$4 billion annual operational expenses, 4,400 space satellites, and 32 countries. If there’s one thing about Starlink, it’s that it is expanding, and it’s doing so at an enormous speed. The company is launching dozens of satellites into space each month and expanding to new countries, the latest one being Ukraine. For any investor, this seems like a lucrative potential investment. But the million-dollar question is: how Can I invest in Starlink? No, you cannot, at least not at the moment. Starlink is a private-owned entity that is yet to go public. This means that the firm has not listed itself for an IPO.
However, you can still invest in the business indirectly. Here’s how.
Table of Contents
- What is Starlink?
- What is an IPO? How do I buy IPO stocks?
- Will Starlink go public? When to expect a Starlink IPO?
- How to buy Starlink stock pre-IPO?
- How to invest in Starlink IPO?
- Determine Your Order Type
- Frequently Asked Questions
- Conclusion
What is Starlink?
Starlink dish installed outside a home.
Starlink, a subsidiary of SpaceX, is an internet company that provides Satellite internet to its users. The company is popular for its high bandwidth efficiency and aims at connecting everyone on the planet with an internet connection, even in the most remote areas.
What is an IPO? How do I buy IPO stocks?
Initial Public Offering
When a private company goes public, the owners sell a share of the firm. This type of equity is known as Initial Public Offering (IPO). An investment bank organizes for the IPO to allow investors to own shares of the firm.
There are numerous strategies and techniques to buy IPO stocks from a firm that plans to go public. One common way is by contacting a stockbroker. You can also contact a financial business that’ll guide you on how to trade IPO shares.
Will Starlink go public? When to expect a Starlink IPO?
Going public on the stock exchange
When talking to SpaceX employees, Elon Musk said that the company is not likely to take its business public, at least not until 2025 (courtesy, CBNC). This delay comes amidst inquiries from numerous investors over the years who wish to own a piece of the company.
Last year, Musk hinted at going public with the company in 2022. However, later on, he seemed to change his mind in one of his tweets, “We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable… I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.” (source: Twitter)
How to buy Starlink stock pre-IPO?
Not all hope is lost. You can still invest in Starlink indirectly. Here are a few options for you.
Invest in Starlink partners
Starlink has 10 partnering companies, the major ones being SpaceX, T-Mobile, and Shift4 Payments. Investing in these companies would make sense since they are connected to Starlink.
Invest in Tesla
Tesla is another of Musk’s companies that are currently public. Tesla is the leading producer of electric vehicles and is currently working on equipping its automobiles with full internet capabilities. It’s, therefore, not crazy to think that Starlink would reap big in this.
Look for Starlink on pre-IPO trading platforms.
Pre-IPO platforms such as EquityZen and IG allow you to trade SpaceX or Starlink shares before they go public. Purchasing such shares is a great way of staying ahead of other people.
How to invest in Starlink IPO?
Analyzing the worth of a business
Once Starlink goes public (pretty sure it will), here are the steps you should take to invest in it.
Select a Brokerage
You will first need a brokerage to invest in Starlink. There are lots of options to go with. Decide on a strategy and choose a platform you are comfortable with.
Open and Activate a Trading Account
The next step is to open and activate an account with your brokerage. The account is for keeping track of your transactions and trading (swapping stocks at preset rates and intervals).
Deposit Funds Into the Account
After your brokerage authorizes your account, link it with an accepted payment method. You will also need to deposit money into your account. Different brokerages have different minimum deposit amounts.
Search For Starlink and Input How Many Shares You Want
Search for Starlink’s name and ticker symbol. Starlink will make its ticker symbol public and accessible once they have one. Next, decide on the number of Starlink stock shares you wish to purchase.
Please do some research to determine whether it’s the right investment. Proceed once you are sure.
Determine Your Order Type
There are different types of order types. This is how you will execute a trade.
Limit orders: You execute transactions at a specific price only.
Market orders: A market order allows you to sell or purchase securities but doesn’t guarantee a price execution.
Stop-loss orders: With stop-loss orders, you can close your position at the specified or next available price, whichever is higher.
The last step is to execute your investment. First, you choose a type of action, whether to buy or sell. In our case, we buy. Next, enter the number of shares you want to buy. Lastly, select the Execute option. It’s that simple.
Frequently Asked Questions
What is Starlink’s stock symbol?
Starlink does not have a stock symbol since it is yet to go public. It will have one once it is listed on the stock exchange.
How profitable is Starlink?
Starlink is making profits between $300- $500 million a year. However, the CEO and president of SpaceX estimated the value of Starlink to be as high as $1 trillion. This is if it could convert every potential sale lead into a customer.
Conclusion
Starlink is, without a doubt, a success, and it would make an excellent investment choice. While you can’t invest in the company directly, you can purchase its Pre-IPO shares or invest in its partner companies. But we wait and see until it’s listed on the stock exchange.
