DISH Network Corp. shares popped this week as the satellite company officially started accepting sign-ups for its next-generation 5G network.
The company launched a website dubbed Project Genesis that asks interested users to share their zip codes and emails to get notified when DISH’s 5G service is available in their areas.
DISH has spent billions of dollars and multiple years buying up spectrum and other assets with the goal of getting into the wireless business. DISH closed on its $1.4 billion buy of Sprint's Boost Mobile, Virgin Mobile and Sprint-branded prepaid wireless businesses in July 2020. The divested businesses included more than 9.3 million customers, putting DISH into the retail wireless market for the first time. Those customers, as well as customers of DISH-branded wireless services, are provided full access to the combined T-Mobile US Inc./Sprint networks for seven years under a mobile virtual network operator arrangement.
In February, DISH executives said the company would launch a 5G network for its nascent retail wireless business in select markets by the third quarter of this year.
After the news, Pivotal Research Group analyst Jeffrey Wlodarczak upgraded his rating on DISH shares to "buy" from "hold" and raised his year-end 2021 price target to $60 from $10.
"We view our new target price as arguably conservative considering the significant upside potential in the DISH greenfield 5G wireless opportunity and to a much lesser extent from the likely inevitable merger with DIRECTV," Wlodarczak said in a research note.
The analyst noted that DISH is in the process of rolling out "a revolutionary cloud-native/software-driven 5G network" with Amazon.com Inc.'s Amazon Web Services Inc., where AWS will serve as the preferred cloud provider for DISH's upcoming 5G network. DISH will use AWS' infrastructure and services to build and deploy a stand-alone, cloud-based 5G Open Radio Access Network, touted as a telecom industry first.
"That should allow them/developers/AWS to relatively quickly develop 5G applications/services that have the potential to revolutionize wireless, particularly in enterprise markets," Wlodarczak said.
Shares in DISH closed at $41.16 per share on June 17, up 2.4% for the week to date.
In tech, Apple Inc. shares jumped 4% this week with the unveiling of Apple Podcasts Subscription, a subscription-based version of Apple Podcasts that allows creators and publishers to set pricing for each subscription of at least 49 cents per month.
Though analysts do not expect the new offering to be a significant revenue driver for Apple, they say it should help the company to take greater control of its ecosystem and potentially steal share from competitors.
"This service will further enable Apple to monetize its podcasting moat and ultimately we expect more exclusive content partnerships to be announced over the coming months to compete with Spotify in this quickly morphing podcasting arms race," Wedbush Securities analyst Dan Ives wrote in a report.
Shares of Apple closed at $131.79 apiece for the week ended June 17.
In another Big Tech development, shares of Amazon rose nearly 5% throughout the week. Jefferies analyst Brent Thill in a June 16 note added the e-commerce giant to the Jefferies Franchise Picks list with a "buy" rating and price target of $4,200.
Thill cited increased consumer reliance on Amazon’s platform for online shopping, as well as increased pandemic-driven usage of AWS services.
"For AWS, we believe work from home is shifting more workloads onto the Cloud, which is benefiting AMZN as the de facto infrastructure provider. We also expect the gap between reported and backlog growth to narrow over time, suggesting growth could further accelerate," the research note said.
Amazon closed at $3,489.24 per share for the week to date.
In the broader markets, the S&P 500 dipped when several members of the Federal Open Market Committee said they expect at least one interest rate hike to be implemented before 2023, a sign that inflation fears may tighten Federal Reserve policy sooner than expected. Shortly after the Fed's forecast was released on June 16, the S&P 500 fell by 0.7%; the benchmark U.S. Treasury 10-year yield, which moves inversely to prices, jumped from 1.49% to 1.58%; and the U.S. Dollar Index rose about 0.8%.
"dish" - Google News
June 19, 2021 at 01:00PM
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DISH rises on strong 5G reception; Apple jumps with subscription podcasts - S&P Global
"dish" - Google News
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