Nokia (NYSE:NOK) Shares Gap Down – What’s Next?

Nokia Corporation (NYSE:NOK) gapped down before the market opened on Thursday. The stock had previously closed at $9.25, but opened at $8.57. Nokia shares last traded at $8.5270, with a volume of 32,887,669 shares trading hands.

Key Nokia News

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: AI and cloud demand accelerated: Third-quarter revenue increased approximately 10% year over year, while comparable operating profit rose 35%. AI and cloud customer sales surged 123%, with IP Networks revenue up 43% and Optical Networks revenue up 18%. Nokia’s Q3 Earnings Beat Estimates on AI & Cloud Strength
• Positive Sentiment: Results exceeded expectations: Nokia reported adjusted earnings of $0.10 per share versus the $0.08 consensus estimate, and revenue of $5.84 billion versus the $5.72 billion forecast. Management also pointed to strong order intake from AI and cloud customers and continued growth potential into 2027. Nokia third-quarter profit beats expectations
• Positive Sentiment: New strategic opportunities: Nokia and ICEYE signed a letter of intent with Ukraine’s Ministry of Defence to explore sovereign satellite communications capabilities, potentially expanding Nokia’s role in defense and connectivity infrastructure. Ukraine partners with Nokia and ICEYE for Starlink alternative
• Neutral Sentiment: Analysts remain constructive but lowered targets: Rosenblatt reduced its price target from $15 to $14 while retaining a Buy rating, and JPMorgan lowered its target from $21 to $20.50 while maintaining an Overweight rating. The cuts suggest analysts still see substantial upside but are adjusting expectations after the selloff. Rosenblatt cuts Nokia price target to $14 but keeps Buy
• Negative Sentiment: Costs and cash flow are the main overhangs: Nokia warned that supply constraints represent a structural cost increase rather than a temporary shortage. Capacity expansion, margin pressure and higher cash requirements are tempering enthusiasm over AI-driven growth.
• Negative Sentiment: Guidance was not raised: Fourth-quarter revenue guidance of $7.1 billion to $7.4 billion broadly brackets the $7.3 billion consensus estimate, while the company maintained its broader outlook. Investors appear to have expected stronger upgrades following the earnings beat. Nokia Q3 Earnings Call Highlights AI Growth and 2027 Outlook
• Negative Sentiment: Market conditions amplified the decline: NOK fell sharply alongside the wider AI and technology sector, causing investors to discount the earnings beat and focus on valuation, profitability and execution risks.

Analyst Upgrades and Downgrades

NOK has been the topic of several analyst reports. Jefferies Financial Group reissued a “buy” rating on shares of Nokia in a report on Tuesday, September 29th. B. Riley Financial started coverage on Nokia in a research report on Thursday, September 17th. They issued a “buy” rating and a $15.00 target price for the company. Danske raised shares of Nokia from a “hold” rating to a “buy” rating in a report on Wednesday, July 1st. JPMorgan Chase & Co. dropped their price target on Nokia from $21.00 to $20.50 and set an “overweight” rating on the stock in a research note on Friday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Nokia in a research note on Friday, September 4th. Sixteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $13.41.

Nokia Stock Performance

The company has a market capitalization of $46.64 billion, a P/E ratio of 50.77, a P/E/G ratio of 0.94 and a beta of 1.19. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.22 and a current ratio of 1.50. The business’s fifty day simple moving average is $10.10 and its 200-day simple moving average is $11.43.

Nokia (NYSE:NOK) last announced its quarterly earnings results on Thursday, October 22nd. The technology company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of $0.08 by $0.02. The company had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.72 billion. Nokia had a return on equity of 10.48% and a net margin of 3.80%. The firm’s revenue was up 9.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.06 earnings per share. As a group, equities analysts anticipate that Nokia Corporation will post 0.39 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Gateway Wealth Partners LLC bought a new stake in shares of Nokia during the first quarter valued at approximately $81,000. Waverly Advisors LLC bought a new stake in Nokia during the 1st quarter valued at $82,000. Stephens Inc. AR bought a new position in shares of Nokia in the 1st quarter worth $87,000. Jackson Thornton Wealth Management LLC bought a new stake in Nokia during the first quarter valued at about $95,000. Finally, Kathmere Capital Management LLC boosted its holdings in shares of Nokia by 14.0% in the 1st quarter. Kathmere Capital Management LLC now owns 12,081 shares of the technology company’s stock valued at $97,000 after buying an additional 1,483 shares in the last quarter. Institutional investors own 5.28% of the company’s stock.

Nokia Company Profile

Nokia Oyj is a Finland-based technology company that provides communications networking equipment, software and related services to telecommunications operators, enterprises, governments and other organizations worldwide. Its offerings support fixed and mobile broadband, optical and IP networks, data centers, cloud environments and private wireless communications.

The company’s business activities include mobile network infrastructure, network automation and management software, fiber and broadband access, optical networking, routing, data-center networking, and cloud and network services.