Jim Cramer Agrees With a Caller on EchoStar Being a “Great Proxy” for SpaceX

EchoStar Corporation (NASDAQ:SATS) is among Jim Cramer’s stock calls as he discussed the impact of the bond market. A caller asked if the company is a suitable investment proxy for SpaceX. Cramer replied:

I gotta tell you, I think it is. It’s moved so much, but I still think it is a great proxy, and I’m going to hand it to you for actually even thinking it through.

Photo by Nicholas Cappello on Unsplash

EchoStar Corporation (NASDAQ:SATS) provides networking technologies and communications services, including satellite television, streaming video, wireless connectivity, broadband access, and 5G infrastructure. Cramer mentioned the stock during the March 9 episode and said:

Finally, there’s EchoStar, which is a satellite play. After doing nothing for basically 17 years, this company burst into the scene last year with some huge deals to sell spectrum. In late August, EchoStar announced it would sell certain wireless spectrum licenses to AT&T for $23 billion. Just a couple of weeks later, in early September, they rolled out a separate deal to sell spectrum licenses to SpaceX for $17 billion.

In November, they increased the size of that SpaceX transaction. Basically, the market dramatically underappreciated the value of EchoStar’s spectrum assets, which is why the stock has been skyrocketing, up nearly 300% over the past year. Following the SpaceX deal, which included some stock consideration, I think some people might have bought EchoStar purely as a backdoor way to get some exposure to Elon Musk’s SpaceX ahead of its IPO. That’ll probably be smart. It’d probably be red-hot.

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