Nokia: no news would be good news


Sometimes no news is good news. Nokia Corporation ( NOK , quote ) has issued guidance that profits for the first two quarters of 2012 will be worse than expected, driving the stock down nearly 15%.

[caption id="attachment_56287" align="alignright" width="220" caption="Lumia 900 sales are not yet helping Nokia"] [/caption]

In addition to falling profits , the Financial Times reports Nokia has also been embarrassed by a software bug in its new Lumia 900. The new phone is supposed to be a game changer  for the company, but the Easter Sunday launch did not go well, not least because many stores are closed on Easter.

Nokia released a patch for the software bug on April 13, three days ahead of schedule.

Even though Nokia has partnered with Microsoft ( MSFT , quote ), competition from high-end Samsung ( SSNLF , quote ) phones and cheaper Chinese models have been devastating for the stock. In the week following the launch of the Lumia 900, NOK fell 21.33%. Year to date, it is down 16.60%. For the last 52 weeks, it has fallen 51.15%.

The professional investor community is backing away as fast as it can. On April 12, Barclays downgraded the stock from Overweight to Weight with a target price of $4. On April 13, Zacks Equity Research downgraded Nokia Corporation to underperform.

The short float for Nokia Corporation is now 5.95%, a bearish sign. The trend is definitely not the friend of the shareholders of Nokia Corporation as the share price is double digits below the 20-day, 50-day and 200-day moving averages.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , International , Stocks

Referenced Stocks:

Emerging Money

Emerging Money

More from Emerging Money:

Related Videos



Most Active by Volume

  • $15.65 ▼ 1.82%
  • $109.27 ▼ 1.00%
  • $9.49 ▼ 0.84%
  • $102.16 ▼ 1.19%
  • $22.75 ▼ 7.26%
  • $42.61 ▼ 2.05%
  • $24 ▼ 2.08%
  • $16.82 ▲ 1.39%
As of 9/4/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by