EchoStar (SATS) stock surged 10% in Friday’s regular trading session and hit a 52-week high of $88 per share. The rally has less to do with any company-specific news and more about its strategic stake in SpaceX (PC:SPXEX).
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
In September 2025, EchoStar agreed to sell its AWS-4 and H-block spectrum licenses to Elon Musk‘s SpaceX, in exchange for cash and billions of dollars’ worth of SpaceX shares. That bet is paying off today. The Wall Street Journal reported that SpaceX is preparing a secondary share sale at an $800 billion valuation, double its previous $400 billion mark.
This means EchoStar’s SpaceX stake has likely doubled, strengthening its finances and boosting investor sentiment. Also, EchoStar’s stake positions the company as a rare public‑market proxy for the private space giant.
What’s Ahead for EchoStar Stock?
EchoStar stock has rallied about 370% in the past six months. The company’s exposure to SpaceX is a major driver of investor sentiment. Also, the $23 billion spectrum sale to AT&T (T) is seen positively as it gives EchoStar fresh capital to reduce debt and potentially reinvest in growth initiatives.
At the same time, EchoStar’s core operations remain under pressure. The company reported steep losses in Q3, with negative net income and margins. Moreover, it faces challenges in its Boost Mobile and satellite businesses.
This mixed scenario signals that EchoStar’s future performance depends on whether the company can use its strategic assets to offset weak fundamentals and deliver sustainable growth.
Is SATS a Buy, Sell, or Hold?
Turning to Wall Street, SATS stock has a Moderate Buy consensus rating based on two Buys and two Holds assigned in the last three months. At $92.75, the average EchoStar stock price target implies a 13.09% upside potential.
