What Happened?
Shares of satellite communications company EchoStar (NASDAQGS:SATS) jumped 7% in the afternoon session after the stock continued its rally from the previous trading session, driven by reports that the value of its significant stake in SpaceX could double.
The momentum started after The Wall Street Journal reported that SpaceX was preparing a share sale that would value the rocket maker at $800 billion, a twofold increase from its prior valuation. EchoStar acquired its stake in SpaceX in September 2025 by selling spectrum licenses to the company. This move now appeared very shrewd. Adding to the positive sentiment, Citi increased its price target for EchoStar to $87, flagging what it saw as a transformative phase for the company.
The shares closed the day at $88.30, up 6.9% from previous close.
Is now the time to buy EchoStar? Access our full analysis report here.
What Is The Market Telling Us
EchoStar’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 2.6% on the news that comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.
EchoStar is up 287% since the beginning of the year, and at $88.12 per share, has set a new 52-week high. Investors who bought $1,000 worth of EchoStar’s shares 5 years ago would now be looking at an investment worth $3,923.
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