- DISH Network Corp (NASDAQ:DISH) stock is up Thursday following reports of selling wireless plans for its nascent mobile phone service through Amazon.Com Inc (NASDAQ:AMZN).
- The arrangement can potentially give the telecom company's 5G rollout a critical lifeline, the Wall Street Journal cites knowledgeable sources.
- Dish stock's session volume reached 7 million vs. the average 100-day volume of 9.4.
- Dish is already a customer of Amazon's cloud-computing services.
- Also Read: Dish Comes Clean On February Hack: Affects Personal Info Of 300K Employees, Customer Details Unaffected
- Dish voiced the need for Apple Inc's (NASDAQ:AAPL) iPhone's operation on the company's new 5G network to tap the device's sizable market share.
- Dish and its affiliates doled out $30 billion on mobile spectrum licenses, spending the past three years installing a nationwide network of cell towers and software with the latest 5G technology from scratch.
- The potential deal allows Dish to market its service to millions of prospective customers and help Amazon expand its relatively small footprint in the consumer smartphone market.
- Amazon has previously discussed potential wireless business deals with Dish.
- Wireless plans sold through Amazon's e-commerce portal could eventually challenge rival cellphone carriers AT&T Inc (NYSE: T), Verizon Communications Inc (NYSE: VZ), and T-Mobile US, Inc (NASDAQ:TMUS) as they battle slowing subscriber growth following a pandemic-era boom.
- In May, Dish reported a first-quarter FY23 revenue decline of 8.6% year-on-year to $3.96 billion, missing the consensus estimate of $4.06 billion. EPS of $0.35 missed the consensus estimate of $0.36.
- The net decrease primarily resulted from the decline in revenue from its Pay-TV Wireless and Wireless segments.
- Price Action: DISH shares traded higher by 12.50% at $7.01 on the last check Thursday.
- Photo via Wikimedia Commons
Why Dish Stock Is Soaring Thursday