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Citi says EchoStar stock offers a discounted way to own SpaceX, valuing the satellite company at $159 per share. "EchoStar's current stock price implies its future SpaceX stake is valued at about $86 per share, a 46% discount to the stock's closing price," Citi said in a research note. The bank's valuation is based on the approximately 52 million SpaceX shares EchoStar is set to receive from a spectrum sale agreement. Under the deal, originally announced in September 2025 and amended in November, EchoStar agreed to sell spectrum licenses to SpaceX for roughly $19.6 billion, with about $11.1 billion paid in SpaceX Class A common stock priced at $212 a share. Applying Citi's $165 price target for SpaceX increases EchoStar's implied value to $161 per share. EchoStar shares rose 3% Monday, while SpaceX shares gained another 20%. The stock has risen 5% this year but fallen 14% over the past month as investors sold existing space-related names including EchoStar, Rocket Lab and AST SpaceMobile to rotate capital directly into the newly public SpaceX shares. EchoStar's traditional businesses continue to face headwinds. In the first quarter of 2026, the company lost 366,000 net pay-TV subscribers, ending the period with 6.63 million total subscribers. Pay-TV revenue declined 10% year-over-year. Its HughesNet satellite broadband business lost 58,000 subscribers during the quarter as low-Earth orbit competitors such as Starlink gained ground. Overall revenue fell 5.2% to $3.67 billion, though the company narrowed its net loss to $146.9 million from $202.7 million a year earlier. Of the six analysts covering EchoStar, three rate it a buy and three rate it a hold, according to Koyfin data. The stock has a 12-month average price target of $137.60, representing potential upside of about 17% from the last closing price. Retail sentiment on Stocktwits has turned extremely bullish, with message volume surging 581% over the past 30 days and 123% in the past seven days alone, according to the platform's internal data. Some users have argued EchoStar should trade above $1,430 based on the value of its SpaceX holdings. The Citi call positions EchoStar as one of the few publicly traded vehicles for SpaceX exposure, a key differentiator as the Elon Musk-led company's valuation climbs. Investors will watch for the closing of the spectrum transaction and the subsequent distribution of SpaceX shares, which will determine the timing and magnitude of EchoStar's re-rating. This article is for informational purposes only and does not constitute investment advice.
**Dish DBS Corp., the satellite TV unit of EchoStar Corp., filed for a prepackaged Chapter 11 restructuring Tuesday to address $25 billion in debt and complete the transition of its wireless business.** Dish DBS Corp. filed for a prepackaged Chapter 11 restructuring Tuesday, seeking to shed $25 billion in debt after years of subscriber losses and a failed merger with DirecTV. "The chapter 11 filing represents Ergen's gamble to clean up a massive balance sheet after a failed merger with DirecTV and years of litigation with creditors," people familiar with the matter told the Wall Street Journal. The restructuring, backed by major bondholders under an agreement announced earlier this year, aims to facilitate early repayment of Dish DBS debt and complete the transition of the Dish Wireless business. EchoStar's broadcast division generated $2.26 billion in revenue in its most recent quarter, down $260 million from a year earlier, as cord-cutting accelerated subscriber losses. The filing puts EchoStar's remaining assets — including its Boost Mobile prepaid phone business and valuable wireless spectrum holdings — in focus. The company has been pursuing multibillion-dollar spectrum sales to AT&T Inc. and SpaceX as it seeks to monetize its airwave portfolio while restructuring its legacy satellite TV operations. The prepackaged structure means Dish DBS has secured support from key bondholders before filing, potentially allowing it to emerge from bankruptcy faster than a traditional Chapter 11 process. The company's satellite TV business has been in decline for years as consumers shift to streaming services, with the division losing subscribers each quarter. **Spectrum Sales and Wireless Transition** EchoStar's wireless spectrum holdings represent the company's most valuable asset. The company has been in discussions to sell portions of its spectrum to AT&T and SpaceX, deals that could generate billions in proceeds. The restructuring is designed to separate the declining satellite TV liabilities from the wireless business, allowing the latter to operate without the burden of legacy debt. The restructuring comes after EchoStar's failed merger with DirecTV, which collapsed amid regulatory scrutiny and litigation from creditors. That deal would have combined the two largest satellite TV providers in the U.S., but opposition from bondholders and antitrust concerns ultimately derailed the transaction. This article is for informational purposes only and does not constitute investment advice.
Space concept stocks tumbled in pre-market trading Tuesday, with Rocket Lab USA Inc. falling more than 6% as a sector-wide selloff extended into a second day. The decline follows Rocket Lab's 8.33% drop on Monday after its Nasdaq-100 Index entry, a textbook sell-the-news event that triggered profit-taking after the stock had rallied ahead of the inclusion. EchoStar Communications Corp. and AST SpaceMobile Inc. each lost more than 5%, while SpaceX declined nearly 3%, according to pre-market data. The sector rotation away from smaller aerospace names has intensified since SpaceX's initial public offering, redirecting investor capital toward the larger player. The move coincided with a broader risk-off tone in growth stocks, with the Nasdaq 100 under pressure as Treasury yields edged higher. Rocket Lab's first-quarter revenue reached $200.35 million, a 63.4% year-over-year increase that exceeded the $189.65 million analyst estimate. Earnings per share came in at negative $0.07, matching expectations and improving from the negative $0.12 loss recorded in the prior-year quarter, though the company continues to operate at a net margin of negative 26.87% and a negative return on equity of 11.72%. Wall Street forecasts full-year EPS of negative $0.29. HSBC Holdings expanded its Rocket Lab stake by 613.9% during the fourth quarter, acquiring 1.35 million additional shares valued at approximately $110.7 million, according to a regulatory filing. Several other institutional investors, including Sara Bay Financial, ORG Partners, Traynor Capital, Capital Advisors Wealth Management, and Quadcap Wealth Management, also increased their allocations. Institutional investors collectively control 71.78% of outstanding shares. The institutional buying contrasts with insider selling — company insiders disposed of 573,515 shares valued at more than $76 million over the past three months. Insider Frank Klein sold 36,860 shares on May 28 at an average price of $147.42, generating $5.43 million in proceeds, according to regulatory filings. Insider Marvin Bradford Clevenger sold 3,500 shares on the same date at $146.67. Both transactions were conducted through predetermined Rule 10b5-1 trading arrangements. Wall Street assigns RKLB a Moderate Buy consensus rating with an average price target of $102.76, slightly below Monday's opening price. The stock's 50-day moving average sits at $105.58, while the 200-day moving average stands at $83.61. RKLB's 52-week trading range spans from $27.84 to $151.00, and the stock carries a beta of 2.48, indicating substantial price volatility. Despite the recent weakness, RKLB maintains a year-to-date gain of 53.73% and commands a market capitalization of $62.07 billion. The company's current ratio registers at 4.47, with a quick ratio of 4.02, and its debt-to-equity ratio stands at 0.02. The selloff in space stocks reflects a broader recalibration as investors weigh the implications of SpaceX's public market debut for the sector. Rocket Lab's next catalyst is the payload preparation for its 90th Electron mission, a milestone that demonstrates the maturity of its launch operations but may not be sufficient to reverse near-term selling pressure. This article is for informational purposes only and does not constitute investment advice.