Retire Before Dad

    • Start!
      • About
      • RBD Story
      • Featured on…
      • Archive
      • Portfolio
      • Guest Post Policy
      • Contact
      • Terms & Privacy Policy
      • Home
    • IPOs
    • Reviews
      • Sure Dividend Review
      • Yieldstreet Review
      • Fundrise Review
      • M1 Finance Review
      • Motley Fool Stock Advisor
      • Motley Fool Rule Breakers
      • AcreTrader Review
      • Masterworks Review
      • Roofstock Review
      • PeerStreet Review
      • EquityMultiple Review
      • Virginia 529 Review
    • Resources
      • Passive Income Ideas
      • Best Brokers for Dividends
      • Dividend Aristocrats
      • Debt-Free S&P 500 Stocks
      • Best Real Estate Crowdfunding Platforms
      • Affiliate Programs And Blogging
      • How To Start An Online Business
    • Recommended
      • Net Worth Calculator
      • Tools
      • Blogroll
      • Dads Blog Money
    • Best Cards
      • Travel Rewards
      • Cash Back
      • Small Business
      • Airline Rewards
      • Hotel Rewards
    This page may contain links to our partners. RBD may be compensated when a link is clicked. See the full disclosure here.

    Starlink Stock – Prepare to Invest in the IPO Spinoff

    SpaceX Logo from Starlink website. Starlink stock and IPO are not yet available, but possibly coming in a few years. Learn how to invest in Starlink stock if the company spins off of SpaceX for an IPO. Get access to select IPOs with Tradestation, which offers free IPO access to all customers. Or browse pre-IPO platforms for early equity opportunities.


    Table of Contents

    • Latest Starlink Stock IPO News
    • What is Starlink?
    • Why Would Starlink Stock Spinoff from SpaceX?
    • What is the Starlink IPO Date?
    • How to Invest in Starlink Stock (Hint: You Can’t)
    • 6 Ways to Prepare to Invest in a Starlink IPO Spinoff
    • Conclusion – You Cannot Buy SpaceX or Starlink Stock, Only Prepare
    • Starlink Stock News Archive

    Latest Starlink Stock IPO News

    04/25/2022: Starlink to provide Wi-Fi on Hawaiian Airlines flights as a free service for passengers
    03/21/2022: Does Musk Want to Merge Tesla, SpaceX and The Boring Company?
    03/21/2022: Starlink sees the in-flight internet market as ripe for an overhaul
    02/26/2022: Ukraine Official Asks Elon Musk for Starlink Stations Amid Russian Invasion
    02/02/2022: SpaceX rolls outs ‘premium’ Starlink satellite internet tier at $500/month
    12/15/2021: Elon Musk: ‘I’ll be surprised if we’re not landing on Mars within five years’
    12/07/2021: The Economist: Satellite constellations are alarming astronomers
    10/08/2021: SpaceX hits $100 billion valuation after secondary share sale
    10/07/2021: US Nationwide Starlink Rollout Is Coming This Month
    Older news…

    What is Starlink?

    Starlink is a business subsidiary of the private company SpaceX. SpaceX intends to build a low earth orbit satellite constellation that provides internet access to the world. 

    The web of satellites known as Starlink will connect to ground receivers, making it possible to provide internet at competitive prices, especially to underserved global communities. Internet speeds are expected to be 50Mbs to 150Mbs. 

    Customers will include governments and consumers. As of late 2020, nearly 1,000 satellites have been launched into orbit, and the service’s testing has commenced. The satellites ride the Falcon 9 rocket for insertion into orbit.

    Twelve thousand satellites are expected to orbit Earth during the first phase, with the potential to increase that number to 42,000. SpaceX estimates the Starlink business could generate $30 billion by 2025. 

    Why Would Starlink Stock Spinoff from SpaceX?

    Elon Musk has wild ambitions.

    He owns a company called Neuralink that aims to merge artificial intelligence and the human brain. 

    He created a construction tunneling startup called The Boring Company to take transportation underground.

    But perhaps his most aspiring goal of all is to colonize Mars. To do so, he needs lots more money than he already has. 

    SpaceX serves as both a lower-cost launch service for governments and private companies and a platform for Elon to design rockets for Mars. The company profits from launch services, but it will need much more money to colonize Mars. 

    As a private company, internal management and the Board of Directors determine what to do with earnings. But if SpaceX were to become a publicly-traded company, it would have to answer to shareowners.

    Though a SpaceX IPO would surely raise billions, its goal to colonize Mars would unlikely appeal to investors because it will be a cash drain. Investors want to receive profits through dividends or capital appreciation. 

    Going to Mars will not be a business venture, at least not at first. It’s a humanitarian mission to hedge against Earth’s inevitable demise. 

    What Elon Musk needs is a cash cow to fund his vision. Enter Starlink. 

    Starlink has the potential to generate billions of dollars of revenue. Once the network of satellites is in place, revenues should outpace maintenance costs, generating significant profits. 

    So why not keep Starlink with SpaceX?

    Spinning off Starlink to the public markets would provide a capital raising vehicle for Starlink to invest in growth. As we’ve seen with Tesla, when the stock surges, the company can issue additional shares to raise extra capital. 

    Not only could it raise significant money in a Starlink IPO, but SpaceX would also likely retain a large ownership percent of the new company in a tailored share class. As Starlink stock rises, SpaceX has an asset that grows in value, allowing it to sell shares or receive preferred payments. 

    If indeed Starlink could generate $30 billion in revenue as another Elon Musk company, fanboys and investors would salivate to own it, driving up the stock price. 

    As of October 2020, Tesla generates $28 billion in annual revenue. The stock market cap is nearly $400 billion. If SpaceX could retain 50% or more of Starlink stock, it could raise hundreds of billions to pursue its primary objective.

    What is the Starlink IPO Date?

    The Starlink IPO is likely several years away. But as reported by Bloomberg in February 2020, SpaceX President Gwynne Shotwell said:

    Right now, we are a private company, but Starlink is the right kind of business that we can go ahead and take public. That particular piece is an element of the business that we are likely to spin out and go public.

    In September 2020, Musk confirmed this likelihood on Twitter and indicated that retail investors might be able to participate:

    We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable. Public market does *not* like erratic cash flow haha. I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.

    — Elon Musk (@elonmusk) September 28, 2020

    But considering Elon’s urgency to reach Mars to make humans a multi-planet species, I wouldn’t be surprised to see a Starlink IPO in the works shortly after the business is operational, or at least post-revenue. 

    For the Starlink IPO to favor “small retail investors,” they’d either need to make it a direct listing or offer shares to customers or other affiliates via a directed share program (usually not disclosed until the SEC S-1 filing is public). 

    How to Invest in Starlink Stock (Hint: You Can’t)

    You cannot buy SpaceX stock or Starlink stock today — SpaceX is a private company, and Starlink is a business run by SpaceX.

    According to CNBC, SpaceX plans to spin off Starlink stock in the coming years. Eventually. 

    Therefore, the only current way to own a tiny sliver of SpaceX Starlink is to own Alphabet (GOOG) shares, Google’s parent company.

    Along with Fidelity(private), Google announced a $1 billion investment in SpaceX in January 2016. The investment amounted to 10% ownership of the company ($10 billion valuation) at the time.

    SpaceX has endured several additional venture rounds since then, and in 2020, it’s estimated to be valued at around $44 billion, according to CNBC. If Google and Fidelity held onto their original shares, the ownership stake could be worth up to $4.4 billion, depending on share dilution.

    Owning Alphabet means you would technically own a very tiny portion of SpaceX. But not one large enough to validate an investment decision. 

    In the event of a Starlink spinoff, Alphabet would presumably retain some ownership of Starlink.

    You can buy shares of Alphabet through any low-cost online brokers. For long-term buy-and-hold investors, I recommend M1 Finance (review). 

    6 Ways to Prepare to Invest in a Starlink IPO Spinoff

    High-profile IPOs, to be clear, are usually challenging to invest in until after the public offering is complete. Meaning, it’s hard to get shares before the IPO that spike once the stock begins trading. 

    For most big IPOs, the investment banks underwriting the deal offer shares to its wealthiest customers (most assets under management). That’s because often, the stock price spikes after the IPO, making their best customers even wealthier. 

    So unless you’re wealthy and have investments with one of the big banks or brokers with IPO connections, your options are limited.

    But not zero. 

    Anyone can buy the stock after trading opens. So if you’re patient, you can own the stock when it becomes public. Google’s stock jumped in price on the first day of trading but soared for many years afterward. 

    The Uber IPO, on the other hand, flopped. The stock price fell from the IPO and took months to recover. IPO investors lost money!

    Considering this, here are a few things you can do to prepare for Starlink stock to begin trading if it ever does. 

    1. Own Tesla Stock

    Long-time Tesla stock owner may have early access to the Starlink IPO spinoff from SpaceX. 

    One June 24th, 2021, Musk tweeting the following in response to a question on Twitter:

    At least a few years before Starlink revenue is reasonably predictable. Going public sooner than that would be very painful. Will do my best to give long-term Tesla shareholders preference.

    — Elon Musk (@elonmusk) June 24, 2021

    Though certainly not guaranteed, Musk seems to be open to potentially offering IPO shares to Tesla shareholders. 

    2. Join the Email List

    Go to Starlink.com and join the email list to get updates on Starlink news and service availability in your area. Also, consider subscribing to the SpaceX channel on Youtube to learn more. 

    Joining the email is the best way to stay informed with official information. 

    3. Become a Customer

    Once SpaceX begins selling internet access to the wider public, become a customer. Signing up for the service will get you on their customer list, at a minimum. You’ll become familiar with the service and decide for yourself if the product is a worthy investment consideration. 

    As we’ve seen with previous IPOs such as GoPro, LendingClub, and Uber, early customers, and affiliates sometimes receive access to IPO shares through a direct share program. 

    Direct share programs are usually kept secret until the company releases the S-1 Filing to the public. They enable the company to offer preferred IPO share access, generally to affiliates and family members. 

    For Uber, drivers who logged a certain number of miles received shares. For LendingClub, it was their note investors. For GoPro, anyone on their email list could apply to acquire shares. 

    We have no idea at this stage if this would be in the cards for a Starlink stock IPO. But if there is a viable preferential treatment for “small retail investors,” early customers would seem to make the most sense because you can’t offer IPO shares to everyone. 

    4. Wait Patiently and Invest After the IPO

    If it ever becomes available, your best chance to own Starlink stock is to wait for the IPO buy the stock through a no-fee online brokerage account.

    New investors can open an account well before the IPO, then place your first trade in another company to learn how to buy shares.

    I recommend starting with a company you know well. If you like Starbucks, for example, buy Starbucks stock.

    So what is the best online brokerage for buying stock?

    As an individual investor, you’ll want to open an account with a commission-free broker. That way, you’ll invest most of your money instead of waste it on fees.

    I’ll go over one of my favorites below. It has very reasonable fees and will make it easy to buy Starlink stock once trading begins.

    What is the Best Online Broker to Buy Stock?

    For investors looking to participate in IPOs, TradeStation and Webull offer IPO investing to customers (more below). However, you’re never guaranteed a share allocation and most high-demand IPO will not be available. 

    Long-term investors may prefer an online broker that’s better for dollar cost averaging and dividend reinvestment. 

    I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable and robust, no-fee online broker for beginner to intermediate investors. It’s easy to get started.

    As your investing skills and portfolio mature, M1 is one of the best platforms to scale.

    Investing in stocks is 100% free on the platform. They also offer an integrated checking account and low borrowing rates. Read my complete M1 Finance review here. 

    M1 Finance does not offer IPO access. But it’s my favorite for every day investing. 

    The platform is more intuitive than old school brokers because it’s built on a modern technology platform. You create portfolio “pies” that contains all the stocks and ETFs you want to own and in what percentages. 

    Learn More about M1 Finance

    5. Open a Brokerage Account with Free IPO Access

    Ambitious investors may attempt to position themselves to invest in the Starlink IPO if and when it arrives. Most retail investors will not get access.

    The wealthiest clients at the top investment banks will get IPO shares in the hottest deals.

    Your chances of getting IPO shares depends on four factors:

    • IPO demand
    • Your broker and eligibility
    • Your assets under management at the broker
    • Propensity to flip shares

    As IPO demand increases, the chances of receiving IPO shares decreases. Therefore, the IPOs that are most interesting to the masses are the hardest to access. 

    Lower-demand IPOs may be available to retail investors who are customers at participating brokers. 

    What are the Best Online Brokers for IPO Investing?

    For an extensive list of IPO-friendly online brokers and their eligibility, check out this page.

    Wealthy customers ($1 million+ accounts) at Fidelity, TD Ameritrade, and Schwab may have a shot at some IPOs, depending on demand. 

    TradeStation and Webull are the best options for investors with less than $250,000. Both give limited access to lower-demand IPOs and secondary offerings through a partnership with ClickIPO, an IPO investing app.

    Joining a broker that offers access to IPOs does not guarantee a share allocation, especially in high-demand IPOs. You are probably better off waiting for the company to start trading after the IPO. 

    Click here to download the free 15-page eBook, How to Invest in IPOs – A Fundamental Guide for Ordinary Investors.

    6. Monitor Pre-IPO Markets for Available Shares

    Another option is to try to acquire shares of SpaceX on a pre-IPO marketplace.  

    Founders, early employees, and investors often find themselves in a difficult predicament. They own valuable shares of a company that doesn’t trade publicly. 

    These shareholders might have multi-million dollar net worth’s because of their stock holdings, but the stock is not liquid because it doesn’t trade on an exchange. 

    A few platforms have evolved to gives these individuals a way to liquidate their holdings before the IPO.

    Some of the most prominent include Linqto, EquityZen and Forge.

    These sites bring liquidity to an otherwise illiquid asset. Accredited investors may join these sites and attempt to buy shares of pre-IPO companies when they become available. 

    The shares are only offered to accredited investors because their financials are not publicly filed with regulators yet, increasing investors’ risk.

    For high-profile companies, demand is high, lowering your chances of acquiring shares, even if you’re accredited. So I’d approach this strategy to acquire SpaceX shares, knowing there will be others in line to do the same. 

    Conclusion – You Cannot Buy SpaceX or Starlink Stock, Only Prepare

    It won’t be easy for ordinary investors to acquire pre-IPO shares of SpaceX stock or Starlink stock. If you’re determined, follow the pre-IPO marketplaces and pay attention to any offerings. You are required to be an accredited investor to invest this way. 

    Otherwise, you’ll need to wait for the IPO date to buy shares. 

    But that’s not necessarily a reason to be disappointed. Google’s shares rose 18% on the day of its IPO. Many people probably sold that day. Had they held for the next decade, their holdings would have been up 1,000%.

    When the Starlink IPO is near, please perform due diligence on the SEC S-1 filing and don’t buy Starlink stock with money you can’t afford to lose.

    Check out this list of the hottest upcoming IPOs for more investment ideas.\

    Read more: Blue Origin Stock – Will There be an IPO?

    Starlink Stock News Archive

    09/08/2021: Who is Starlink really for?
    08/24/2021: Elon Musk says SpaceX has shipped 100,000 Starlink terminals
    08/09/2021: SpaceX is buying satellite data start-up Swarm
    08/03/2021: SpaceX says Starlink has about 90,000 users as the internet service gains subs
    07/12/2021: With a new SpaceX Starlink factory, Austin could reach new heights in tech
    06/24/2021: Elon Musk says Starlink will go public when its cash flow is more predictable
    06/16/2021: Elon Musk’s Starlink is Ready to Offer Satellite Internet for Commercial Flights
    05/04/2021: Over 500,000 orders for Starlink satellite internet service received to date
    04/06/2021: SpaceX does not plan to add ‘tiered pricing’ for Starlink satellite internet service
    03/02/2021: SpaceX is building a factory in Austin TX for Starlink satellite internet equipment
    02/25/2021: How Starlink Is About To Disrupt The Telecommunications Sector
    02/22/2021: Musk says SpaceX ‘will double’ Starlink satellite internet speeds later this year
    02/17/2021: SpaceX Funding Round at $74 Billion Valuation Was Led by Sequoia
    02/16/2021: Elon Musk’s SpaceX raised $850 million, jumping valuation to about $74 billion
    02/08/2021: SpaceX opens up Starlink internet preorders around the world
    02/04/2021: SpaceX says its Starlink satellite internet service now has over 10,000 users
    01/11/2021: Elon Musk’s Starlink internet satellite service has been approved in the UK
    12/24/2020: Elon Musk said that combining SpaceX, Tesla, Neuralink, and Boring under a megacorporation called ‘X’ would be a ‘good idea’
    12/14/2020: SpaceX in Talks for New Funds and $92 Billion Valuation: Report
    12/07/2020: SpaceX’s Starlink wins nearly $900 million in FCC subsidies to bring internet to rural areas
    11/02/2020: SpaceX’s Starlink internet public beta is giving some users blistering download speeds
    10/27/2020: SpaceX’s Starlink satellite internet service is priced at $99 per month
    10/27/2020: Dozens of families in rural Texas will get SpaceX’s Starlink satellite internet for free
    10/22/2020: Morgan Stanley expects SpaceX will be a $100 billion company 
    02/06/2020: There could be a new Elon Musk stock for investors to bet on: SpaceX’s Starlink

    Disclosures: The author is long SBUX, TSLA. This web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs.

    Please Share!

    • Click to share on Twitter (Opens in new window)
    • Click to share on Facebook (Opens in new window)
    • Click to share on Reddit (Opens in new window)
    • Click to share on Pinterest (Opens in new window)
    • Click to share on LinkedIn (Opens in new window)
    • Click to email this to a friend (Opens in new window)

    Favorite tools and investment services right now:

    Credible* - Now is an excellent time to refinance your mortgage and save. Credible makes it painless.

    Personal Capital - A free tool to track your net worth and analyze investments.

    M1 Finance - A top online broker for long-term investors and dividend reinvestment (review)

    Fundrise - The easiest way to invest in high-quality real estate with as little as $10 (review)

    *Advertising Disclosure: RBD partners with Credible which offers rate comparisons on many loan products, including mortgage refinances and student loans. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible. RBD is compensated for customer leads. Credible Operations, Inc., NMLS Number 1681276, not available in all states. 320 Blackwell Street, Suite 200 Durham, NC 27701.

    Services I Use Every Day

    Personal Banking: Wells Fargo
    Travel Credit: Chase Sapphire Preferred
    Primary Savings: Marcus
    Primary Broker: Fidelity
    DRIP Broker: M1 Finance
    Biz Banking: Wells Fargo
    Biz Credit: Chase Ink Business Preferred
    Net Worth Calculator: Personal Capital

    Home
    About
    Featured on
    Resources
    Website Terms/Privacy Policy/Full Disclaimer

    ADVERTISING DISCLOSURE: This website engages in affiliate marketing. This means that if you use an affiliate link to make a purchase, the website will receive a commission on that purchase. All efforts are made to ensure that affiliate links are disclosed in accordance with the FTC. Retire Before Dad has partnered with Cardratings for our coverage of credit card products. Retire Before Dad and CardRatings may receive a commission from card issuers. The Website uses Mediavine to manage all third-party advertising on the Website. This website is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and links to Amazon.com.

    Disclaimer

    Read the full Disclaimer policy here.

    Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. We have made every effort to ensure that all information on this website is accurate. We make no guarantees regarding the results that you will see from using the information provided on the website. We are individual investors, not financial advisors, tax professionals or investment professionals. All information on the site is provided for entertainment and informational purposes only and should not be considered advice. Do not make investment decisions based on the information provided on this website. This website may discuss topics related to finance and investing. The information provided on this websites is provided “as is” without any representations or warranties, express or implied. The website makes no representations or warranties in relation to the financial and investing information on the website. You must not rely on the information on the website as an alternative to advice from a certified public accountant or licensed financial planner. We assume no responsibility for errors or omissions that may appear in the website. You should never delay seeking financial advice, disregard financial advice, or discontinue professional financial services as a result of any information provided on the website.

    Copyright © 2022 Retire Before Dad · Custom site by Moonsteam Design

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.