the company continues to thrive for profit. This company is not going anywhere because the metaverse is expanding.
With more and more consumers jumping into the world shifting to the future of the internet, the company will keep making profits. Its high-speed services are a bit expensive but provide highly effective services for streaming platforms and much more gigantic network-based projects needing a level of bandwidth that this service fulfills. The total market addressed for Starlink is thus very massive.
Eight billion people, the entire approximate world population on the planet, will be connected with high broadband connectivity because of the service. The company is working on Space X to fund its innovation from Starlink revenues. Elon Musk’s venture to connect Earth and Mars makes human beings a species to survive both the planets, for which the internet infrastructure needs to be far from efficient. Space X is investing heavily to make this possible with Starlink. The technologies used in the business are tough to replicate, thus making it a company that can produce high margin profits straight off in the face of its competitors.
For mining Cryptocurrencies needing a proper internet connection, the miners can monetize the internet. This technology will significantly impact the future of various space sector industries. The space sector competitors are also booming with the stocks available to trade, the stocks being ViaSat [VSAT], Boeing [BA], Orbcomm [ORBC], Globalstar [GSAT], Iridium [IRDM], and EchoStar [SATS].
Betting on a competitor’s stock can be a good option when the hoards of Starlink company have not arrived yet. Being the downside of these listed stocks of space sector competitors valued at around $2-6 Billion and Starlink not being listed yet as of Jan 2022, when it does, it is going to gain a significant share in the market compared to its competitors. Starlink is going to become a super capital-intensive business.
However, it would be losing money in its initial phase with the gain of many subscribers and the launch of more satellites. The outcome would be better to expect as an IPO investment.
Why should you invest in the Starlink IPO?
Keeping the risk management strategies in mind, leaving the accumulated profits, and then gradually increasing your position in line with the increasing capital can have long-term benefits than investing in the short term.
For projected estimates totaling 80 million users worldwide, the revenue being $ 100 billion on it, this company can easily do. Everybody wants to invest in what Elon Musk has to offer. Starlink’s IPO may take another year till 2023-24 to get the IPO upfront to invest.
The investment is being made at risk in the short term to gain success for a long time. The investors, however, need to keep an eye on the news and developments because the competitors other than the ones mentioned, such as Kuiper, a subsidiary of Amazon, and Microsoft’s Azure Orbital introduced in 2020, are billionaire-backed businesses. According to the company’s website information, Kuiper has gained approval to bring the 3200-satellite constellation into effect as an initiative to build the LEO constellation.
However, as long as tech is growing, Starlink will be a massive competitor and offer exponential benefits for its investors. Starlink is performing exceptionally well on how high-speed connectivity can change the future. As a result, investors can rely on their stocks on this company when listed.