Benchmark Downgrades DISH Network to ‘Hold’ After Denials of Amazon Prime Wireless Deal

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DISH Network is a leading provider of satellite TV and related services in the U.S. and around the world. Recently, it has come under pressure after denying any involvement in a potential Amazon Prime wireless deal. As a result, Benchmark has downgraded the stock from a Buy to Hold rating. The speculation around the potential Amazon Prime wireless deal has put a damper on Dish Network ($NASDAQ:DISH)’s stock performance. After initial speculation of a partnership between the two companies, Dish Network denied any involvement in the deal which caused a sharp decline in its stock price.

In response, Benchmark downgraded the stock to ‘Hold’ citing the lack of clarity around the company’s plans for the future. The downgrade has put additional pressure on Dish Network as investors and analysts try to assess the risk of investing in the company. The downgrade is a reminder to investors that in times of uncertainty, caution should be taken when investing in a stock that may be affected by external events. As such, investors should keep an eye on future developments with the company as they may impact its stock price.

Market Price

On Tuesday, DISH NETWORK stock opened at $7.2 and closed at $7.5, a rise of 6.2% from the previous closing price of 7.1. This surge in stock prices came after Benchmark downgraded the company from a ‘Buy’ to a ‘Hold’ rating. The downgrade was in response to rumors that Amazon Prime Wireless had expressed interest in obtaining a wireless spectrum license from DISH Network which were later denied by both companies. Despite this news, many investors are still hopeful that DISH Network will be able to secure a strong partnership with another major player in the industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dish Network. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dish Network. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dish Network. More…

Key Ratios Snapshot

Some of the financial key ratios for Dish Network are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of DISH NETWORK‘s wellbeing. Our evaluation of the company’s financial and business aspects revealed that it is a high risk investment according to its Risk Rating. On further investigation, our team discovered three risk warnings in DISH NETWORK’s income sheet, balance sheet, and cashflow statement. These warnings signal potential problems with their finances that might make them a less attractive investment opportunity. If you want to know more about our findings, you will need to become a registered user at GoodWhale. More…

Peers

The company offers a variety of channels and packages for its customers. DISH Network Corp competes with other pay-TV providers such as Verizon Communications Inc, T-Mobile US Inc, AT&T Inc.

– Verizon Communications Inc ($NYSE:VZ)

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is based at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

As of 2022, Verizon has a market cap of 156.19 billion dollars and a return on equity of 20.79%. The company provides communications and entertainment services to consumers, businesses, and government agencies. Its consumer services include wireless voice and data plans, broadband internet, FiOS TV, and telephone services. Verizon’s business services include networking, data storage, and security solutions, as well as professional and managed services. The company also owns and operates Verizon Media, which consists of Oath Inc. (formerly AOL Inc.) and Yahoo! Inc.

– T-Mobile US Inc ($NASDAQ:TMUS)

T-Mobile US Inc is a leading wireless communications provider in the United States. The company has a market capitalization of 186.35 billion as of 2022 and a return on equity of 4.31%. T-Mobile US Inc provides wireless voice, messaging, and data services to consumers and businesses in the United States. The company offers a variety of wireless plans and devices, including smartphones, tablets, and other mobile devices. T-Mobile US Inc also provides wireless broadband services, including home Internet and mobile hotspot services. In addition, the company offers a variety of value-added services, such as device protection, international calling, and data roaming.

– AT&T Inc ($NYSE:T)

AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. AT&T Inc. has a market cap of 130.85B as of 2022 and a Return on Equity of 17.05%. The company is the world’s largest provider of pay TV, with 130.4 million subscribers as of the end of 2016. It also provides communications and data services to businesses and consumers in more than 150 countries. AT&T is the second-largest provider of mobile telephone services and the largest provider of fixed telephone services in the United States.

Summary

DISH Network has recently seen its stock price increase after executives denied any potential deal with Amazon Prime Wireless. The company’s stock has generally been on an upward trend since the beginning of the year, and this recent news has caused further gains. Analysts have noted that the stock is currently trading at a reasonable price, and that the company remains attractive for investors due to its broad range of services, secure financial position, and strong customer base. Additional positive catalysts for the stock could include strategic partnerships and continued expansion of its offerings.