SpaceX stock saw a notable gain following a recent company town hall where Elon Musk discussed the future of Starlink. Musk claimed that Starlink possesses nearly 11,000 satellites, a count he describes as higher than all other operators combined. He projected that his company will eventually carry over 90% of global internet traffic.
This growth is reflected in recent financial performance. In the second quarter of 2026, SpaceX reported $4.29 billion in connectivity revenue. This figure represents a 66% increase compared to the previous year. The total number of Starlink subscribers doubled to 12 million during this period, while overall company revenue grew by 92% to reach $7.81 billion.
Market analysts note that if this prediction holds true, it represents a shift in market structure for the communications industry. Historically, this sector stays fragmented, which helps keep prices lower for consumers. A single operator controlling a vast majority of traffic creates questions regarding pricing power and industry competition.
Competitors currently working in the satellite space include Amazon with Project Kuiper, as well as companies like AST SpaceMobile and Viasat. These firms are building their own broadband constellations to challenge the current market leaders. Meanwhile, terrestrial providers are navigating how orbital broadband fits into their existing fiber and 5G infrastructure.
Investors are monitoring how these developments affect competitor multiples in the coming months. As SpaceX continues its build-out, the market is evaluating whether Musk's stated goals remain credible or if potential regulatory and competitive hurdles will alter the landscape. Shares of the company remain under scrutiny as the market processes these long-term projections.