EchoStar Stock Continues To Rise: What's Driving The Momentum?

EchoStar Corp (NASDAQ:SATS) shares soared during regular trading hours on Tuesday. The stock is continuing to climb in after-hours following reports that Starlink and T-Mobile US Inc (NASDAQ:TMUS) may be interested in a potential deal.

SATS shares are at critical resistance. See the full story here.

What To Know: Shares of EchoStar, the parent company of DISH Network, surged 70% on Tuesday after AT&T Inc (NYSE:T) announced plans to buy spectrum licenses from EchoStar for approximately $23 billion.

After the market close on Tuesday, Semafor reported that Starlink and T-Mobile have also expressed interest in purchasing some or all of EchoStar’s spectrum.

The report indicates that T-Mobile initially became interested in a majority of the company’s licenses after the Federal Communications Commission pressured EchoStar to find a buyer for its spectrum holdings. T-Mobile is reportedly still in talks to purchase some of the licenses that are not part of the deal with AT&T.

“This spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization concerns,” EchoStar co-founder and Chairman Charlie Ergen said on Tuesday.

Starlink was reportedly bidding on part of EchoStar’s spectrum that is thought to be valued at close to $30 billion, but the report indicates that it’s not clear if negotiations between Starlink and EchoStar are ongoing.

How To Buy SATS Stock

Besides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For EchoStar, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

SATS Price Action: EchoStar shares closed Tuesday up 70.25%. The stock was up another 8.91% in after-hours, trading at $55.40 at the time of publication, according to Benzinga Pro.

Read Next:

• AT&T Expands 5G Empire With $23 Billion EchoStar Spectrum Acquisition

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