These Key Factors Are Driving DISH Network’s Stock Price
DISH Network’s fall in stock price
On May 15, 2017, DISH Network (DISH) stock closed at $61.51. It’s risen 6.2% YTD (year-to-date), and it’s fallen 4.5% since its 1Q17 earnings were announced on May 1, 2017.
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Factors driving DISH’s stock price
In 1Q17, DISH had revenue of $3.7 billion, a fall of 4% year-over-year (or YoY), and its net income fell ~6% YoY to $376 million. DISH was also the second-largest buyer at the FCC’s (Federal Communications Commission) recent 600 MHz (megahertz) incentive auction. DISH Network’s spectrum purchase has left its investors puzzled, giving rise to speculation that it could be acquired.
However, the possibility of DISH’s being acquired this year is slim considering AT&T’s (T) interest in Time Warner (TWX) and the possible merger discussions happening between Sprint (S) and T-Mobile (TMUS). It also appears that DISH could be in a transitional phase, as it’s focusing on connectivity and IoT (Internet of Things) technology.
DISH’s subscriber losses continued in 1Q17, with pay-TV subscriber losses of 143,000. At the end of the quarter, the company had 13.5 million pay-TV subscribers.
DISH makes up 0.07% of the SPDR S&P 500 ETF (SPY). SPY has an exposure of 4.4% to the computers sector.