Why EchoStar Stock Surged Higher Today

• A increasing SpaceX valuation is enriching EchoStar.

• EchoStar took an involvement successful SpaceX from spectrum licence income archetypal announced successful September.

• 10 stocks we similar amended than EchoStar ›

Shares of outer communications institution EchoStar (NASDAQ: SATS) person been rocketing higher this month. The banal continued its ascent today.

After surging arsenic overmuch arsenic 7.4%, EchoStar banal remained higher by 6.8% arsenic of 12:05 p.m. ET. That has helped it soar by implicit 36% successful December alone.

Investors are pouring into EchoStar banal arsenic reports surfaced of plans for an archetypal nationalist offering (IPO) of privately held SpaceX. That's due to the fact that EchoStar has announced 2 spectrum licensing income to SpaceX since September that included payments successful SpaceX equity.

EchoStar archetypal announced it would merchantability the spectrum licenses for its AWS-4 and H-block outer networks to SpaceX for $17 billion. That included $8.5 cardinal successful SpaceX banal priced astatine the backstage company's valuation astatine the time. Last month, the companies added EchoStar's AWS-3 spectrum successful different deal, valued astatine astir $2.6 cardinal successful SpaceX stock.

Now reports person surfaced that SpaceX whitethorn spell nationalist astatine a valuation of $800 cardinal adjacent year. SpaceX laminitis Elon Musk subsequently called those reports "not accurate" successful a societal media post.

Regardless, investors who judge SpaceX whitethorn yet spell nationalist person decided to capitalize connected this imaginable improvement by owning EchoStar shares.

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Howard Smith has nary presumption successful immoderate of the stocks mentioned. The Motley Fool has nary presumption successful immoderate of the stocks mentioned. The Motley Fool has a disclosure policy.

Why EchoStar Stock Surged Higher Today was primitively published by The Motley Fool