Starship

Nov 28, 2023

––% 'Big If True:' Elon Musk Playfully Reacts As Cathie Wood's Ark Sees $10B Market For SpaceX's Starlink, $270B Revenue Opportunity For Starship November 28, 2023 4:06 AM | 2 min read Loading... Loading... Cathie Wood‘s Ark Investment Management announced on Monday that it envisions  SpaceX‘s Starlink , the satellite internet venture, having an annual addressable market of about $10 billion in the U.S. alone. Ark’s Take On Starlink: The asset management firm considers Starlink as the most significant near-term opportunity for SpaceX. According to its calculations, serving the approximately 42 million Americans without broadband access, with each household averaging 2.6 individuals and a $50 monthly broadband bill, would make Starlink’s addressable market around $10 billion per year. Ark also notes substantial market potential outside the U.S. due to the sizable population lacking consistent internet access. Overall, Ark anticipates the satellite connectivity market approaching $100 billion annually in the medium term, with Starlink capturing a substantial share. "ARK believes SpaceX has no competitor capable of rocket reusability; All-in, we believe that the satellite connectivity market could approach $100 billion annually over the medium term, and Starlink is well-placed… pic.twitter.com/DH4cUH93hG Other Business Segments: Despite Starlink’s prominence, SpaceX engages in other business segments, including providing launch services through its rockets. Ark emphasizes SpaceX’s dominance in reusability, a factor contributing to lower launch costs that are challenging for competitors to match. If Starship, SpaceX’s future launch vehicle for lunar and Martian missions, achieves full reusability, Ark estimates a significant $270 billion annual revenue opportunity for point-to-point transportation. Loading... Loading... Musk’s Response: SpaceX CEO Elon Musk responded to Ark’s analysis with a humorous “Big if true” comment, accompanied by a laughing emoji. Musk didn’t provide further clarification, leaving room for interpretation. Why It Matters: In September, SpaceX announced on Starlink’s official X handle that the service is available in over 60 countries with more than 2 million active customers. SpaceX has launched approximately 5,000 Starlink satellites into orbit. In early November, Musk revealed that Starlink had achieved breakeven cash flow, sparking speculation  about a potential IPO  for the segment. SpaceX reported a small  profit of $55 millio n in the first quarter of 2023. The space venture is a part of the total ARK Venture Fund. Check out more of Benzinga’s Future Of Mobility coverage by  following this link .