Why EchoStar Is Skyrocketing Today

Key Points

• EchoStar is selling $23 billion worth of spectrum licenses to AT&T, adding 50 MHz to its network.

• The deal provides critical liquidity for EchoStar, which has faced debt issues, missed bond payments, and an FTC probe.

• 10 stocks we like better than EchoStar ›

Shares of EchoStar (NASDAQ: SATS) jumped on Wednesday, closing the day up 15.5%. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) both ticked up modestly.

The telecommunications company's stock continues to rise after yesterday's announcement that it has agreed to sell spectrum licenses to AT&T in a multibillion-dollar all-cash transaction.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

EchoStar surges on major deal with AT&T

The company, which originally started Dish Network, has an extensive satellite network and will now sell a significant portion of its spectrum to AT&T for roughly $23 billion. The deal will expand AT&T's network by about 50 MHz of low-band and mid-band spectrum and is expected to close by the middle of 2026, assuming everything gets the stamp of approval from regulators.

The company has been the target of the Federal Communications Commission (FCC), which has accused EchoStar of failing to meet certain obligations in its use of its available wireless spectrum. The company has skipped bond payments and has been close to filing bankruptcy, citing the FTC probe as interfering with its ability to deploy its 5G network.

Image source: Getty Images

Execution risks remain for EchoStar

If the deal goes through, it would provide EchoStar with much-needed liquidity, strengthen AT&T's competitive positioning in wireless, and potentially reshape the U.S. telecom landscape amid ongoing 5G build-out challenges and industry consolidation pressures.

While the AT&T deal offers a lifeline, the company has proven to be on shaky ground with a history of missed obligations. This is a high-risk stock, and I don't recommend it for investors.

Should you invest $1,000 in EchoStar right now?

Before you buy stock in EchoStar, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and EchoStar wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,162!*

Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.