From Nasdaq: 2025-05-30 16:34:00

Shares of EchoStar (NASDAQ: SATS) plummeted 12.1% after the company missed a $326 million interest payment on senior notes secured by its wireless spectrum. The payment was due today, but the company cited ongoing uncertainty from its dispute with the FCC over the spectrum license. EchoStar, owned by Charlie Ergen, is facing challenges in launching a 5G network due to declining business. The FCC is reviewing the spectrum license, which SpaceX also wants to use. Despite the missed payment, EchoStar has a 30-day grace period before default.

Investors are wary as the missed payment raises concerns about potential bankruptcy. EchoStar is trying to pivot its business away from pay-TV towards Boost Mobile’s 5G and satellite services. The company’s attempt to build a 5G network using its spectrum has been slow, leading to the FCC review. The missed payment is voluntary for now, but the unresolved spectrum issue poses a risk. The situation calls for caution until there is more clarity on EchoStar’s turnaround strategy. The Motley Fool’s top 10 stock picks don’t include EchoStar, suggesting better investment options for investors.



Read more at Nasdaq: Why EchoStar Plunged Today | Nasdaq