|Bid||5.15 x 45900|
|Ask||5.16 x 28000|
|Day's Range||5.12 - 5.17|
|52 Week Range||4.71 - 6.65|
|Beta (3Y Monthly)||0.00|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.22 (4.38%)|
|1y Target Est||6.62|
There's a simple bull case for Nokia (NYSE:NOK) stock at the moment. 5G rollouts worldwide should drive demand growth for Nokia products. The company itself is projecting sharp earnings growth in 2020. And NOK stock is cheap, at 11.7x the midpoint of 2020 EPS guidance.Source: RistoH / Shutterstock.com That said, there's also a simple bear case for Nokia stock: we've been here before. NOK stock seemingly has been a turnaround play for most of this decade - and had similarly impressive near-term catalysts along the way.None of those catalysts have reversed the trend. NOK stock is down 40% over the past five years, and has lost two-thirds of its value in the last decade. Maybe this time is different - but the history of the tech industry, too, suggests a difficult path to upside, even with a current valuation that looks rather cheap.InvestorPlace - Stock Market News, Stock Advice & Trading Tips NOK Stock Has Been Here BeforeAs I detailed earlier this year, Nokia has had chances to drive growth -- and reverse the narrative surrounding the stock. The $7 billion sale of the company's phone business to Microsoft (NASDAQ:MSFT) turned out to be a brilliant deal. Microsoft wound up losing at least $8 billion, and finally exited at a sale price of just $350 million. Yet the huge cash infusion did little for NOK stock. * 7 Momentum Stocks to Buy On the Dip Indeed, Nokia used that cash to help bankroll its acquisition of Alcatel-Lucent, which was to make the company a networking giant. That thesis didn't pan out. The company then re-entered the phone business. That plan hasn't worked.The story now is 5G. An admittedly strong second quarter earnings report contained positive news about customer retention in the shift from 4G. Nokia expects the full benefit to start hitting its P&L in 2020. And the staggered pace of the global rollout suggests that demand should continue for years to come.That said, Nokia already has admitted that it will struggle to hit its 2019 EPS guidance. Wall Street, for what it's worth, is betting against 2020 projections as well. Consensus of $0.40 is below the company's range of €0.37-€0.42 ($0.41-$0.45). The story is attractive -- but it's been attractive before. For this entire decade, Nokia simply hasn't been able to fulfill its potential. Is Nokia Stock an Outlier in Tech?To be fair, it's not easy to execute a turnaround, particularly in tech. There are no shortage of companies who, like Nokia, have struggled to adapt.There have been some winners. Microsoft itself is the most obvious one. It was only six years ago that Microsoft stock had traded sideways for a decade. Earnings growth had been minimal for years. Microsoft is now the most valuable company in the world.But Microsoft is a software play. In hardware, products can become 'commoditized'. And competition from China, in particular, is much stiffer. Indeed, Huawei has taken significant market share, with its political worries another potential tailwind for NOK stock.And in hardware, turnarounds have been difficult. IBM (NYSE:IBM) touched a nine-year low late last year. Oracle (NYSE:ORCL) has returned 9% over the past two years while broad markets have risen sharply. Blackberry (NASDAQ:BB) has been a perpetual "next year" story as both a hardware play and, more recently, a software play. Post-split gains for Hewlett Packard Enterprise (NYSE:HPE) have stalled out. Nokia rival Ericsson (NASDAQ:ERIC) is down 37% over the past five years, a performance in line with that of Nokia stock.There's really only old-line large-cap hardware play that has driven consistent gains: Cisco Systems (NASDAQ:CSCO). And that company has scale and market dominance that Nokia simply doesn't have.To be sure, history alone doesn't suggest that NOK stock can't rally this time. There is an opportunity in 5G. The hit to Huawei's reputation at least weakens a key competitor. And Nokia stock is cheap enough if guidance is hit. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars But NOK also is a classic "this time is different" case. And as the old saw goes, those are the four most dangerous words in investing. That's been true in the past for Nokia and many similar tech plays. It could be true this time as well.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post History Suggests Nokia Stock Will Stay Stuck appeared first on InvestorPlace.
Ericsson's (ERIC) customers in China will benefit through the technology leadership, speed and capacity advantages that its automated smart factory offers.
The acquisition of RF360 Holdings allows Qualcomm (QCOM) to provide its customers with a complete end-to-end solution from modem to antenna.
Motorola's (MSI) new innovation center will likely provide an opportunity for students and employees to make valuable contributions to it and broader tech community.
With CommScope's (COMM) new Smart Media Device and IP client platforms, operators now have an enhanced portfolio of Reference Design Kit Video Accelerator solutions, with a range of capabilities.
(Bloomberg) -- The next generation of telecommunications technology could be the key to ending years of stagnation in the industry. But it’s also set to create a difficult dilemma for European phone companies.Carriers shelled out $80 billion to power the world’s antennas last year, according to Nokia Oyj. The prospect of having to raise spending on electricity – energy demand could triple with the introduction of 5G equipment, according to industry body GSMA – won’t sit well with phone companies that are already struggling to pay their dividends. At the same time, firms such as BT Group Plc and Vodafone Group Plc have pledged to slash emissions, and that will require a rapid shift to renewable energy.Just as carriers are about to roll out vast quantities of power-hungry gear, they’re also promising to save the planet. And funds are tight. Accomplishing everything at the same time could be a tall order.“If they have set up ambitious targets for overall power consumption and CO2 emissions, those could potentially be in conflict when they start to roll out 5G,” said Jerker Berglund, industry consultant at JB Sustainable Approach AB. “Reducing total power consumption is going to be a challenge.”5G could unleash a 1,000-fold jump in data demand for connecting factories and cars and supercharging mobile devices, according to the GSMA. That’s an irresistible sales prospect for a telecom industry whose revenues have yet to recover from a slump that started in 2015.Next-generation antennas and masts can be 10 times more energy efficient than 4G’s. However, these power savings could get swamped by the surge in demand for new applications. 5G will link up billions of things that have never been connected before. To accommodate all these new connections, masts might have as many as 128 antennas, versus just four or eight on a typical 4G mast. Bouncing signals through cities may require thousands of transmitters and receivers to be bolted onto rooftops and street furniture. This looks like it will all require a lot more bandwidth, and a lot more power.What’s more, carriers can’t afford the cost of swapping out all their equipment at once, Berglund said. The rollout will have to happen gradually, so many masts will still carry less efficient 4G, 3G and 2G antennas alongside 5G ones. This situation could last for years – some 3G kit is still in place 18 years after that technology was introduced.This article is part of Covering Climate Now, a global collaboration of more than 250 news outlets to highlight the climate change story.Electricity already makes up about a third of carriers’ average operational costs, according to Nokia, and raising this will pressure balance sheets when the industry isn’t in a good place to cope. Vodafone has cut its dividend to conserve cash to pay for spectrum and capital investment. Bank of America Merrill Lynch analysts said Monday they expect BT to slash its dividend by as much as 40% to fund capital expenditure and price cuts.“As we consume more, power’s going up, and the industry is trying to bring that down as much as possible,” said Henry Calvert, head of future networks at the GSMA, the mobile industry trade body. “There’s a lot of activity in the industry about making the power we use more efficient.”But whatever fixes carriers make to lower energy bills – sharing networks, getting masts to autonomously power down at times of low data demand, introducing “beam-forming’’ so smart antennas can pinpoint devices instead of pumping out data indiscriminately – the surge in power usage creates a challenge for meeting emissions goals.Deutsche Telekom AG, for example, pledged a 90% reduction in carbon emissions between 2017 and 2030. In total, European carriers will have to reduce carbon dioxide emissions by 6 million metric tons within 11 years to achieve their carbon targets, BloombergNEF analyst Kyle Harrison said in a research note.One solution is for the telecom companies to shift their power supply to renewables, but this can’t be done at the flick of a switch. Clean-energy contracts are complicated and can take years to negotiate.Carriers will be under pressure to sign new ones quickly to cope with 5G’s power demands, Harrison said. They’ll be vulnerable to striking bad deals, and price fluctuations in energy markets can turn some arrangements that initially look good into losers in the longer term. “The switch to 5G is going to put more pressure on telecoms to purchase clean energy and reduce their emissions,” he said. “Many clean energy deals can result in losses for corporations. Telecoms will need to put extra consideration into this as their power demand goes up, especially if losses will impact their investments into 5G.”To contact the author of this story: Thomas Seal in London at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In addition to improving operational efficiency, Ericsson (ERIC) will augment the network capabilities of Next-Tech Wireless for seamless IoT applications and other potential future services.
As part of Mcity's leadership circle, Verizon (VZ) is actively developing various 5G solutions designed to increase pedestrian safety and avoid car accidents.
As a new Microsoft Azure ExpressRoute partner, Viasat's (VSAT) Direct Cloud Connect service will likely enable its business customers to optimize their network infrastructure and cloud investments.
The additional funding underscores that U.S. Army continues to trust Comtech (CMTL) as a preferred service provider for its deployed soldiers.
The "co-build, co-share" framework agreement between China Telecom (CHA) and China Unicom (CHU) is likely to foster a congenial environment for faster deployment of 5G networks through apportioned infrastructure investments.
Qualcomm (QCOM) envisions a huge revenue-generating potential in low-priced 5G chipsets and aims to expand its product portfolio to cater to the various customer segments.
Strong competitive position and market share gains on the back of technology leadership and diversified customer base in high-growth markets drive Ciena's (CIEN) fiscal third-quarter results.
After a solid earnings announcement for the second quarter announced July 29, Nokia (NYSE:NOK) shares enjoyed a brief rally, trading up to around $5.69. But since then, enthusiasm has leveled off, with NOK stock trading sideways for some weeks at around the $5.10 to $5.18 level before falling off even further.Source: RistoH / Shutterstock.com The August doldrums have wound down. Much of the fear of a trade war with China is priced into markets. For investors looking for a sleeping giant in telecoms, Nokia may be just the bet.Here are three key reasons why Nokia may outperform in the next telecom sector rally:InvestorPlace - Stock Market News, Stock Advice & Trading Tips NOK Is Ready to Rocket With 5GThe upcoming next-gen standard for mobile telecommunications service, 5G, will deliver significantly faster speed than today's 4G technology. 5G will allow users to browse data-intensive websites, such as Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube, upload or download videos and use data-intensive apps. 5G can also deliver virtual reality much more quickly than the current 4G system. * 7 Best Tech Stocks to Buy Right Now In the U.S., Verizon (NYSE:VZ) and AT&T (NYSE:T) will likely be the first to offer 5G speeds. In fact, Verizon is already claiming that its 5G technology will probably deliver speeds 200 times faster than many of its 4G LTE users get now. Globally, Vodafone (NASDAQ:VOD) will likely be the market leader in Europe.The market for 5G will likely not take off until 2020. But when it does, users across the globe will need a brand new 5G standard smartphone. Carriers will sink billions into new 5G equipment. And Nokia will be positioned front and center in offering the new hardware across the globe. * 10 Stocks to Own Through a Global Recession According to Chief Executive Officer Rajeev Suri speaking to Bloomberg, "Nokia is winning contracts quite handsomely in new 5G telecom networks as the top three suppliers go head-to-head for the emerging business." He added, "We compete quite favorably with Huawei, with or without the current security concerns," Suri said referring to Huawei Technologies, the world's largest network equipment manufacturer.The market is now keenly focused on how far Nokia will pounce on 5G once the new standard introduced onto the global market. "Only Huawei and Nokia have full end-to-end product portfolios with wireless, fixed networks, and IP routing solutions, positioning Nokia for leadership with the top carriers as networks transition to 5G," according to Michael Walkley, telecom analyst at Canaccord Research. "[W]ith Huawei still potentially banned from certain markets, we view Nokia as the only global supplier with an end-to-end solution, as evidenced by leading global carriers choosing Nokia as a partner for 5G". Tight Financial ManagementThe history of technology paradigm shifts is filled with examples of companies throwing billions in capital down a black hole -- only to face far more competition in the market and far less revenues than expected. NOK is undoubtedly spending heavily on building their 5G market lead -- but with a certain degree of prudence.In the last earnings call, Nokia's CFO, Kristian Pullola, explained that they expect their most recent cost-savings program to result in a nearly $800 million reduction in recurring operating expenses and production overheads in 2020. So while NOK will make the massive capital investment necessary to win in the new 5G market, they are certainly keenly aware of past spending black holes -- and are already implementing tight financial controls. Strong Guidance for 2020NOK has managed to meet or beat analysts' estimates in for of the last five quarters. For their latest earnings call in July, NOK sounded more confident than ever that they will grow their critical metrics across the board for 2020. Full-year revenues are estimated to move into the positive territory up to 40 cents to 46 cents EPS. NOK also expects operating margin increasing from the 9-15% estimated this year up to 12 to 16% in 2020. * 7 Internet of Things Stocks to Buy Now "Our expectation is that we will outperform our primary market in full-year 2019 and over the longer term, driven by our strategy, which includes competing in 5G more effectively due to our strong end to end portfolio, focusing on targeted growth opportunities in attractive adjacent markets and building a strong network agnostic software business," said Rajeev Suri, Nokia's president and CEO.Most telecom and tech stocks have had a rough ride over the summer, and are now tending to trade sideways. When the investing season starts to heat up in September, the sideways trend for NOK stock could turn decidedly bullish -- and even more so after their third-quarter earnings call in October.As of this writing, Theodore Kim did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Nokia Stock Looks Ready to Rock With 5G appeared first on InvestorPlace.
China Telecom (CHA) is aiming to capitalize on the wide proliferation of crypto currency and fast deployment of 5G technology across the globe.
Huawei, the Chinese telecoms giant, on Tuesday said the U.S. has launched cyber attacks against it to infiltrate intranet and internal information systems as it denied a series of allegations. Huawei also denied allegations in a report in the Wall Street Journal that it stole smartphone-camera patents. "The fact remains that none of Huawei's core technology has been the subject of any criminal case brought against the company, and none of the accusations levied by the U.S. government have been supported with sufficient evidence. We strongly condemn the malign, concerted effort by the U.S. government to discredit Huawei and curb its leadership position in the industry," the company said in a statement.