Why Is Dish Stock Trading Higher Wednesday?

DISH Network Corp DISH stock is on a high Wednesday as it looks to start selling its premium wireless service on Amazon.com Inc AMZN later this week.

Boost Infinite, the first postpaid mobile service from Dish, offers unlimited access for $25 a month, Bloomberg cites familiar sources.

Lacking its chain of stores, Dish has been selling Boost Infinite online and could benefit from broader exposure on Amazon.

Also Read: Amazon Negotiating With Dish, Verizon, T-Mobile For Selling Wireless Plans: Report

In 2021, the telecom company enlisted Amazon Web Services cloud software and equipment to run core elements of its 5G network under development.

Amazon already sells SIM cards for Dish's Boost Mobile prepaid service along with plans from Mint Mobile, which agreed to be acquired by T-Mobile US Inc TMUS, and Tracfone, which Verizon Communications Inc VZ acquired in 2022, and smartphones.

Dish aims to transform from a satellite TV operator into a wireless data service provider, but the process has been expensive and still requires more funding.

Dish Chairman Charlie Ergen has told investors that Dish's Boost Infinite service will prove its value in the market and help address the company's financial situation.

Amazon's deal could act as a relief for the wireless industry in the form of wholesale revenue and traffic to newly expanded 5G networks. 

Price Action: DISH shares traded higher by 9.33 at $8.44 premarket on the last check Wednesday.