Last year’s Q3 business result didn’t do any good for the price of Nokia shares. While the results weren’t that bad, the announcement of cutting forecasts for 2019/2020 and pausing dividend payout caused panic on the market. The year ended pretty well for Nokia, but the stories about the takeover by an American tech companies shook the trust of investors in Nokia’s stocks. However, Nokia wasn’t distracted by the fall of its stock price, since financially was well prepared for the problems caused by COVID-19 pandemic, and its troubles with the 5G chipset are taken care of. On top of that, Huawei is still struggling with gaining the trust of the customers around the world, and Nokia joining the open RAN initiative will put Nokia in the spotlight. Also, Nokia Mobile is launching its first 5G phone with a plan to bring 5G connectivity to even lover price range, which is good for the Nokia brand. If we take all that, and the return of the financial world to the normal state, it was expected to see the price of Nokia’s stocks going up. Also, a new Chair and CEO are coming, which will create some new investments.
Nokia could be thinking of selling the networking business and just become a software company, which might not be such a bad idea, but networking is a core business of Nokia and selling that would change it once again. Nokia needs products that will keep the brand alive, and networking did give us some nice ones like Beacons, which are pretty much unique on the market. Maybe the new CEO is planning on launching more mass-market products to increase the brand value a bit more.