Nokia is holding onto its life right now as investor sentiments turn sour towards NOK stock. It’s just a matter of another miss that the investors will let go of NYSE: NOK. Even so, Nokia can’t say that it didn’t have a good run or that the investors didn’t give it a fair chance.
Nokia Misses 3rd Quarter Expectations
In October 2020, as the 3rd quarter came to an end, Nokia stock plunged to unprecedented lows. They missed the stock market estimates by a huge number. So, what’s the problem? Why is Nokia, an experienced and established company, disappointing its investors time and again? The answer seems to be in NOK stock’s strategic approach. It keeps changing its outlook and does not seem focused. However, we must note that it has started gaining again. But, will it be able to make up for all the post-earnings losses?
If we take a look at the third-quarter problems, we will see that the issues are not new. For one reason or the other, NOK stock has been consistently unable to bring back shareholders’ investment. And even though there are some loyal stock market investors, many are growing bearish towards Nokia. It’s a downward trend for the company for the last 4 weeks.
Does NOK Stock Have Enough Stock Market Credibility To Survive?
Honestly, no. The company has failed to recuperate from its past week’s misses. At this point, Nokia has lost all its stock market credibility.
Moreover, as we mentioned before, these problems are not new. In fact, for the same quarter last year, Nokia saw similar reports. NOK stock had expected around 0.25 EUR EPS for the 2019 third quarter. Investors expected that the numbers would rise to 0.37 EUR by 2020.
It pars well without mentioning that Nokia did not meet its stock market expectations. In fact, it’s seeing a further fall in the same quarter this year. The company cut its guidance for both years. What’s more? Even if we include the dividends, NOK stock has lost around 44 percent in the last decade. Additionally, the five year and three-year returns are expectedly negative as well.
Compared with other companies in the same industry, NOK stock has miserably failed as others have succeeded.
Interestingly enough, Nokia is beginning to gain around 17 percent. Even so, given the company’s track record, is it a good idea to hold onto NOK stock? Experts don’t think so. If we are right, the company will repeat its trend that it has been following for over a decade now.
The best way for NOK stock to get out of this swamp is by investing more in its development and research programs. Even though NOK stock is comparatively cheap, the company is not a safe bet at the moment.