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    EchoStar (SATS) Is Up 6.2% After Selling US$42.6 Billion In Spectrum Licenses To AT&T And SpaceX

    Simply Wall St·01/04/2026 21:24:14
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    • In 2025, EchoStar sold most of its spectrum portfolio, including US$23.00 billion in licenses to AT&T and US$19.60 billion to SpaceX, following a resolved Federal Communications Commission review that had temporarily frozen its ability to make interest payments.
    • These transactions have effectively turned EchoStar into an investment-focused company and a major shareholder in SpaceX, reshaping how investors assess its core business model and asset base.
    • We’ll now examine how EchoStar’s large-scale spectrum sales and pivot toward an investment-led model influence its existing investment narrative.

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    EchoStar Investment Narrative Recap

    To own EchoStar today, you need to believe its shift from operator to investment platform can create long term value despite continued losses and balance sheet pressure. The spectrum sales to AT&T and SpaceX, and the resulting stake in SpaceX, relieve immediate financial strain but do not fully remove execution and funding risks around the remaining businesses.

    The creation of EchoStar Capital, alongside Charles Ergen’s return as CEO and Hamid Akhavan leading the new investment arm, ties directly into this pivot toward an investment led model. This structure frames upcoming decisions on how to deploy the large spectrum sale proceeds as a key catalyst for how investors judge EchoStar’s ability to stabilize its finances and redefine its core earnings power.

    Yet, against this backdrop, EchoStar’s history of negative free cash flow and sizeable debt maturities remains information investors should be aware of as they consider whether...

    Read the full narrative on EchoStar (it's free!)

    EchoStar's narrative projects $16.0 billion revenue and $1.6 billion earnings by 2028. This requires 1.3% yearly revenue growth and a $1.9 billion earnings increase from -$315.4 million today.

    Uncover how EchoStar's forecasts yield a $90.29 fair value, a 20% downside to its current price.

    Exploring Other Perspectives

    SATS 1-Year Stock Price Chart
    SATS 1-Year Stock Price Chart

    Six Simply Wall St Community valuations span from US$2.98 to US$139.45 per share, reflecting very different expectations for EchoStar. You can weigh those views against the company’s unresolved funding and solvency risks that still shape its performance outlook.

    Explore 6 other fair value estimates on EchoStar - why the stock might be worth as much as 24% more than the current price!

    Build Your Own EchoStar Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.