What Happened?
Shares of satellite communications company EchoStar (NASDAQGS:SATS) fell 16.7% in the morning session after the company reported second-quarter financial results that missed analyst expectations on both revenue and earnings. The company reported second-quarter revenue of $3.72 billion, which fell short of analyst forecasts and represented a 5.8% decline from the same period last year. EchoStar also posted a loss of $1.06 per share, missing Wall Street's expectations. This loss widened significantly from the $0.76 loss per share recorded in the prior year's quarter. The combination of missing on both revenue and earnings prompted a negative reaction from investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy EchoStar? Access our full analysis report here, it’s free.
What Is The Market Telling Us
EchoStar’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. But moves this big are rare even for EchoStar and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 4.3% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
EchoStar is up 20.3% since the beginning of the year, but at $27.37 per share, it is still trading 16.6% below its 52-week high of $32.82 from July 2025. Investors who bought $1,000 worth of EchoStar’s shares 5 years ago would now be looking at an investment worth $968.16.
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