Nokia Rekindles Retail Interest Amid Stonk-Blitz: What You Should Know About Its Prospects

Nokia Oyj NOK shares closed over 5% higher in Wednesday’s regular session amid a trend that saw retail investor favorites shoot upwards in parallel. 

What Happened: Nokia was at the sixth position among the ten trending stocks as listed by Stocktwits at press time — an indication that the 5G and networks company is regaining popularity online among retail investors.

See also: How to Buy Nokia (NOK) Stock

Positive news surrounding the company included steps it has taken to hasten the introduction of 5G services across Australia and an agreement with automaker Daimler AG DDAIF on licensing Nokia’s telecommunications technology.

Another shot in the arm for the Finnish firm could come from China’s exclusion of Telefonaktiebolaget LM Ericsson ERIC from upcoming 5G tenders in the East Asian country, as per Charter Equity Research analyst Edward Snyder, Smarter Analyst noted.

In a tit-for-tat response, China could move to exclude Nokia’s Swedish rival after a decision by Swedish Post and Telecommunications authority to bar Chinese vendors from 5G auctions in the country,  as per Smarter Analyst.

Why It Matters: Nokia shares have returned 39.4% since the year began and are considered to be stonks or shares favored by retail investors.

See Also: Nokia Can Breathe Sigh Of Relief As Lawsuit Over Defrauding Shareholders Dismissed

Stonks that shot up Wednesday include AMC Entertainment Holdings Inc AMC, which skyrocketed 95.22% to $62.55 in the regular session, and Blackberry Ltd BB which ran up 31.92% to $15.25 in regular trading. 

Retail investor forum WallStreetBets darling GameStop Corp GME ended the regular session higher by 13.34 at $282.24.

A Trefis Team report published by Forbes pointed out that Nokia’s networking segment has lower margins compared to its licensing operations but is the primary source of its sales. If the business is robust, it could help drive shares higher, which have sat out the big tech rally.

Trefis expects Nokia network revenue to rise from EUR 20.5 billion ($25.03 billion) in 2020 to EUR 21.1 billion ($25.76 billion) in 2021 and to EUR 21.5 billion ($26.25 billion) in 2022.

Zacks Equity Research noted Nokia has 165 commercial 5G deals with service providers and its 5G portfolio is gaining ground among enterprise customers that account for 12% of 5G deals, reported Yahoo Finance. 

As per Zacks, Nokia is on its way to achieving sustainable, profitable growth and technology leadership.

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