Why EchoStar Corporation (SATS) Crashed On Friday

We recently published a list of These 10 Stocks Lost This Much Today. In this article, we are going to take a look at where EchoStar Corporation (NASDAQ:SATS) stands against other Friday’s worst performers.

EchoStar fell by 12.10 percent on Friday to end at $17.73 apiece as investors sold off positions to mitigate the risks, following news that it intentionally did not settle worth $326 million of interest payments for one of its senior notes, saying that its ongoing battle with the Federal Communications Commission (FCC) froze its ability to make decisions.

Why EchoStar Corporation (SATS) Crashed On Friday

A telecom engineer behind the control board in a comms facility.

In a regulatory filing on Friday, EchoStar Corporation (NASDAQ:SATS) said that it received a letter from the FCC on May 9 indicating that the latter was beginning a review of its compliance with certain federal obligations to provide 5G service in the US and raising concerns regarding its buildout extension and mobile-satellite service utilization in the 2GHz band.

“In light of this uncertainty, we have elected not to make an approximately $326 million cash interest payment due on May 30, 2025,” it said, adding that the move was to allow time for the FCC to provide the relief it requested.

The move sparked concerns that the company may potentially file a bankruptcy protection to shield itself from creditors.

Overall, SATS ranks 6th on our list of Friday’s worst performers. While we acknowledge the potential of SATS our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SATS and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.