Another day, another tweet from Elon Musk stirring up the stock market. Today, investors are celebrating his plans to bring Starlink, a satellite internet service, public. So what do you need to know about the Starlink IPO news?
To start, investors should make sure they understand the basics. Musk is perhaps most notable for his role as CEO at Tesla (NASDAQ:TSLA), the electric vehicle leader. However, he also heads up SpaceX, a next-generation space company. One of the SpaceX projects is Starlink, a so-called constellation of small satellites that provide internet access.
With that in mind, here is what else you need to know about the company and the Starlink IPO news:
- Right now, Starlink is actually available to order via the company website.
- However, there is a limit to how many customers can access it in each coverage area.
- These sales are part of its domestic and international beta tests, although it is aiming to have “near global coverage” by the end of 2021.
- The company also says that users can expect data speeds and latency to vary during the beta test.
- It also warns that there may be periods of no connectivity.
- However, as it launches more satellites and installs more ground stations, this will improve.
- Although it markets an easy-to-use kit for consumers, larger-scale customers like the military are interested in Starlink.
- Investors should know that the latest Starlink IPO news comes from a Twitter (NYSE:TWTR) thread.
- There, Musk said that there will be an IPO once they can “predict cash flow reasonably well.”
- This is not the first talk of a Starlink IPO.
- Previously, SpaceX COO Gwynne Shotwell said Starlink is the ideal part of the business to take public.
What to Know About the Latest Starlink IPO News
So where do things stand? At an immediate level, a Starlink IPO seems rather exciting to investors, especially given the latest interest in space stocks. The company promises to innovate communications through small satellites, and ultimately make everything more accessible. It also would be spinning off from SpaceX, which continues to hit milestones for a private space company. Plus, with Jeff Bezos stepping down from Amazon (NASDAQ:AMZN) to focus on projects like his Blue Origin, the pressure is on for SpaceX and all other players.
However, investors should pay attention to that free cash flow note from Musk. Right now, Starlink has about 10,000 beta users, and the system sells for $600. Musk has said that the tech needs to improve and the costs need to come down, especially as he shoots for $50 billion in annual revenue. However, that is still a work in progress. As one expert told Business Insider, the company may need 3 million subscribers to get the project to pay for itself.
Clearly, 10,000 is a far cry from 3 million. But investors should know by now that Musk works to deliver. He knows the road ahead, and Starlink is tracking progress in terms of satellite launches and cost improvements. By 2027, it hopes to fly 42,000 satellites.
Keep an eye on the Starlink IPO news. It is unclear exactly when its public debut will occur, but it definitely deserves to be on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
View more information: https://investorplace.com/2021/02/starlink-ipo-news-elon-musk-satellite-internet-spacex-space-stocks/