According to Payload Space researcher, by early 2023, Starlink, SpaceX’s satellite internet venture, had emerged as its primary revenue source, generating $4.2 billion in sales compared to $3.5 billion from rocket launch fees. Looking ahead, forecasts indicated that by the end of 2024, Starlink revenue would reach $6.8 billion, surpassing launch revenue at $5.5 billion. Recent reports suggest that Starlink’s actual 2024 revenue might have hit $7.7 billion, representing an impressive 83% year-over-year growth. This growth is attributed to increased U.S. defense spending on Starlink contracts, including the Starshield project, and the continued expansion of Starlink’s commercial business. Projections for 2025 anticipate 7.8 million customers worldwide and $11.8 billion in sales for Starlink.
While Starlink has experienced rapid subscriber growth, its revenue growth has not matched proportionally due to lower pricing in international markets. For instance, Starlink subscriptions are significantly cheaper outside the U.S., ranging from $41 in France to $24 in Zambia. As SpaceX globalizes its services, investors should consider potential slower revenue growth despite increasing subscriber numbers, especially as the company moves towards a future IPO. It is essential for investors to stay informed about these trends to make informed decisions regarding potential investments in Starlink.
Investors should approach it like any other stock, placing more emphasis on its earnings growth rather than just on subscriber increases. If you’re wondering where to put $1,000 right now, it’s wise to heed the advice of our analyst team. Stock Advisor has a remarkable total average return of 903%, significantly outperforming the S&P 500’s 173% return. Recently, they unveiled their top 10 stock picks for investors. To discover these recommendations, check out the latest list. Remember, all returns mentioned are accurate as of December 30, 2024. The Motley Fool upholds a strict disclosure policy.
