EchoStar Corporation

SpaceX has told investors it plans to launch a Starlink mobile service for US consumers, the Financial Times reported, a move that could see the Elon Musk-led company compete directly with Verizon, AT&T and T-Mobile. President Gwynne Shotwell said during a recent IPO roadshow that SpaceX is considering a Starlink retail product and could build its own terrestrial US mobile network. SpaceX already offers direct-to-cell connectivity with T-Mobile in the US, providing supplemental coverage from space to extend internet access to remote areas. Last year, SpaceX bought wireless spectrum licenses from EchoStar for its Starlink satellite network for about $17 billion and then again for $2.6 billion in November, giving it the ability to quickly create a strong and affordable direct-to-cell service by using EchoStar's wireless airwaves. Brokerage firm Oppenheimer said earlier this month that SpaceX will disrupt the $1.6 trillion US communications industry as its satellite broadband unit Starlink expands.

A bullish thesis on EchoStar Corporation argues the stock is mispriced, as its roughly 260 million post-split SpaceX shares—about 2% of the company—imply nearly $35 billion of gross value at a $135 IPO price, while an expected $20.25 billion AT&T cash payment will significantly reduce its $24.56 billion debt load, together exceeding EchoStar's approximately $32 billion market capitalization. Post-deleveraging and S&P 500 inclusion beginning March 2026, EchoStar would effectively become a clean holding company with publicly traded SpaceX exposure surpassing its entire equity value. Near-term price action is influenced by derivatives positioning, with short interest at 25.64%, days to cover at 7.68, and a 4.8:1 call-to-put ratio, creating mechanically driven volatility. Secondary NAV estimates place EchoStar at $155–165 per share, offering meaningful upside if SpaceX trades higher on debut, though risks include a delay in the AT&T closing or weaker-than-expected SpaceX IPO performance.