|Bid||4.9600 x 317700|
|Ask||5.0100 x 34100|
|Day's Range||4.9300 - 4.9900|
|52 Week Range||2.3400 - 5.3900|
|Beta (5Y Monthly)||0.42|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jul 29, 2019|
|1y Target Est||5.19|
(Bloomberg) -- Nokia Oyj Chief Executive Officer Pekka Lundmark said the Finnish networks maker plans to stand clear of geopolitics as the technology industry increasingly is thrust into trade and political conflicts.Lundmark, who took the reins at Nokia on Aug. 1, is finding his footing in a tense situation that pits China -- and Nokia’s rival Huawei Technologies Co. -- against the U.S. and other governments moving to ban the Chinese supplier from their fifth-generation mobile networks.“I think it would be a big mistake if individual businesses would start to drive their political agenda,” he said in an interview on Friday. “It’s very important that businesses play it straight and stay where they should stay. We do not have a political agenda, we are a pure business.”U.S. President Donald Trump’s administration has been pressuring allies against using Huawei’s equipment, which it argues could pose a danger to network security. Huawei has forcefully and repeatedly denied these allegations. Huawei isn’t the only Chinese tech firm targeted: on Thursday, Trump moved to ban Chinese-owned TikTok and WeChat social media apps.Huawei’s troubles have brought some business Nokia’s way, the company said last month. Nokia is also getting orders from operators, who are investing in added capacity for existing networks as people stream entertainment and attend virtual meetings amid the pandemic. The U.S. and the U.K. have signaled they’re considering some form of aid to Nokia and its Swedish competitor, Ericsson AB, to ensure competition in the supply of 5G gear.Nokia lags behind rivals in the 5G race, and that’s what Lundmark has been brought in to fix. Five days into his new job, the CEO said he is busy speaking with customers and has begun mapping a path forward.“My goal definitely is that I would be able to say something more concrete before the end of the year” on “what next steps we should take on the market,” he said.That may seem like a long time for shareholders, reeling from a 40% drop in the stock price since a 2015 high (on the day it announced the purchase of Alcatel-Lucent). They’ve been waiting since early March for Lundmark to take the reins, and many have expressed hopes he would act fast to start a turnaround. Lundmark said he has plans for an investor day “in due course” -- a rare event at Nokia, which has only held two Capital Markets Days since 2009, the last one in 2016.“We have had our ups and downs in Nokia’s performance and the company has gone through a fundamental transformation,” he said. “But I’m also cautiously optimistic about the situation right now.”(Updates with operator investments in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nokia's new chief executive Pekka Lundmark said he will take time to re-acquaint himself with the Finnish telecom equipment maker as he works toward setting a strategy, as the company jostles for position in the highly political 5G race. U.S. government pressure to limit the use of China's Huawei presents an opportunity for Nokia as next generation technology is rolled out, but Lundmark would not be drawn. "Maintaining good relations with governments in pretty much all parts of the world is extremely important," Lundmark said in a video interview with Reuters on Friday.
Nokia (NYSE:NOK) stock is on a nice little run as of late. The Finnish telecom equipment company is up 35% so far this year, including a 15% pop in Nokia stock since the company announced second-quarter earnings.Source: RistoH / Shutterstock.com Nokia's advancement comes despite the debilitating effects of the novel coronavirus, and despite the company's failure to win 5G business in China.But brighter skies are ahead. Nokia raised its outlook for the rest of 2020. And despite the China setback, I think Nokia is positioning itself to take advantage of the global rollout of 5G technology - a pretty exciting advancement that I think will be a game changer for many telecom companies.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nokia Stock at a GlanceNokia reported second-quarter earnings on July 31 that included net profits of 311 million euros ($368.7 million), an increase of 21% from a year ago. * 7 Travel Stocks to Buy Banking On Pent-Up Demand The increase in profits came even while sales fell 11%, to 5.1 billion euros. Nokia said the drop in sales was a result of the Covid-19 pandemic, which weighed sales to the tune of 300 million euros.The other major factor that impacted sales was competition in China. Nokia's primary competitors in the telecom equipment space are Swedish company Ericsson (NASDAQ:ERIC) and the Chinese company Huawei.No doubt, Huawei enjoyed a lopsided home-field advantage in negotiating contracts in China. Nokia says its sales in China fell 41% in the quarter. It cited a "high level of competitive intensity" and its own "prudent approach" to making deals in China.Those are buzzwords for a company that came out on the losing side of a deal. But CEO Rajeev Suri, while speaking to analysts, did his best to put a positive face on the news."We have both a favorable product mix, more capacity, less deployment services, as well as regional mix with more North America and less China. While some of this will likely continue in the near term, we would expect it to be slightly less pronounced compared to the just-ended quarter."Sales in the company's Networks' segment fell 10% on a year-over-year basis; Nokia Software sales were down nearly 12%; Nokia Technology segment sales were down 11% and sales in the company's Group Common and Other segment were down 20%.On the plus side, Nokia says it ended the quarter with an improved cash position, holding 1.6 billion euros in net cash, which was up from 1.3 billion in the previous quarter. Free cash flow in the second quarter was also improved, at 265 million euros, compared to -1 billion euros in the same quarter a year ago. Looking Ahead for NokiaWhile Huawei was an unmovable obstacle for Nokia in winning 5G contracts in China, it's a big world. And Huawei isn't super-popular outside of Beijing's influence.The U.S. government has been anti-Huawei for a while now and is pressuring its allies to shun the Chinese telecom equipment company. That could help Nokia get more market share in western nations, although Ericsson will be a formidable opponent. InvestorPlace's Josh Enomoto lays out this case in detail.And it's not as if Nokia has been sitting still. The company said last week, it signed 83 commercial 5G deals around the world so far and has 32 live network deployments in hand. Why 5G Is So ImportantI'm really looking forward to the deployment of 5G wireless technology because I think it's going to change how we use the internet.Remember, 5G technology is 100% faster than 4G speeds. It will allow mobile devices to work as fast and efficiently as broadband cable modem speed.Just imagine - you'll be able to watch sports on any device without worrying about buffering. Online sports betting will be easier and faster - that will benefit companies like DraftKings (NASDAQ:DKNG) and companies like Penn National Gaming (NASDAQ:PENN). Movie studios and video game companies will put out better products and will be able to incorporate virtual reality.And in health care, 5G technology will make it easier for your doctor or nurse to make appointments and diagnose ailments without you going to the office.There's no doubt that when you think about it, 5G technology will be one of the biggest advancements in telecom in years. Creating the networks and the infrastructure for 5G networks is a huge business, and Nokia's going to be a big part of that. The Bottom Line on Nokia StockNokia has been around for a while, but the stock is cheap compared to where it was two decades ago. You can pick up Nokia stock for about $5 a share, while in 2000 it was more than $50.Now Nokia has a new boss coming in. Suri led Nokia for six years, but is handing the reins to Pekka Lundmark, who worked at Nokia from 1990 to 2000 and has spent the last two decades running an energy company, a heavy equipment provider and at a startup-focused venture capital firm.He comes into the CEO's office knowing exactly what's a stake. In a blog post, he wrote:"We stand at the cusp of the Fourth Industrial Revolution with 5G set to transform entire industries from health care to manufacturing, changing how we work and live, and giving us the opportunity to create economic prosperity and new jobs while caring more for our planet and improving the lives of people."He's right. Having someone with a venture capital background, with broad leadership in a number of fields, will help Nokia with its 5G rollout.If Lundmark can make Nokia a more nimble and aggressive company while pursuing 5G agreements, Nokia stock has a better-than-average chance of breaking out of longtime slump.Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Nokia Stock Is Breaking Out of Its Long Slump appeared first on InvestorPlace.