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Jun 12, 2026 12:00 PM

EchoStar Stock Drops After Yesterday's Surge: What's Happening?

EchoStar Corp. (NASDAQ:SATS) shares are plunging on Friday after ripping higher Thursday when traders piled into SpaceX-linked names.

EchoStar stock is among today’s weakest performers. Why is SATS stock falling?

EchoStar owns a meaningful stake in SpaceX through its $17 billion spectrum deal, which included up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. With the IPO approaching, that stake became a major catalyst and the stock surged.

Today's move is the reversal of that surge. Fast, event‑driven rallies often attract short‑term traders who lock in gains the next day, especially when the move is tied to a single headline rather than a broad shift in fundamentals.

Yesterday's Catalyst Still Stands

The pullback does not change why EchoStar rallied. EchoStar's stake in SpaceX could become far more valuable once the IPO prices. The company received its stock when SpaceX was valued at about $400 billion.

EchoStar also has ...