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Why EchoStar Bounced Back Today

TheMotleyFool

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(NASDAQ: SATS) shares were bouncing back today, up 10% as of 2 p.m. ET.

EchoStar's shares have been under severe pressure since the beginning of the year, but especially in the past week. That's because management decided to not make two separate interest payments on its debt, as it awaits a decision from the FCC regarding its spectrum. Management has a 30-day grace period to do so before the company is technically in default.

The spectrum debate has to do with the pace of EchoStar's 5G rollout, and is also indirectly linked up with Elon Musk's SpaceX.

Source Fool.com