2025-04-24 11:40:31 ET
Summary
- Nokia's Q1 results missed expectations, causing a 9%-10% drop in shares, but the year-long uptrend remains intact, and NOK stock offers a solid dividend yield.
- CEO Justin Hotard focused on capital allocation for efficiency and growth, emphasizing opportunities in hyperscale and AI data centers despite longer revenue cycles.
- Nokia's partnership with T-Mobile and the Infinera acquisition present growth opportunities in U.S. markets, particularly in network infrastructure and optical connectivity.
- Despite today's selloff, I maintain a "hold" rating for NOK stock.
In the previous quarter , Nokia Oyj ( NOK ) reported strong results. The company posted earnings and revenue that beat expectations. Cash flow strengthened enough to allow the firm to buy back shares and commit to its dividend policy . However, Nokia did not post strong enough results to justify a ratings upgrade . Since then, NOK stock returned 4.35%, beating the S&P 500’s (SP500) loss of 10.38% at the time of writing....
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For further details see:
Why Nokia Is A Hold With Warnings After Q1 Results
