Nokia (NYSE: NOK) is one of the oldest players in the stock market. Over the years, many competitors have left Nokia behind. However, stock market analysts believe that NYSE: NOK still has some excellent moves left.
For a while now, NYSE: NOK has had a hard time with the investors. However, with the 5G sweepstakes, Nokia seems to be the best alternative that does not have any geopolitical baggage. Slowly and steadily, NYSE: NOK has secured around 100 contracts. Even so, the stock market is still undermining Nokia stock.
Why Is Nokia (NYSE: NOK) Stock down?
Since 2019, Nokia (NYSE: NOK) stock has been trading near penny-stock. The company’s fifty-two weeks high is $5.28, and its fifty-two weeks low stands at $2.34, which happened in March. Since then, NYSE: NOK stock has been hovering between $4 and $5.
One of the keys to a potential NYSE: NOK Stock growth is the fact that it is located in Finland, and not China. With the current trade wars, there’s a lot of political baggage on companies with links to China.
Moreover, Nokia is looking to make big with 5G. Even though the competition is tough, NYSE: NOK is striving on. Especially with Nokia’s quality reputation, things seem to be looking up for the company.
Another factor that has led stock market analysts to put their favors over Nokia is that BT, one of the UK’s largest telecom companies, has announced Nokia (NYSE: NOK) as its major infrastructure provider.
BT CEO, Philip Jansen, states that the competitive and fast-moving market requires companies to choose the best technology providers.
As per CNBC, around 11,600 BT radio stations will receive 5G services and other products from Nokia.
For the 3rd quarter, Nokia (NYSE: NOK) secured around 17 fresh contracts. As per Yahoo Finance, TipRanks has put NYSE: NOK shares at around 15 percent for the 5G service market. The company’s stock market share was around 20 percent in 2019.
Another Opportunity For Nokia
It was reported that Nokia might provide 5G services and products to Verizon. This would have given NYSE: NOK stock a major boost. However, the uncertainty around it is instead weighing Nokia down.
In front of the entire stock market, Verizon went with Samsung, which affected Nokia (NYSE: NOK) stock severely.
While stock market analysts such as JPMorgan anticipated that Verizon would choose Nokia, the non-deal set Nokia back. However, we need to remember that Nokia still has deep relationships with Verizon.
Moreover, since the 5G sector is just opening up, it’s bound to increase in size. That means that there will be enough work for everyone. Adding to that, Nokia (NYSE: NOK) has an excellent record of customers. Furthermore, it does not possess any security risks like Huawei.