What's Going On With EchoStar Stock Today?

Shares of EchoStar Corporation (NASDAQ:SATS) are rising Thursday on continued momentum regarding the company’s stake in SpaceX, which could rocket up in value soon.

• EchoStar stock is challenging resistance. Why are SATS shares at highs?

What To Know: EchoStar received $8.5 billion in SpaceX stock after selling spectrum licenses to the Elon Musk-led company in September. SpaceX was worth around $400 billion at that time, but according to Bloomberg, SpaceX is now exploring a potential IPO with a valuation of approximately $1.5 trillion, meaning that EchoStar’s stake could be worth significantly more.

Much of SpaceX’s recent success is due to Starlink, which has seen growth in its Business-to-Business segment. However, future plans for SpaceX may involve building data centers in space. Musk seemed to confirm such in a post on X this week, and he’s not the only one paying attention to the possibility. Google‘s Project Suncatcher is exploring a network of solar-powered satellites and Jeff Bezos’ Blue Origin is currently working toward orbital data centers.

The competition for data centers is fierce as new land is being taken at a rapid pace for the infrastructure that supports artificial intelligence. The race is on as analysis by McKinsey shows that by 2030, companies will invest almost $7 trillion in capital expenditures on data center infrastructure globally.

SATS Analysis: EchoStar is currently showing strong bullish momentum, trading well above its key moving averages. The stock is positioned 40.7% above its 20-day SMA and 143.7% above its 200-day SMA, indicating a powerful upward trend.

The RSI is at 87.59, which signals that the stock is in overbought territory. This suggests that while the momentum is strong, traders should be cautious as a pullback could be on the horizon.

MACD is above its signal line, indicating bullish momentum is still intact. This reinforces the positive trend, but traders should keep an eye on any potential shifts in momentum.

Currently, there are no defined support or resistance levels, making it challenging to identify clear entry or exit points. If the stock approaches its recent swing high, it could face selling pressure, while a drop could lead to a search for new support.

Over the past 12 months, the stock has skyrocketed by 348.76%, reflecting a strong bullish trend. This impressive performance indicates that traders have been rewarded for holding onto the stock during this period of growth.

SATS Price Action: Shares were up 2.13%, trading at $106.20 at the time of publication, according to Benzinga Pro.

Read More:

• American Airlines In Talks With Starlink Rival Amazon Leo To Provide Onboard WiFi: Report

Image: Shutterstock