To be fair, the stocks of NOK did peak over the summer when the technological markets had been expecting 5G revenue to grow without any hindrances. But, the company did meet with a few setbacks- Verizon was lost to a newcomer which shook the confidence of the investors. Also, the stocks of Samsung won quite a big deal in network supply. This inadvertently led to the tech giant offering a major discount. As it is currently, the stocks of NOK have been a disappointment after they peaked in August. But, the strong prospects of the company have been coming in a very scraggly fashion.
Most of the investors should be taking advantage of the weak quarterly report of the company to get more shares. Ericsson, incidentally, has been trading in at around twice the market cap of the shares of NOK. And this simply implies that NOK wouldn’t be able to hold on to their discount in the market.
Deals Lift Nokia (NOK) Stock
The last month did see the stocks of NOK rebound by around 20% ahead of several supply deals. With the UK banning the installation of Huawei, it does open up the potential of Nokia to grab the new market scene in the region. Both NOK and Ericsson have covertly picked up several contracts that could possibly replace the 5G equipment of Huawei.
Let’s just say this- the stocks of NOK are quite compelling because they have a much deeper value. If an investor is patient enough, the very lack of quarterly earnings at a consistent rate is sure to provide a discount. And this is quite praiseworthy despite their shares rallying at 18.5% after the post-earnings selling. This is precisely why most investors should consider buying the NOK stock.