For those living in remote and rural areas, Starlink has become a game-changer. Developed by SpaceX, Starlink offers high-speed internet to places where traditional broadband options are limited or pretty much nonexistent. Our Starlink review helps you understand how they work.
Sadly, this is more common than you think. Not surprisingly, with its rapid expansion and increasing global impact, Starlink has also generated a lot of interest as a potential investment.
However, since Starlink is a SpaceX private subsidiary, you can’t directly buy shares in Starlink. While it’s not yet publicly traded, there are still indirect ways to gain exposure to Starlink’s growth potential and the satellite internet industry.
In this blog, we’ll cover various ways to invest in Starlink. We will also discuss indirectly investing in SpaceX or companies with financial ties to SpaceX and alternative satellite internet stocks.
Starlink Review Introduction
Created by SpaceX, Starlink provides satellite internet service around the world. They aim to provide fast, low-latency internet access to those in rural and underserved regions. I’m sure you’re wondering how they do this. Our Starlink review will tell you.
Well, Starlink has an extensive network of low-Earth orbit satellites to deliver internet speeds ranging from 50 to 200 Mbps.
It is a great option for activities like streaming, online gaming, and remote work in areas where traditional broadband service is limited or unavailable.
Places like this are far more common than you think. Even when I go to the beach, just a short 30-minute drive away, there’s no cell or internet coverage. Personally, I purchased the Starlink equipment so I could surf and be online to work when I needed to be.
Why You Can’t Directly Invest In Starlink
Starlink operates as a subsidiary of SpaceX, which remains a private company. SpaceX founder Elon Musk has indicated that he intends to keep SpaceX—and, by extension, Starlink—private until the business matures.
Due to the substantial investments needed for satellite deployment, SpaceX has indicated that Starlink will go public once it reaches financial stability and consistent profitability. It may take several more years.
Starlink is currently generating revenue through its satellite internet service, but is still investing heavily in infrastructure and satellite deployment.
As a result, its financial model is focused on rapid expansion rather than immediate profitability. Some analysts predict that Starlink may eventually go public.
But Musk has stated that he wants Starlink to be in a stable financial position before considering an IPO. Until then, traditional stock market investors won’t be able to buy shares directly in Starlink.
How to Indirectly Invest in Starlink
Since Starlink is not available on the public stock market, which means you can’t buy shares in it. However, you’re not out of options; I’ve laid out a few ways below you can gain exposure to Starlink:
Buy SpaceX Shares Privately
- Accredited Investor Access: SpaceX occasionally offers private placements. Hence, if your net worth is over $1 million or you have an annual income over $200,000, you qualify as an accredited investor. As a result, you may get access to SpaceX’s growth, including Starlink, for high-net-worth individuals.
- Through Secondary Marketplaces: Platforms like Forge Global and EquityZen connect accredited investors with existing shareholders looking to sell SpaceX shares. While access is limited, these marketplaces allow eligible investors to indirectly benefit from SpaceX’s ventures, including Starlink’s expansion.
You Can Invest In Companies with SpaceX Exposure
- Alphabet Inc. (GOOGL): Alphabet, Google’s parent company, invested about $900 million in SpaceX in 2015, giving it a stake in SpaceX’s growth. Investing in Alphabet provides indirect exposure to Starlink’s potential, as the company shares in SpaceX’s success.
- Bank of America (BAC) and Fidelity Investments: Both companies have financial connections to SpaceX, with Fidelity managing funds that hold stakes in SpaceX. Hence, if you buy shares in these companies, you’ll benefit modestly from SpaceX’s progress.
You Can Buy Funds and ETFs with SpaceX Ties
- Ark Space Exploration & Innovation ETF (ARKX): Managed by Ark Invest, ARKX focuses on companies in the satellite, space, and exploration sectors. For those seeking exposure to Starlink, these are attractive options. While it doesn’t directly hold SpaceX stock, ARKX’s portfolio aligns with the broader space technology market.
- Global X Internet of Things ETF (SNSR): Though centred on IoT, SNSR invests in companies involved in satellite infrastructure, indirectly benefiting from growth in global internet connectivity, which aligns with Starlink’s mission.
Starlink Review Quick Takeaway
- Starlink is a private subsidiary of SpaceX and isn’t publicly traded, so you can’t directly buy shares of it.
- Investors can indirectly gain exposure to Starlink’s growth by buying SpaceX shares privately (for accredited investors), investing in companies like Alphabet that hold SpaceX shares, or exploring relevant ETFs and competitor satellite stocks.
- The satellite internet market is a rapidly growing industry poised for expansion as global internet demand increases.
- Competitors like HughesNet, Viasat, and 5G home internet services are viable alternatives for investors interested in the satellite internet sector.
Starlink Pros and Cons Review
While indirect investment exposes Starlink’s success, advantages, and disadvantages exist.
Pros
- Exposure to Satellite Internet Growth: Indirect investments can give you the benefit from the growing demand for global internet access without waiting for Starlink to go public.
- Diverse Investment Options: Investors have multiple ways to gain exposure to this sector, from ETFs to related companies’ stocks.
- Potential for High Returns: SpaceX and its subsidiaries, including Starlink, are at the forefront of space technology, which could result in long-term solid returns.
Cons
- You Don’t Directly Own Starlinkg Shares: Indirect investments don’t provide direct ownership of Starlink shares, limiting control and visibility.
- Limited Accessibility: Some investment methods, like private equity purchases, are limited to accredited investors with substantial financial resources.
Starlinks Competitors
| Symbol | Name |
|---|---|
| VSAT | Viasat |
| IRDM | Iridium Communications |
| GSAT | Globalstar, Inc. |
While Starlink is a popular option for high-speed satellite internet, several other providers are in the market.
1. HughesNet
HughesNet is one of the oldest satellite internet providers. It offers reliable service across the U.S., but its speeds are generally lower than Starlink’s, with higher latency, making tasks like video calls and online gaming challenging. HughesNet also has data caps, which may limit high-speed internet usage.
2. Viasat
They provide satellite internet globally and offer faster speeds than HughesNet, but they still have higher latency than Starlink. Viasat also has data caps, meaning your speed may be reduced once you reach your data limit. However, it’s an option for users in areas where Starlink isn’t yet available.
3. 5G Home Internet
Companies like Verizon and T-Mobile now offer 5G Home Internet, which can deliver speeds similar to Starlink in urban and suburban areas with good 5G coverage. However, 5G home internet isn’t yet widely available in rural areas, so it’s not a complete alternative to Starlink for users in remote locations.
4. Iridium Communications (IRDM)
Iridium provides satellite communication for remote areas, focusing on satellite phone services, which aligns with Starlink’s goal of reaching underserved regions.
5. Globalstar, Inc. (GSAT)
Globalstar provides satellite-based voice and data services to rural and remote areas, similar to Starlink’s mission of connecting underserved communities.
Starlink Revenue
|
Year
|
Revenue ($bn)
|
|---|---|
|
2024 |
7.7 |
|
2023 |
4.2 |
|
2022 |
1.4 |
|
2021 |
222 (million) |
Starlink Customer Reviews
There are 101 customer reviews for Starlink on Trustpilot with a 2.8 TrustScore (Average).
Final Thoughts: Starlink Review
We hope you enjoyed this Starlink review. While direct investment in Starlink isn’t available, there are indirect ways to gain exposure. Accredited investors can buy private SpaceX shares, while others can invest in companies like Alphabet or explore ETFs and competitor stocks in the satellite internet market.
Frequently Asked Questions
What Are the Risks of Investing in the Satellite Internet Industry?
Investing in satellite internet can be risky. The costs of launching satellites are high, and companies face regulatory challenges. They also compete with new technologies. Weather can cause outages, and maintenance can eat into profits. Because of these factors, investing in satellite internet companies can offer both potential rewards and risks.
Could Starlink Eventually Replace Fiber Internet?
While Starlink is a good alternative in areas without fibre, fibre internet generally offers faster speeds and more stable connections. Because of this, Starlink is ideal for remote areas lacking fibre or cable infrastructure. However, in urban settings where fibre is accessible, fibre will unlikely be replaced as the preferred option.
Will SpaceX’s Success Impact the Future of Starlink?
Yes, SpaceX’s overall success directly impacts Starlink’s future. This is because SpaceX provides the launch services and infrastructure needed for Starlink’s satellite deployments. As SpaceX improves its reusable rocket technology and satellite systems, Starlink may save money and grow faster worldwide, making it an attractive option in the satellite internet market.
How Does Starlink’s Pricing Compare to Other Satellite Internet Options?
Starlink’s standard monthly fee is $110, with an upfront equipment cost of $599. While this is higher than some terrestrial broadband options, it’s competitive within the satellite internet market. And a lot of times, they have sales. I managed to buy my equipment for 50% off! Traditional satellite providers often have similar or lower monthly fees but impose data caps and lower speeds, making Starlink more appealing to rural users needing reliable, high-speed internet.
