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.
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.
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 million in the first quarter of 2023.
The space venture is a part of the total ARK Venture Fund.
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