
Please try another search
Nokia (HE:NOKIA) may be a company that’s best-loved for the role it’s played in the formative years of mobile phones, but the Finnish communications giant has its sights firmly set on a future driven by the development of 5G technology. For a stock that’s recently become a meme favourite among Reddit-based retail investors, there could be plenty of growth on the horizon for Nokia.
2021 has been an excellent year for Nokia’s share price. Although the stock is regarded as a meme by many retail investors due to its prolonged popularity within Reddit forums like r/WallStreetBets, the company’s fundamentals are far stronger than many of the other meme stocks that have become retail favourites.
In mid-July, Nokia shares climbed further after the company announced to investors that it was set to lift its financial outlook for 2021.
The company noted that its business had continued to gain strength across Q2 of the year, which has helped to brighten its prospects for the rest of 2021 - with net sales among the range of revised metrics.
As a result, Nokia shares on the New York Stock Exchange climbed 7.8% prior to opening and popped by a peak of 9% to a total of $5.87. There’s little doubting that the company’s status as a favoured meme-stock bolstered Nokia’s outlook for the year, with Reddit and social media users opting to collaborate in buying and holding shares in the firm as hedge funds showed intent to short the stock whilst anticipating an upcoming decline.
"Our first-half performance has shown evidence of this in good cost control and also benefited from strength in a number of our end markets. We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year," noted Pekka Lundmark, president and CEO of Nokia.
Nokia’s intent towards embracing 5G technology has contributed to some market volatility in recent months. In late 2019, the company announced that it was pausing dividend payouts in a bid to raise investments for 5G. The risky move caused shares to fall some 21%, with the act of embracing the emerging technology causing a significant drop in the company’s bottom line.
However, since the troubling end to 2019, Nokia has been efficient in embracing emerging technologies - such as becoming a vocal supporter of O-RAN 5G architecture.
Nokia has also since launched its own 5G AirScale Cloud RAN solution that’s been built on vRAN2.0. The company also brokered a €400m 5G deal with Taiwan Mobile as a means of boosting its 5G adoption efforts.
Worsening economic outlook is hitting social media stocks, with Meta slumping Growth in ad revenue for pure-play digital platforms will fall this year For some analysts, the...
During the first half of the financial year to the end of March 2022, Lowland Investment Company (LON:LWI) lagged a modestly rising market due to its high weighting in mid and...
One UK stock that’s got my attention is Anglo-Eastern Plantations (LON:ANEA). The company produces palm oil, an edible oil used the world over, in everything from food...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.