Why Nokia Stock Hit A New 52-Week Low Today

Nokia Oyj NOK shares are trading lower by 2.8% to $3.50 Tuesday morning in sympathy with Ericsson, which reported a third-quarter revenue miss.

What Happened?

Ericsson stock is down Tuesday morning after reporting its third-quarter FY23 results, which showed a 5% YoY sales decline to SEK 64.5 billion ($5.96 billion), missing the consensus of $6.27 billion.

Organic sales for the group declined by 10% YoY, with Networks' organic sales decreasing by 16%, partially offset by 5% growth in Cloud Software and Services and 11% in Enterprise...Read More

Why It Matters

When a major player in an industry, such as Ericsson, reports disappointing financial results, it can significantly impact investor sentiment and perception of that industry as a whole. Investors tend to view such results as a reflection of broader industry conditions.

As a result, they may become more cautious about investing in any company within the same sector, including Nokia. In essence, Ericsson's underperformance can raise concerns about the industry's health.

According to data from Benzinga Pro, Nokia has a 52-week high of $5.11 and a 52-week low of $3.50.