Why Is Nokia Stock Trading Lower Tuesday?
Portfolio Pulse from Anusuya Lahiri
Nokia Corp (NYSE:NOK) stock is trading lower due to rival Ericsson (NASDAQ:ERIC) securing a major deal with AT&T Inc (NYSE:T) for Open RAN deployment. Ericsson's five-year deal involves manufacturing 5G equipment in Texas for AT&T's network, which aims to cover 70% of its U.S. wireless traffic with ORAN technology by late 2026. Nokia's Q3 FY23 results showed a 20% sales decline and an EPS below consensus, contributing to a 36% YTD stock value loss. NOK shares fell 4.43% to $3.02.
December 05, 2023 | 6:00 pm
News sentiment analysis
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POSITIVE IMPACT
Ericsson's stock may see a positive impact after securing a major 5G deal with AT&T, highlighting its competitive edge in the telecom industry.
Ericsson's win of the AT&T deal is a significant positive development, likely to boost investor confidence and potentially lead to a short-term uptick in its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
AT&T's investment in Open RAN technology through the deal with Ericsson may be viewed positively as a strategic move to modernize its network, potentially impacting its stock.
While the deal with Ericsson is a positive step for AT&T's network evolution, the immediate impact on the stock is uncertain as the benefits are more long-term strategic.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Nokia's stock is trading lower after Ericsson won a significant deal with AT&T for Open RAN deployment, overshadowing Nokia's capabilities in the 5G space.
Nokia's stock is likely to face downward pressure in the short term due to the negative sentiment from losing a significant deal to a key competitor, Ericsson, and disappointing Q3 financial results.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90