How can I buy Starlink stock? If you’ve considered investing in this company, this article is for you.
Starlink is growing in leaps and bounds; every day, the company is venturing into new frontiers.
Hence, buying the company’s stock and being part of its success makes sense.
But how do you buy Starlink stock? Learn how to invest in Starlink from this detailed guide.
Can You Buy Starlink Stocks?
Starlink stocks would be a worthwhile investment. Unfortunately, the company hasn’t yet announced an IPO; hence, you cannot buy the ISP’s stocks.
So, who currently finances the company? Most of the funding has been from the company’s mother firm, SpaceX, owned by billionaire Elon Musk.
SpaceX has often received funding from venture capital entities such as the following:
- Alphabet
- Draper Fisher Jurvetson
- Founders Fund
However, suffice to say that this funding has been private, as there hasn’t been a public offer for SpaceX or Starlink.
Reasons to Invest in Starlink
Display of Stock Market Quotes.
While it’s impossible to invest in Starlink currently, there are tons of reasons why many consider it an investment for the future.
Easy Expansion
Starlink is Available even in Rural Africa.
Starlink is a satellite internet company and thus easy to access anywhere as long as there’s coverage.
Such extensive use and expansion is impossible for internet service alternatives like cable and fiber.
Hence, being a viable option for rural locations, Starlink’s uptake is expected to increase significantly.
Also, the internet service’s resilience to bad weather guarantees its reliability.
These factors mean the company is projected to grow exponentially, making it a huge investment.
Pairing with SpaceX
Starlink Satellite Launch by SpaceX.
Exploration company SpaceX owns and supports Starlink. The ISP firm utilizes the numerous SpaceX’s low earth orbit satellites (2000+) to deliver reliable and fast internet.
SpaceX continually launches satellites into space, meaning internet speeds are set to improve further.
Also, this means there’s likely to be significantly limited interruptions, such as downtimes.
These aspects position Starlink as likely to dominate the internet services scene for decades. Hence, picking it as a viable investment opportunity is sensible.
SpaceX Government Subsidies
Starlink Benefits from Government Subsidies.
Starlink’s parent company, SpaceX, has received government support in space exploration works.
Starlink is also set to benefit from subsidies to provide broadband connection to unserved areas in the US.
If successful in their $885.5 million government funding bid, Starlink will undoubtedly invest in more infrastructure.
This is a great sign for prospective investors in the company as it ensures they are buying a well-established firm.
Reasons to avoid Starlink
Owning part of Starlink is undoubtedly every investor’s dream. However, there are some reasons you shouldn’t rush into buying its stocks once they announce an IPO.
Financial Sustainability Concerns
Starlink faces financial uncertainty.
Starlink’s CEO Elon Musk recently raised concerns about the company’s sustainability, claiming they need quite a substantive funding to survive.
On average, Musk said they need a $30 million injection annually to remain afloat.
The firm spends double the amount it sells the Starlink kit, which retails at $500.
Hence, they can only continue such an expenditure with funding from the government and well-wishers.
Service Downtime
Poor Internet Connection.
Starlink, a satellite internet company, doesn’t guarantee the reliability of other broadband options like fiber and 5G.
A service downtime is inevitable when the Starlink dish has obstructions in its vicinity.
With the unprecedented downtimes, customers may opt for more reliable alternatives.
This means Starlink is not so dependable, which could turn away corporates who need a strong connection. Subsequently, this will also affect the stock valuation.
Pollution and Astronomy Work Interruption
SpaceX rocket launch.
There have been concerns about the Starlink satellite launch contributing to space debris, a pollution issue.
Moreover, as the firm continues to send more and more satellites into space, there are worries this may affect the work of astronomers.
Poor Customer Service
Starlink has unreliable customer service.
Starlink prides itself in its self-installation kit, which means you don’t require a technician to set up the internet.
However, this shouldn’t be an excuse for its poor to nearly non-existent customer service associated with the firm.
Communication with the company is arduous; they should improve to satisfy customers.
How to buy Starlink Stock?
Stock Brokers in the Market.
Is it still possible to buy Starlink stocks despite the company not being listed on the market? There are two ways you can try this out. Let’s see them in detail.
Accredited Investor
Companies such as Equitybee allow accredited investors to buy stocks of firms that haven’t yet gone public.
Hence, you should sign up first as an accredited investor to claim a stake in a private firm such as Starlink.
You’re entitled to a profit percentage if a company listed with Equitybee sells.
Unfortunately, Starlink is not registered with Equitybee, so you cannot buy its stock through this avenue.
However, there are other alternatives on Equitybee you may find interesting, such as Klarna, Blue Origin, and Plaid.
So, consider investing in them while waiting for Starlink to go public.
As a Retail Investor
The other option is, although this is only viable for publicly traded companies.
So, you cannot outright buy Starlink as a retail investor. Nonetheless, there are other ways out of this fix.
You can still invest in other firms owned/related to Starlink and SpaceX CEO Elon Musk that have gone public.
These include companies like PayPal (which he once owned) and Tesla. Also, investing in the major SpaceX investors is like an indirect investment in Starlink.
Among such companies are Fidelity and Bank of America. Finally, you can invest in Starlink partners already trading in the stock market, such as Shift4 Payments.
Conclusion
Have you been looking to own a part of Starlink? The bad news is that the company is still privately owned, so its shares are unavailable.
But you can still invest in its partners or other companies associated with Elon doing well in the stock market.
We’ve provided you with the upsides and downsides of investing in Starlink.
Hence, should the company go public in the future, which is highly possible, you are now well set to invest in it.