Elon Musk's response to Ukraine's call for making available Starlink satellites to keep the nation's internet going amid a Russian invasion has brought new attention to the company and the space sector.
Ukraine Crisis Amplifies Utility Of Starlink: Traditionally, investors in communication stocks view the total addressable market of these companies as "remote/off-the-grid areas" of the world where terrestrial or fiber networks are not available, Morgan Stanley analyst Adam Jonas said.
The events of the last two weeks highlight their importance in areas that may already be served, he added.
Starlink's effectiveness will be put to the test as the internet service in Ukraine deteriorates further as the conflict intensifies, the analyst said.
Related Link: Falcon 9 Takes Another 47 Starlink Satellites To Space: Why Elon Musk Is Calling It An 'American Broomstick' Launch
Morgan Stanley's Takeaways On Starlink: As opposed to the popular notion that the scope of TAM for Starlink is limited to household satellite broadband/internet, the Musk-run satellite communication service addresses a broad set of clients, Jonas said.
The potential clientele includes terrestrial vehicles, aircraft, eVTOL, governments, corporations and others, he added.
The analyst sees potential for SpaceX working with EV giant Tesla, Inc. (NASDAQ:TSLA) in several areas, including content, connectivity and other vertically integrated services.
The economics and pace of deployment of Starlink will likely move faster following commercialization of the Starship, the analyst said.
Other Potential Beneficiaries: Jonas noted that other companies are also investing in their own satellites. Among the companies mentioned by the analyst are:
- Globalstar, Inc. (NYSE:GSAT)
- Iridium Communications Inc. (NASDAQ:IRDM)
- Rocket Lab USA, Inc. (NASDAQ:RKLB)
- MDA Ltd. (OTC:MDALF)
Related Link: Elon Musk Delivers Second SpaceX Starlink Satellite Terminal Shipment To Ukraine
