By Andrew Bary
EchoStar has emerged as a leading way to get in on the very hot SpaceX initial public offering. On Tuesday, SpaceX filed for the IPO, with pricing expected by the middle of June. The IPO could value SpaceX at $1.5 trillion to $2 trillion.
EchoStar stock has doubled since September, when it swapped some of its wireless spectrum for a 2% stake in Elon Musk's SpaceX, closing the week at $125. TD Cowen analyst Gregory Williams raised his price target to $155 from $129 a share on May 17. EchoStar sold the spectrum to SpaceX for $11.1 billion of SpaceX stock valued at $212 a share, which Barron's estimates at 52 million SpaceX shares.
In late 2025, SpaceX was valued close to $450 billion assuming more than two billion shares outstanding. The share count rose with its purchase of Musk-controlled xAI for $250 billion earlier this year. Williams values EchoStar at $155 a share on a sum-of-the-parts basis. At a $1.75 trillion SpaceX valuation, he sets EchoStar's SpaceX equity stake at $31 billion, or, by Barron's estimate, some $600 a share. Recent SpaceX private market transactions have reportedly been closer to $650 a share.
EchoStar has spectrum assets, a satellite TV business, and cash. There are risks. EchoStar isn't a pure SpaceX play and CEO and controlling shareholder Charlie Ergen calls the shots. If SpaceX stock falters, EchoStar could drop. But if Williams is right, there's more upside for EchoStar, especially if SpaceX rockets to $2 trillion or more.
Write to Andrew Bary at andrew.bary@barrons.com
Last Week
Markets
Inflation was back on investors' minds as the week began, with government bonds selling off around the world and yields surging. Thirty-year Treasury yields hit highs not seen since 2007. President Trump threatened to bomb Iran, then said he's holding off as Persian Gulf allies pursue talks. Oil prices fell. Stocks sank, then soared as yields eased on Wednesday ahead of Nvidia earnings. The S&P 500 index saw its eighth straight week of gains, and the Dow industrials hit a record high on $2 billion in federal incentives for nine quantum computing companies. On the week, the Dow was up 2.1%; the S&P, 0.9%; and the Nasdaq Composite, 0.5%.
Companies
Nvidia had another record quarter, beating on earnings and guidance, but shares fell. SpaceX filed for its initial public offering under the ticker SPCX, seeking to raise over $75 billion, easily the biggest ever; Goldman Sachs leads the underwriting. A jury decided that Elon Musk waited too long to sue OpenAI for going commercial and tossed the case, clearing the way for an OpenAI IPO. Musk said he'll appeal. Alphabet's Google and Blackstone agreed to set up an artificial-intelligence cloud group.
Deals
Florida's NextEra Energy agreed to acquire Virginia's Dominion Energy in a roughly $67 billion all-stock deal, the biggest merger tie-up this year so far. The deal creates the world's largest regulated utility... Estée Lauder and Spain's Puig Brands ended merger talks.
Next Week
Monday 5/25
Equity and bond markets are closed in observance of Memorial Day.
Tuesday 5/26
The Conference Board releases its Consumer Confidence Index for May. Consensus estimate is for a 92 reading, roughly one point less than in April. Consumer sentiment remains near five-year lows despite a record-high stock market.
Wednesday 5/27
Agilent Technologies, HP Inc., Marvell Technology, and Salesforce report quarterly results on Wednesday, followed by Costco Wholesale and Dell Technologies on Thursday.
Thursday 5/28
The Bureau of Economic Analysis releases the personal consumption expenditures price index for April. Economists forecast a 3.8% year-over-year increase, three-tenths of a percentage point more than in March. The core PCE price index, which excludes volatile food and energy prices, is expected to rise 3.3%, compared with 3.2% previously. If those estimates prove correct, it would be the highest annual change since May 2023 for the PCE price index, and October 2023 for the core PCE.
The Numbers
1.3 B
The rise in Africa's population since 1950. Africa is the only world region with fertility above replacement rate.
$45 B
How much more Americans spent on gasoline and diesel during the Iran war than the same period a year earlier.
30%
Forecast for the percentage of 2026 global sales of electric vehicles and plug-in hybrid cars, from 25% in 2025.
6.51%
The average rate on a 30-year fixed-rate mortgage this past week, the highest since last August's 6.56%.
Write to Robert Teitelman at robrt.teitelman@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 22, 2026 19:44 ET (23:44 GMT)
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