Nokia: no news would be good news


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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 Nasdaq, Inc.

This article appears in: Investing , Stocks

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