SpaceX IPO Approaching: Will EchoStar Be a Good Buy in 2026?

TradingKey - Today, EchoStar (SATS) is a hybrid story around legacy consumer communications and a high-profile private space play. As a result of its merger with DISH, the company offers satellite TV services and the wireless brand Boost Mobile, in addition to spectrum assets and wholesale network agreements.

What changed the narrative in 2025, however, was not a resurgent Pay-TV or wireless business, but a strategic spectrum sale to SpaceX that transformed the balance sheet and gave shareholders indirect ownership in one of the world’s most secretive private companies.

In simple terms, EchoStar has become a telecom platform with a minority stake in SpaceX, and the EchoStar stock story is now part operations and part asset play.

How Did EchoStar Stock Perform in 2025?

In 2025, SATS stock exhibited one of the largest price increases in the entire stock market. At times, the stock had increased by approximately 375%. This increase was the result of an improved financial position for the company after executing the spectrum transaction as well as excitement surrounding the acquisition of shares in SpaceX.

As news was beginning to circulate regarding an IPO of SpaceX potentially occurring as soon as 2026, the availability of EchoStar stock as an attractive, liquid means of acquiring exposure to future private valuation trends for SpaceX began to entice investors into purchasing shares.

The catalyst for this move was the spectrum sale to SpaceX, which was valued at almost $17 billion—a mixture of cash and an equity stake in SpaceX. Subsequent reports in the media regarding the private valuation of SpaceX when it goes public were thought to be worth anywhere from $800 billion to over $1 trillion, leading Wall Street analysts to increase their target prices for SATS stock.

Additionally, various other catalysts added steam to gains, such as the potential sale of the AWS-3 paired spectrum, a settlement with tower companies, and the resolution of the DISH DBS creditor case that could open strategic options, such as taking another look at a DIRECTV merger.

Moreover, the market recognized a shift in EchoStar’s capital structure and potential synergies with AT&T (T) for wholesale service through its network and the potential for SpaceX to provide satellite-to-phone service to Boost Mobile customers in the future.

Together, these factors led to substantial interest from institutions, even though the company’s legacy satellite television business continues to experience subscriber reductions and revenue pressure.

Is the IPO Buzz for SpaceX Going to Support the Commercial Aerospace Sector in 2026?

Major IPOs typically attract an influx of investment and capital into the public secondary market and the commercial aerospace sector. When an IPO occurs from a well-known company such as SpaceX, it brings visibility to the entire aerospace sector, attracts investment from generalists, provides multiple valuation benchmarks to other aerospace companies, and creates liquidity for the entire aerospace industry. There will be a greater portion of institutional and retail investment into aerospace companies that are involved in satellite communications, Earth observation, launch infrastructure, and defense services related to space due to the IPO serving as a high-profile indication to help investors set their expectations.

The effect on the aerospace industry, though, will hinge on the timing and size of the SpaceX IPO. Media reports have indicated that the SpaceX IPO could be delayed until 2027, depending on the general market sentiment. If there are higher levels of market volatility or if the terms of the IPO are more conservatively structured, then the positive effects of the IPO on other aerospace stocks will be less significant or more selective. Investors should also make a distinction between pure-play space operators (companies whose primary business is in aerospace) versus diversified telecom companies (companies whose primary business is in telecom but have some investments in aerospace), as the halo effect of investments in aerospace from the IPO is greatest for the companies most similar or comparable to SpaceX.folio.

Could EchoStar Shares Rally Again in 2026?

The 2026 setup has “a couple of moving parts.” First is SpaceX’s path to a public listing and the valuation at which it prices or clears secondary sales. A greater private or public valuation could potentially increase the implied value of EchoStar’s holding, which would be positive for EchoStar stock. Second, any lockup or other trading restriction associated with those shares may impact how rapidly EchoStar is able to monetize or use its stake to cut down on leverage or finance strategy. Third is execution in the core operations. Even with the SpaceX stake, the company’s satellite TV and wireless arms have to stanch their losses or discover new growth pillars. Progress on cost discipline, subscriber dynamics, spectrum monetization, and legal overhangs are all positives.

There is a decent argument that SATS stock still could be quite sensitive to SpaceX headlines, both positive and negative. If an IPO falls at the high end of rumored valuations and the overall outlook on commercial space is positive, you may see EchoStar making a comeback. But investors should be ready for outcomes in which an IPO is delayed or priced below high expectations. In such a case, shares would presumably trade back to company-specific fundamentals and the pace of any further asset sales.

How EchoStar Compares With Other Space Stocks

EchoStar's presence in the space sector, EchoStar's shares, and its exposure to SpaceX bridge the gap between telecom and commercial satellite operators. Vehicles that are like AST SpaceMobile (ASTS) are not directly linked to SpaceX and the satellites that AST SpaceMobile is building and will sell through partnerships.

While Iridium (IRDM), Viasat (VSAT), and Redwire (RDW) all have other partners in common with no direct links between their holdings, all have different end-use and revenue stream differentiation. Additionally, partners of Globalstar (GSAT) like Apple (AAPL) will benefit from the improved technology used to provide services to them in the future.

EchoStar has a clear competitive advantage because it holds an ownership stake in SpaceX and has undertaken a significant restructured balance sheet due to its acquiring spectrum. Furthermore, with respect to potential telecommunications synergies, as well as through both Boost Mobile and wholesale relationships with AT&T, EchoStar’s competitive position will likely be strengthened as compared to its competitors. On the flip side, the market has already priced in much of the exuberance around SpaceX’s future growth into EchoStar’s expected stock performance through 2025, while EchoStar’s legacy businesses continue to face overriding challenges associated with both secular and competitive trends.

Investors in search of a more direct growth vehicle focused on space services or on sensing or analytics may find names such as AST SpaceMobile or BlackSky provide more operational torque. Conversely, for those investors seeking value-utilization operations, Viasat would be a much lower-risk and reward investment than EchoStar. EchoStar, therefore, serves as a hybrid of two investment profiles: a proxy for SpaceX and a turnaround investment with a possible return on invested capital in both consumer and wireless communications. The best way to play the space opportunity may depend on an investor’s investment objective; for example, would the investor prefer indirect SpaceX-specific exposure through a publicly traded security that carries with it the telecommunications risks borne by EchoStar?

Key Risks You Should Know Before Buying

The most immediate danger lies in the valuation trajectory of a single private asset. Given that much of EchoStar’s implied value is directly related to SpaceX, delays in terms of launch schedule, pricing, or post-IPO performance could negatively affect SATS stock prices. In addition, there could be other restrictions (such as lockups) that would hinder EchoStar from monetizing any potential appreciation or using its capital structure to its fullest extent on an expected timeline.

In terms of operations, EchoStar is experiencing declining inventories (satellite) in TV subscribers and fierce competition in wireless, which is creating revenue and cash flow pressure. There are also potential legal/regulatory uncertainties due to negotiations with creditors and potential transactions involving legacy TV assets, as well as concerns regarding the further sale of spectrum and negotiations with tower operators. Moreover, there are multiple governance issues, including the history of the company under Charlie Ergen and the relationship between public shareholders and strategic business priorities.

How to Buy EchoStar Stock

It is fairly easy to buy EchoStar Corporation. Simply log into your brokerage account and search for the ticker symbol SATS so that you can view the EchoStar Corporation trading screen. Determine how much of your overall portfolio you want to allocate to this position given the stock's volatility relative to new SpaceX developments and the turnaround of operations. In addition to using a limit order to ensure you do not exceed a certain amount, you can also buy shares using a market order, which will be executed for you at the current market price. Once your order has been filled, verify how large your new position is within the parameters you established for your investment, set alerts regarding news and earnings related to the company, and develop a plan for adding or reducing the number of shares you hold in your portfolio to reflect changes in information about SpaceX's potential IPO.

Is EchoStar a Good Buy for 2026?

EchoStar has a unique offering compared to other listed companies: it has an extremely large investment in SpaceX combined with a great balance sheet and possible future value from both its spectrum and telecommunications assets. If the SpaceX IPO occurs in 2026 at an elevated valuation, the market may choose to reevaluate the value of EchoStar’s composite interest in SpaceX and choose to re-rate SATS shares. If the offering is delayed or conservatively priced, returns will then be dependent on internal development, legal issues, or any other monetization of assets. For investors who want a way to get public exposure to SpaceX with significant volatility tolerance, SATS stock is an excellent potential participation way. For investors who prefer a more operationally nimble approach to their own satellite service and defense-oriented technology investments, there are many other public companies that operate in the space industry that may be more appropriate for your time horizon, risk tolerance, and how you envision your exposure to space in your overall future value port