DISH climbs on strong 5G reception; Apple jumps with subscription podcasts

The shares of DISH Network Corp. erupted this week as the satellite company officially began accepting registrations for its next-generation 5G network.

The company has launched a website dubbed Project Genesis that asks interested users to share their zip codes and emails to be notified when DISH’s 5G service is available in their area.

DISH has spent billions of dollars and several years to purchase spectrum and other assets in an attempt to enter the wireless business. DISH closed its $ 1.4 billion purchase of prepaid wireless companies Boost Mobile, Virgin Mobile and Sprint from Sprint in July 2020. The divested businesses included more than 9.3 million customers, placing DISH in the market. wireless retail for the first time. These customers, along with DISH branded wireless customers, are granted full access to the T-Mobile US Inc./Sprint combined networks for seven years under a Mobile Virtual Network Operator Agreement. .

In February, DISH executives said the company would launch a 5G network for its nascent wireless retail business in select markets by the third quarter of this year.

After the news, Pivotal Research Group analyst Jeffrey Wlodarczak raised his rating on DISH shares to “buy” from “hold” and raised his year-end 2021 price target to $ 60 from $ 10 .

“We consider our new target price to be arguably conservative given the significant upside potential of DISH’s 5G wireless opportunity and, to a much lesser extent, the inevitable and likely merger with DIRECTV.” Wlodarczak said in a research note.

The analyst noted that DISH is deploying “a revolutionary cloud-native / software-driven 5G network” with Amazon Web Services Inc. from Inc., where AWS will serve as the preferred cloud provider for DISH. 5G network to come. DISH will use AWS infrastructure and services to build and deploy a cloud-based, autonomous 5G open radio access network, touted as a first in the telecommunications industry.

“This should allow them / developers / AWS to relatively quickly develop 5G applications / services that have the potential to revolutionize wireless, especially in the enterprise markets” said Wlodarczak.

Shares of DISH closed at $ 41.16 per share on June 17, up 2.4% for the week to date.

In tech, shares of Apple Inc. have jumped 4% this week with the unveiling of Apple Podcasts Subscription, a subscription version of Apple Podcasts that allows creators and publishers to set a price for each subscription of at least 49 cents per month.

While analysts don’t expect the new offering to be a major source of revenue for Apple, they believe it should help the company gain more control over its ecosystem and potentially steal shares from its competitors.

“This service will allow Apple to further monetize its podcast moat and we expect more exclusive content partnerships to be announced in the coming months to compete with Spotify in this rapidly evolving podcasting arms race,” wrote Dan Ives, analyst at Wedbush Securities, in a report.

Apple shares closed at $ 131.79 each for the week ended June 17.

In another Big Tech development, Amazon shares 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 note and a price target of $ 4,200.

Thill cited increased consumer dependence on Amazon’s platform for online shopping, as well as increased use of AWS services due to a pandemic.

“For AWS, we believe that working from home moves more workloads to the cloud, which benefits AMZN as a de facto infrastructure provider. We also expect the gap between reported growth and backlog growth to narrow over time, suggesting that growth may accelerate further. says the research note.

Amazon has closed at $ 3,489.24 per share for the week to date.

In broader markets, the S&P 500 fell as several members of the Federal Open Market Committee said they expected at least one interest rate hike to be implemented before 2023, a sign that inflation fears could tighten Federal Reserve policy sooner than expected. Shortly after the Fed’s forecast was released on June 16, the S&P 500 fell 0.7%; the benchmark 10-year US Treasury yield, which moves in the opposite direction of price, jumped 1.49% to 1.58%; and the US dollar index rose about 0.8%.

About Cedric Lloyd

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