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Why DISH Stock Soared on Wednesday

By Daniel Sparks - Apr 21, 2021 at 4:24PM

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A partnership with Amazon has DISH investors excited.

What happened

Shares of communications services company DISH Network (DISH -1.84%) jumped sharply on Wednesday. Shares rose as much as 13%. As of market close, however, the stock was up 11%.

The stock's gain was driven by an announcement that DISH and Amazon's (AMZN 0.73%) cloud computing business -- Amazon Web Services (AWS) -- formed a partnership for a 5G network.

A chart with a red line pointing up.

Image source: Getty Images.

So what

DISH said it has selected Amazon Web Services as its preferred cloud provider. In addition, it will construct a 5G network on AWS. DISH and Amazon "will work to transform how organizations and customers, including AWS and Amazon, order and consume 5G services or create their own private 5G networks," DISH said in a press release on Wednesday morning.

Now what

DISH said that this will be the first 5G network to run on the cloud, enabling "agile and cost-effective operations while seeking to redefine the practical applications of 5G."

The partnership will not only help strengthen DISH's 5G offering but it may also solicit more developer interest in the network. As DISH said in its press release about the deal, working with AWS simplifies the process for developers creating 5G applications.

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Stocks Mentioned

DISH Network Corporation Stock Quote
DISH Network Corporation
DISH
$18.12 (-1.84%) $0.34
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$114.33 (0.73%) $0.83

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