EchoStar's stock surged 5.47% in after-hours trading on Tuesday, as investors reacted to positive developments regarding the company's significant stake in SpaceX.
The satellite company's transformation from a spectrum-focused business to one holding a massive stake in Elon Musk's SpaceX has captured investor attention. With SpaceX preparing for its initial public offering and boosting its target valuation to more than $2 trillion, EchoStar shares have become an attractive proxy investment for ordinary investors seeking exposure to the rocket company before it goes public.
EchoStar's SpaceX stake is now estimated to be worth about $32 billion, representing approximately 90% of the company's entire market value. This substantial holding creates significant upside potential for shareholders as SpaceX moves closer to its market debut.
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