Nokia Oyj (NYSE:NOK) closed the day at $6.30 on a volume of 18.3Million shares. Here is latest update from the company.
Despite the potential benefit, which Nokia was eyeing from the much-publicized trade war of the 5G provider, it shares till lost. In pre-market trading, the company’s shares slipped 1%. A rejection from the French government to restrict Nokia’s competitors occasioned the slip. Had the motion gone through, Nokia would not encounter any competition from the likes of Huawei and ZTE. This would in return benefit Nordic communications leaders Nokia and Ericsson.
From the comments made by French European Affairs Minister Nathalie Loiseau, the government seems very unhappy with the restriction on competitors. Loiseau stressed the fact that Europe would have to put teamwork together to restrain China-sponsored data theft. The fury has led the government to ask for more time to review the motion.
Long-sustained investment in 5G technology is the basis for Nokia’s preference
There is a hyped preference for Nokia, its continued investment in 5G technology winning the hearts of many. This has put so much pressure on its competitor given that 5G network is reportedly 100 times faster than current wireless networks. Word has it that it is also holding a promise to have it used in other futuristic technologies such as streaming, and self-driving cars.
However, the impending motion could also reopen a significant tailwind for the company’s stock. “If the move is reconsidered and instituted at a European level, it could be a major tailwind to boost the paltry stock price of European telecoms like Nokia, which sits at around $6 per share on Thursday.” This is according to an official at the French finance ministry.
Despite the slump in its stock, Nokia’s deal win rate seems very good and significant
The company may have suffered a slide with its shares. The profit of its core networks may also have declined in the quarter as a result of price pressure. However, the Chief Executive Officer Rajeev Suri says that there is still a lot of light ahead.
Suri claims that there deal win rate looks all rosy as the 5G projects progress. The Finnish company is also looking up to the recent success in some of its key early 5G markets such as China and the United States.