With Starlink’s escalating success and popularity, clever investors have already started finding out how to buy Starlink stocks.
Quick facts:
- Starlink is privately owned and funded.
- It is currently IMPOSSIBLE to buy Starlink stocks as a retail buyer.
- However, you can buy Starlink stocks on the grey market through brokers.
- Alternatively, wait until around 2025 and buy Starlink shares when they are likely to go public.
- Find a reputable brokerage firm, create an account, and buy Starlink stocks.
Starlink’s revenue shot up from $222 million in 2021 to $1.2 billion in 2022. Here’s your guide on owning Starlink stock as it heads to profitability.
Can I Invest In Starlink?
A trader views their investment portfolio.
You can invest in Starlink. It’ll help you gain an early profitable position if the company becomes profitable. You cannot directly invest in Starlink if you buy retail shares. However, the company is headed for an IPO in two years. You can invest early via brokerage firms or wait until they float the initial public offering(IPO).
Here are some indicators that should guide you in considering investing in Starlink.
Starlink is No Longer Selling Antennas at Losses
After its inception, Starlink revealed it was incurring losses in producing user terminals(satellite dishes).
However, they switched production to have efficient, cost-justified dishes. Also, it meant the $599 cost of the satellite dish was no longer eating into company revenue.
Production of the dish could sustain itself based on subscriber purchases.
Subscriber Increase
In 2015, Starlink projected they’d total about 20 million subscribers. While they’ve only reached 1.5 million in May 2023, there’s a long wait list as they deploy the service in global locations outside the US.
The steady increase in numbers and demand for fast, reliable internet is a solid foundation for a potential investor looking to buy Starlink shares when the IPO goes public.
Increased Revenue
Stable speeds and reliable performance have improved Starlink’s internet service uptake. The service with the highest user count, Starlink Residential, has a $120 monthly charge in the US and $140 in Canada.
Additionally, it has expanded to markets in Africa, South America, and Asia.
It also increased revenues with the addition of the more exclusive Starlink Aviation, marking a promising outlook on predicted earnings.
Elon Musk had stated the company would go public once they were in a stable position with good predictability.
The Likelihood of a Public IPO
In 2019, Elon Musk said in an e-mail that it would make sense to Starlink public in about three years. However, a definite date has remained unlikely and delayed.
Still, the SpaceX entrepreneur has maintained the company is on course to go public in 2025.
SpaceX’s Current Positive Valuation
In 2022, SpaceX sought to hold a round of funding. The company hoped to raise about $1.725 billion at $70 per share. The private company planned to inject the new capital into its Starlink and Starship venture.
The valuation of SpaceX placed it at $150B in 2023. Starlink’s valuation was about $81B.
Furthermore, did you know Starlink secured $885 million in broadband subsidies from the Federal Communications Commission?
Is Starlink Stock Available?
Starlink stock is currently not available on the retail market. Yet, it doesn’t rule out the possibility of you owning Starlink stock before the public IPO.
Starlink stock can only be available once the company goes public.
Although it is unavailable, you can still own a piece of Starlink. How? Buying illiquid Starlink shares from private stakeholders and transferring them to new retail investors.
You can expect a share price of about $560 from a funding round worth $100 billion valuation or $419.99 per share from a $74 billion valuation.
How Can I Invest In Starlink?
Since you cannot buy Starlink stock, you can invest in Starlink based on predicted success.
Elon Musk’s companies have seen some success. Tesla, the EV manufacturer, is already listed on public stock exchanges. It went public in 2010 at $17 a share. Its current share price rests at $250.
To that end, you have several options if you would love to invest in Starlink.
Trade in The Grey Market
The Grey Market allows you to trade private stocks of a company based on its potential.
When you buy Grey market stocks, you put yourself ahead of the curve before the company goes public.
With Starlink having announced plans to go public, you, as the investor, can trade its stock from the potential market capitalization of the company.
However, the company’s market capitalization at the close of its first trading day determines the price.
Wait for the Public IPO
The screen shows a company going public
Like many potential investors who believe in the Starlink project, you can wait until Starlink goes public. You can then use conventional trading platforms and invest in Starlink at the listed share price.
However, you must monitor funding rounds and updated valuations until about 2025.
Still, there are other ways to invest in Starlink indirectly.
Invest In Starlink Partner Companies
Starlink has partnership programs with companies that are already public. One of those companies is Shift4 Payments INC(FOUR on the New York Stock Exchange). The payment processing company, with a revenue of about $637 million in 2023, recently signed a 5-year partnership agreement with Starlink.
Alternatively, invest in Tesla. When the Starlink IPO comes out, it’ll be hot property. Elon Musk on social media stated that he might prefer ‘the people who showed support for a long time.’
This might be speculative, but Tesla shareholders might be one of the first ones to get retail shares when Starlink goes public.
Trade Starlink Stock in a Pre-IPO platform
Pre-IPO platforms such as EquityBee, EquityZen, and Nasdaq Private Market pool together accredited investors, brokers, and financial institutions to trade shares and stocks before a company goes public.
They act like alternative brokerage firms that connect stakeholders to get in early on privately funded companies and startups.
In Starlink’s case, a platform like EquityBee will take a shareholder’s capital in shares. They can then liquidate the illiquid shares profitably by trading them to you as a new retail investor.
How to Buy Starlink Shares
As a retail investor, you need about $200,000 in earned income for two years and expect the same amount to be an accredited investor in the next year.
You also must have a $1,000,000 net worth, not including the value of your current home.
However, you can buy Stalink shares through an accredited brokerage firm. Follow these steps to buy Starlink shares when they go public.
Choose a brokerage firm.
As a new investor, go for a registered authorized brokerage firm that offers deep research, low fees, great support, and minimal trading commissions.
Brokerages such as TD Ameritrade, E-Trade, and Fidelity Trade are great places to start.
Open and fund your account.
Create an account with the brokerage firm. The account will help you keep track of all your investment moves.
Link an accepted payment method to the account to fund it. Funding the account provides you with the money to buy Starlink stock.
Look for the Starlink stock symbol.
A stock symbol quickly helps you identify a company and buy stock on any exchange.
You may be asking what is the Starlink stock symbol. Since Starlink is not publicly tradeable yet, it doesn’t have a stock symbol.
It might probably go with STRLK. However, once Starlink goes public, it will have a symbol that you can use to identify it from a field of other stocks.
Decide on how much Starlink stock you want to own. We recommend consulting knowledgeable stock brokers and weighing your financial options before fully committing to how much you want to put in Starlink stock.
Search for the Starlink fixed ticker symbol and place a buy order.
Select an Order type.
As an investor, you have the power to state the pattern in which your stock brokers can execute a stock market trade on the exchange. Here are your order type options specifically for buying Starlink shares.
Market order: Here, you can buy Starlink shares at however much it costs per share when the stocks go public. The market will dictate your pay, depending on the share’s demand.
Limit order: You’ll buy the Starlink stock only at the desired price. The buy option only executes when the share price hits your desired price.
Execute the Buy Order
You intend to buy, right? Select how many Starlink shares you want to buy. Hit the ‘Execute’ option.
Conclusion
Exciting times ahead. While it may not happen soon, investing in Starlink sounds promising.
It’s a progressive company with a global outlook and a firm grasp on what the future needs: internet connectivity in left-out areas.
You can hop in now through private platforms such as EquityBee or hold on until the IPO goes public.