Cathie Wood: Starlink's Cost Cutting Paves Way for Global Internet Access

Cathie Wood, CEO of ARK Invest, has praised SpaceX's Starlink for its significant reduction in satellite internet costs, paving the way for global access to high-speed internet. As SpaceX prepares to launch 10 model Starlink satellites on its upcoming Starship test flight, Wood highlighted the company's progress in reducing costs through its Starlink program.

Wood, popular for leading ARK Innovation ETF ARKK, commented as SpaceX gets ready for the launch, which marks the first time Starship will carry a payload after six previous test flights. ARK's Director of Research for Autonomous Technology, Sam Korus, provided context by comparing SpaceX's costs to traditional satellite providers. Viasat Inc.'s VSAT "Viasat 3 was $650,000 per Gbps," Korus noted on X, formerly Twitter. His analysis suggests Starlink's cost per subscriber could drop to approximately $5 when accounting for launch and satellite expenses.



The cost reduction aligns with Wright's Law, which predicts decreasing production costs as manufacturing experience increases. The trend is particularly significant given SpaceX's planned transition to using Starship for satellite deployment, potentially further reducing launch costs. SpaceX's advancement in satellite technology comes as the company maintains its position as the largest holding in ARK's Venture Fund, representing 12.7% of the portfolio.

The upcoming Starship test flight aims to demonstrate both payload deployment capabilities and booster recovery at the launch pad in Starbase, Texas. This development is crucial for NASA's lunar missions and CEO Musk's broader vision of Mars colonization. SpaceX's latest reported private market valuation exceeds $250 billion, with shares reportedly trading at $135 in recent tender offers, underscoring investor confidence in the company's satellite internet strategy and broader space transportation goals.

In conclusion, Cathie Wood's praise for SpaceX's Starlink highlights the significant cost reductions achieved by the satellite internet service, paving the way for global access to high-speed internet. As SpaceX continues to innovate and expand its satellite constellation, investors can expect Starlink to play a crucial role in the company's growth and success.