Nokia lost $8 billion of market cap after Q3 2019 report

The stock market reacted very unfavorably on Nokia’s third quarter of 2019 financial report. While business performance in the quarter was nothing to lose your mind on, the announcement of cutting forecasts for 2019/2020 and pausing dividend payout did cause panic on the stock market.

 

On the day the report hit the public, Nokia’s stock lost around 23% of its value on the Helsinki and New York Stock Exchange. On Friday, the day after, the price went down another 3%. The market cap graph on MacroTrends shows that Nokia opened the week with a $29.1 billion market cap and closed it at $21.16 billion. That’s a loss of nearly 8 billion dollars or around 27% caused by the announcements with the Q3 report.

Nokia will re-start dividend payout once the company hits €2 billion net cash position. The expected net cash at the end of the year is €1.5 billion. Nokia’s Chief Financial Officer Kristian Pullola clarified Nokia’s moves for Lightreading.com, that has an excellent coverage of all the numbers related to the current Nokia situation.