What Happened?
Shares of satellite communications company EchoStar (NASDAQGS:SATS) jumped 3.5% in the morning session after its subsidiary, Sling TV, announced the launch of innovative, contract-free viewing passes. The passes, which include a $4.99 Day Pass, a $9.99 Weekend Pass, and a $14.99 Week Pass, are designed to give viewers more control and flexibility without requiring a long-term contract. This move is strategically timed just before the football season, aiming to attract viewers who want temporary access to live sports and entertainment. According to company announcements, this initiative could increase revenue by reaching a broader audience seeking more flexible viewing options. The positive news comes on the heels of other significant developments, including a recent US$1.3 billion contract with MDA Space to build a new LEO satellite constellation, reinforcing a period of strategic growth for the company.
After the initial pop the shares cooled down to $27.92, up 1.6% from previous close.
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What Is The Market Telling Us
EchoStar’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 16.7% on the news that the company reported second-quarter financial results that missed analyst expectations on both revenue and earnings. The company reported second-quarter revenue of $3.72 billion, which fell short of analyst forecasts and represented a 5.8% decline from the same period last year. EchoStar also posted a loss of $1.06 per share, missing Wall Street's expectations. This loss widened significantly from the $0.76 loss per share recorded in the prior year's quarter. The combination of missing on both revenue and earnings prompted a negative reaction from investors.
EchoStar is up 22.7% since the beginning of the year, but at $27.92 per share, it is still trading 14.9% below its 52-week high of $32.82 from July 2025. Investors who bought $1,000 worth of EchoStar’s shares 5 years ago would now be looking at an investment worth $904.15.
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