AMZN - Why DISH Network Stock Popped Then Dropped This Week
2023-07-28 07:59:00 ET
Shares of DISH Network (NASDAQ: DISH) initially climbed more than 9% early Wednesday, according to data provided by S&P Global Market Intelligence . The stock then gave up those gains to trade lower on the day and lost further ground on Thursday after the telecom provider announced a new partnership with Amazon.com (NASDAQ: AMZN) to sell its Boost Infinite Unlimited wireless postpaid plan to Amazon Prime members. Amazon shares were down slightly on the news.
Starting this week, Amazon Prime members will be automatically pre-qualified to sign up for Boost Infinite's $25/month unlimited wireless plan, with the price locked in for life. They'll also receive a 20% discount off a SIM kit and a $25 bill credit toward their first month of service with Boost Infinite.
With around 200 million Amazon Prime members as of this writing, the market's positive knee-jerk reaction to the announcement was understandable. DISH will enjoy a massive sales funnel for prospective new subscribers looking for an affordable unlimited postpaid wireless service, while Amazon can tout it as another modest perk for its Prime members.
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Why DISH Network Stock Popped, Then Dropped This Week