EchoStar Corporation (SATS) is having quite the moment. Shares climbed again Thursday as investors continue digesting what could be a windfall scenario: the satellite company's massive stake in SpaceX might be worth a lot more than anyone initially thought.

Here's the setup. Back in September, EchoStar sold spectrum licenses to SpaceX and received $8.5 billion in SpaceX stock as payment. At the time, SpaceX was valued at roughly $400 billion. Not a bad deal, right? But according to Bloomberg, SpaceX is now exploring a potential IPO with a valuation around $1.5 trillion. Do the math, and suddenly EchoStar's stake could be worth substantially more.

Why SpaceX Valuation Keeps Climbing

Much of SpaceX's momentum stems from Starlink, which has seen impressive growth particularly in its Business-to-Business segment. But the really interesting development is what might come next: data centers in space. Elon Musk appeared to confirm such plans in a post on X this week, and he's far from alone in thinking about this.

Google's Project Suncatcher is exploring a network of solar-powered satellites, and Jeff Bezos' Blue Origin is working toward orbital data centers. The competition is heating up because traditional data center space on Earth is being consumed at a blistering pace, driven largely by the infrastructure demands of artificial intelligence. McKinsey analysis projects that companies will invest nearly $7 trillion globally in data center infrastructure capital expenditures by 2030. When you're running out of room on the ground, looking up starts to make sense.

Technical Picture Shows Strength, But Maybe Too Much

From a technical standpoint, EchoStar is showing powerful bullish momentum. The stock is trading 40.7% above its 20-day simple moving average and a remarkable 143.7% above its 200-day SMA. Over the past 12 months, shares have skyrocketed 348.76%, rewarding anyone who held through this run.

But here's the catch: the RSI currently sits at 87.59, which puts the stock firmly in overbought territory. While the MACD remains above its signal line confirming continued bullish momentum, that overbought reading suggests traders should exercise some caution. A pullback wouldn't be surprising given how far and fast the stock has moved.

Currently, there aren't clearly defined support or resistance levels, making it tricky to identify obvious entry or exit points. If the stock approaches its recent swing high, selling pressure could emerge, while any significant drop would likely lead to a search for new support levels.

SATS Price Action: Shares were trading up 2.13% at $106.20 at the time of publication.