Starlink's subscriber base doubled to 12 million as connectivity revenue jumped 66%, yet SpaceX's $2 trillion valuation suggests investors should remain cautious despite the rapid operational expansion.
Starlink subscriber growth accelerated to 12 million, with connectivity revenue up 66% year over year, but the stock's near $2 trillion market value may already price in years of sustained high growth.
SpaceX's Starlink service reached 12 million subscribers in June, doubling its user base year-over-year. Despite a decline in average revenue per user to $66, the connectivity segment reported a 79% surge in operating income to $1.7 billion. Analysts project the service could reach 24 million subscribers by late 2027, though the company's $2 trillion valuation may already reflect this aggressive growth trajectory.
Growth is fueled by consistent satellite deployment, including the rollout of next-generation V3 satellites, and a strategy of lowering pricing to capture broader market share.
Yes, the connectivity segment is a primary profit engine for SpaceX, with operating margins reaching 39% in the second quarter.