What is Starlink?
Starlink is a satellite constellation that provides internet access to most of the Earth, run by Elon Musk’s aerospace company SpaceX. It is a network of more than 8,000 satellites that claims to deliver high-speed internet service anywhere on the planet. Starlink has secured regulatory approval in 100 countries worldwide.
What could a SpaceX IPO mean for Starlink?
Starlink is not a separate company from SpaceX, but a wholly owned subsidiary operating under Starlink Services, LLC. It represents SpaceX’s satellite internet division, while SpaceX remains the parent company spanning launch services, spacecraft development, and related aerospace activities.
Although SpaceX is best known for its rocket launch capabilities, Starlink has become an increasingly important part of the group’s business. Through Starlink, SpaceX now operates the world’s largest satellite constellation, with more than 10,000 satellites providing broadband internet services to consumers, governments, and enterprise customers across multiple regions.
This growing scale has fueled speculation around Starlink’s standalone value and its contribution to SpaceX’s overall valuation. Reports have suggested that SpaceX may be considering a public listing in 2026, with some estimates placing a potential valuation as high as approximately US$1.5 trillion. Any such outcome would depend on market conditions, investor demand, and the structure and timing of a listing.
For investors and traders, the key implication is that gaining exposure to Starlink could depend on how SpaceX chooses to list. While there has previously been discussion about Starlink being spun off and listed independently, some commentary suggests that an IPO could include both SpaceX and Starlink as a single entity. These plans remain uncertain and subject to change. As a result, investors and traders should closely monitor any announcements around listing plans, corporate structure, and proposed ticker symbols.
How to trade on Starlink’s IPO
1. Register
Be ready to trade CFDs if Starlink or SpaceX lists.
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*CFD trading carries significant risks, you do not own underlying assets. Seek independent advice. Read PDS or IM (for CMC Pro) and TMD for CFDs at cmcmarkets.com.
2. Read our risk-management guide
Find out how to combat stock market risk by placing stop-loss and take-profit orders on open positions.
3. Practice while you wait
Trade on IPOs or competitor stocks such as Virgin Galactic, ViaSat and Boeing to solidify your understanding of the space market.
An overview of Starlink’s financials
Back in 2018, SpaceX estimated that the cost of designing, building, and deploying Starlink would be at least $10bn. Starlink first turned a profit, albeit a small one, in 2023, according to Musk. That same year, Bloomberg reported that parent company SpaceX was “on track to book revenue of about $9bn” in 2023 across its rocket launch and Starlink businesses, with sales “projected to rise to around $15bn in 2024”.
The report added that sales for Starlink were expected to outpace and exceed those of the launch business in 2024, meaning that Starlink would then account for the majority of SpaceX revenue. Bloomberg’s write-up also highlighted that the figures represented “a rare look into the finances of the Elon Musk-led company”.
Indeed, as a private company, SpaceX does not routinely share or publish accounts for its subsidiary Starlink or the business as a whole, so we may have to wait until closer to the IPO date for an opportunity to study Starlink’s financials in more detail.
Why may investors be interested in Starlink?
Starlink is believed to be SpaceX's largest revenue source, with the majority coming from recurring subscription services. This predictable revenue model may appeal to investors seeking space sector exposure without the volatility of traditional aerospace businesses.
Industry estimates suggest Starlink is generating positive free cash flow, having turned its first profit in 2023. This milestone could signal that the business has moved beyond its capital-intensive growth phase and is demonstrating financial sustainability ahead of an IPO.
A Starlink IPO would provide targeted exposure to the satellite internet market, rather than SpaceX's entire aerospace operation. This could prove attractive to investors interested specifically in telecommunications and subscription-based services, as Starlink continues expanding its global coverage across over 100 countries.
What are some potential challenges for Starlink?
The space technology sector is becoming extremely competitive, given advancements in 5G technology, which can offer gigabit-speed internet over a wide area. This means that as competition increases, Starlink needs to keep its services attractive and relevant, as well as reasonably priced.
Starlink’s services may be most attractive to areas with weak internet connectivity, such as rural and remote areas of the US and Canada where there is lower purchasing power, which could lead to more disappointing revenues than expected. In order to combat this, the company would need to offer superior services to target higher-value customers in urban areas.
Satellite constellations come with a number of external risks, such as the possibility of collisions and causing light/sky pollution. Although Starlink is trying to reduce these measures by lowering the altitude of its satellites and changing the surface material of its products, the risk still remains.
Who are Starlink/SpaceX’s competitors?
The space field is very competitive right now so there is a lot of pressure for both Starlink and its parent company to perform. In particular, the low earth orbit (LEO) satellite industry is quite niche, so the companies that would pose the most threat to Starlink perhaps would be:
ViaSat [VSAT]
Boeing [BA]
Globalstar [GSAT]
Iridium [IRDM]
EchoStar [SATS]
While Starlink has not yet listed, any future IPO could take place at a valuation that may be higher than that of many existing peers in the sector, depending on market conditions and company-specific factors.
Starlink may also face competition from billionaire-backed businesses such as Kuiper, a subsidiary of Amazon, which has been approved to deploy over 3,200 satellites as part of an initiative to build a LEO constellation, according to the company’s website. Another potential is Microsoft’s Azure Orbital, which is a fully managed Ground Station as a service introduced to the public in 2020. As the space sector is expanding so quickly, investors should keep an eye out for news and developments.
