SpaceX Dip Buyer Bets Starship Turns Starlink Into a Bigger Cash Cow

SpaceX (NASDAQ:SPCX) launched Starship’s first orbital flight on Monday, and one fund manager who bought during the post-IPO slump says the mission goes straight to the core of his bull case.

Jeff Kilburg, founder and CEO of KKM Financial, wrote in a CNBC op-ed that he added SpaceX to the Mango Growth ETF (NASDAQ:GARY) after shares slid under their $135 IPO price. The stock surged above $225 following its June debut, then sank to roughly $105. 

“When shares broke below the IPO price and some of that initial enthusiasm washed out, we saw our opportunity,” Kilburg wrote.

Starlink Rides Along

Monday’s Starship flight is carrying 26 next-generation Starlink V3 satellites. Larger, higher-capacity satellites sit at the center of Kilburg’s thesis.

“SpaceX is more than a rocket company,” he wrote. “The bigger opportunity is what those rockets allow it to build in orbit, particularly Starlink, its high-speed internet network.”

Subscribers Double

Starlink ended the second quarter with 12 million subscribers, double the prior-year total. The surge lifted SpaceX’s Connectivity revenue 66% to $4.3 billion.

The network has about 11,000 active satellites, compared with roughly 650 for Eutelsat OneWeb. Kilburg sees more room to run in direct-to-cell service with mobile carriers and in-flight internet on commercial airlines.

The Launch Edge

Falcon 9 and Falcon Heavy fly dozens of missions each quarter. Rivals including Blue Origin, United Launch Alliance and Arianespace haven’t matched the pace. Reusable boosters keep costs down.

“Another major advantage is that SpaceX is its own customer,” Kilburg wrote. Satellite operators must buy launches from outside providers. SpaceX can use its own rockets to expand Starlink.

A reliable Starship would widen the gap. “Starship’s ability to carry much larger satellites could make it a key part of Starlink’s next phase of growth, while opening up new opportunities in communications and defense,” he wrote.

Levels To Watch

The stock has climbed about 41% from its August low. Kilburg argued the pullback from the post-IPO peak helped establish “a more durable base.”

“The 50-day moving average is also around the $135 IPO price, which is the level I’m watching as near-term support,” he wrote.

Shares newly freed by the latest post-IPO lockup expiration could stir up volatility. Kilburg called it “a near-term technical issue, not a change in the long-term story.”

He also flagged risk around one of SpaceX’s more speculative ambitions. “It’s possible that computing in space may not become as practical or develop as quickly as expected,” he said. “But that’s a risk I’m willing to take given the long-term opportunity I see.”

SPCX Stock Price Activity: SpaceX stock was up 1.32% at $150.64 at the time of publication on Monday, according to data from Benzinga Pro.

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