How to invest in Starlink? Starlink is, without a doubt, the market leader in satellite internet services.
So it makes great economic sense to have a piece of the company by buying its shares.
While it’s yet to go public, it’s imperative to understand how to invest in Starlink’s IPO as we await its imminent announcement.
Hence for this and more on how to invest in Starlink stocks, be our guest today.
Table of Contents
- What Is an IPO?
- Why do people want to invest in Starlink?
- How Does Starlink Make Money？
- 5 Steps to Invest in Starlink
- Other Ways To Invest in Satellite Internet Besides Starlink Stock
What Is an IPO?
Female hands hold a phone with IPO stocks purchase app.
An initial public offer (IPO) is a business practice that an entity uses to raise money by offering the public a chance to own part of the company.
A subscriber owns a share; therefore, anyone with a company’s shares is its shareholder.
Companies make IPOs via an investment bank which, in principle, assesses its value and gives the ideal price for each stock.
Starlink plans to have an IPOia, its holding company’s CEO, Elon Musk.
Nonetheless, its announcement is subject to the company breaking even first.
Therefore, although we’re educating you on how to invest in Starlink now, an IPO may take a couple of years to materialize.
Why do people want to invest in Starlink?
Going Public Stock Market Initial Offering (IPO)
It is yet early to think of directly investing in Starlink, yet people are excited about owning a piece of the company.
So why is Starlink a viable investment?
- Starlink’s infrastructure allows use even in rural areas. Hence, it’s a dependable internet option that users can always bank on. Moreover, it is more reliable than cable internet, thus making it a worthwhile long-term option.
- Also, Starlink is a subsidiary of the exploration firm SpaceX. It has more satellites and technology than other satellite internet providers. Users can expect top speeds and relatively lower latency than other internet options.
- Lastly, Starlink, under SpaceX, is enjoying some subsidies from the US government. It means it can continue offering its services to more users.
How Does Starlink Make Money？
Ipo or Initial Public Offering word and chart.
Starlink is an Internet Service Provider (ISP), meaning that the company generates revenue by granting internet connectivity to its subscribers.
For the basic package available to residential users, Starlink charges $99 per month. But first, a subscriber must invest in Starlink’s kit for $599. This one-time fee is refundable if a user quits the ISP’s service.
There’s no doubt about the expected profitability of Starlink, as the company expects to make annual revenue of $30 to 50 billion after it breaks even. \
Therefore, it is a viable investment, and investors can expect good financial results.
5 Steps to Invest in Starlink
Initial Public Offering IPO Stock Market.
Here are the five basic steps to invest in Starlink once it goes public.
Choose a Broker Firm
You can only buy shares via a brokerage company. Also, given numerous brokers, you must settle on the one who shares your investment strategy and needs.
Hence, take time to evaluate the available brokers.
Create A Trading Account
Next, you need to open a trading account with your stock broker.
Noteworthy, if you own other stocks via a dependable broker, you do not need to open another account.
For a new account, you’ll need to follow the due activation process for new accounts.
Suppose Starlink announces an IP, and you buy their stocks. You can check out the performance of your portfolio from the trading account.
Deposit Money to Buy Stocks
Thirdly, you need cash in your account to purchase Starlink or other stocks.
Different brokers have various cash deposit methods. Hence, you need to check if the broker offers payment methods you can access.
Also, notably, you’ll need enough money to cover the cost of the stocks you want to purchase and the brokerage fee.
Choose Starlink Stocks
We’re assuming that Starlink has already announced an IPO and their shares are already on the market.
Search for Starlink stocks via the company’s symbol.
Next, consider if their sale price is worthwhile, and if you’re okay with it, you can continue with the purchase.
Select your Ideal Order Type
How do you wish to go about buying the Starlink stock?
There are three main options, as we’ll highlight below.
- Stop-loss order – This option prevents you from purchasing shares at a higher price than your limit. Hence, the system will prevent purchases above a particular upper threshold once you activate it.
- Limit orders– Are you looking to purchase Starlink shares only at a specific price? Then choose the limit order option.
- Market Price order– This option ensures you can buy stocks at the available listing price. It is, therefore, immediate and viable for those who don’t know much about the current price.
Other Ways To Invest in Satellite Internet Besides Starlink Stock
You cannot invest in Starlink as they have not announced an IPO. But there are three main options you can go for, as we’ll outline below.
Consider buying a stake in Starlink partners such as Shift4 Payments, who have a five-year deal with the company.
Nonetheless, you first need to create an account with a stockbroker, as highlighted above.
Even if you cannot own Starlink at the moment, you have an opportunity to have a stake in SpaceX’s sister company,
Tesla. The company deal with the manufacture of cars with zero emissions.
Starlink Pre-IPO Trading
Check out firms such EquityZen and IG that deal with pre-IPO trading. You can trade in SpaceX before they go public through such stock brokers. But you won’t buy the company’s actual stocks.
Of all companies, Elon Musk owns, only Tesla has gone public.
Nonetheless, Starlink will soon go public, and you’ll have a chance to own part of the company.
Above, we’ve elucidated the process to own SpaceX shares once they go public.
But still, you can have a stake in the company through the other options we’ve highlighted above.