SpaceX is way ahead of competitors with Starlink, but growth is harder heading into IPO
·2 min read
Compiled by KHAO Editorial
— aggregated from 12 sources.
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As investors line up to buy SpaceX stock in the largest IPO on record, about the only real business they have to evaluate is Starlink, the company's satellite internet division.
Key facts
For all of last year, ARPU slid to $81 from $91 in 2024 and $99 in 2023
According to its IPO filings, SpaceX has accumulated a deficit of $41.3 billion since it was founded in 2002, and recorded an operating loss of $1.9 billion in the first quarter
His firm initiated coverage of SpaceX with a $165 price target, above the $135 planned IPO price
Even as the number of subscribers doubled in the first quarter, operating income barely budged, going from $1.03 billion to $1.19 billion
Summary
Meanwhile, the company's space, and artificial intelligence segments generated a combined $1.4 billion in first-quarter revenue, while their operating losses totaled $3.1 billion in that stretch. But even for Starlink, there are significant hurdles to expansion, making it harder for prospective investors to determine a reasonable price to pay for shares. SpaceX is relying on its Starship rockets, the largest ever built or launched, to begin flying and deploying its new V3 satellites to massively expand their Starlink service. According to its IPO filings, SpaceX has accumulated a deficit of $41.3 billion since it was founded in 2002, and recorded an operating loss of $1.9 billion in the first quarter.