Jim Cramer Says “The Market Dramatically Underappreciated the Value of EchoStar’s Spectrum Assets”

EchoStar Corporation (NASDAQ:SATS) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer explained why the stock has been “skyrocketing,” as he stated:

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.

Photo by Adam Nowakowski on Unsplash

EchoStar Corporation (NASDAQ:SATS) provides networking technologies and communications services, including satellite television, streaming video, wireless connectivity, broadband access, and 5G infrastructure.

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