Nokia surges 9% as the meme stock favorite says it plans to raise guidance for 2021

Nokia
  • Nokia shares climbed as much as 9% Tuesday following an update from the meme-stock favorite.
  • The Finnish telecom equipment maker said it’s likely to raise its financial outlook for 2021.
  • The company may increase its view on metrics including net sales.
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Nokia shares soared Tuesday after the Finnish telecom equipment maker — considered part of the so-called group of meme stocks — told investors it may lift its financial outlook for the year.

The company said its business has continued to strengthen during the second quarter, brightening prospects for the rest of 2021. Net sales are among the metrics that may be revised later this month.

NYSE-listed shares of Nokia climbed 7.8% ahead of the opening bell after popping up as much as 9% to $5.87. The shares have been swept up in the meme-stock trading phenomenon spearheaded by retail investors who have also embraced GameStop and AMC Entertainment. Traders active on Reddit’s Wall Street Bets forum and other social media sites have been banding together to buy and hold onto stocks targeted by hedge funds betting on their decline.

Nokia said it’s making progress with its three-phased plan outlined in March to achieve sustainable and profitable growth.

“Our first-half performance has shown evidence of this in good cost control and also benefited from strength in a number of our end markets. We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year,” said Pekka Lundmark, Nokia’s president and CEO, in a statement.

An updated outlook from Nokia would be part of the company’s July 29 release of second-quarter and half-year financial results.

In April, the company reiterated its view of net sales of €20.6 billion ($24.4 billion) to €21.8 billion and a comparable operating margin of 7%-10%. It had also backed its view of positive free cash flow and a rate of 10%-15% return on invested capital.

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BlackBerry and Nokia climb as Reddit favorites make a resurgence

BlackBerry CEO NYSE
John Chen, CEO of BlackBerry, gives an interview following the opening of his company’s stock at the New York Stock Exchange (NYSE) in New York, U.S., October 16, 2017.

  • BlackBerry and Nokia gained as much as 7.4% and 7.2%, respectively, on Thursday as Reddit traders returned to their favorite stocks.
  • The day traders who lifted meme stocks in January returned to the market Wednesday afternoon and boosted GameStop shares.
  • The revival of strong retail-investor momentum also lifted AMC, Koss, and Express.
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BlackBerry and Nokia rallied on Thursday as the revival of Reddit-trader momentum lifted a handful of so-called meme stocks.

BlackBerry rose as much as 7.4%, while Nokia gained 7.2% at intraday highs. Both stocks quickly pared gains through the morning, with BlackBerry turning slightly negative soon after the open.

The nostalgic telecom names were among the several stocks to surge throughout January as day traders uniting in forums like r/wallstreetbets piled into highly shorted companies. The rally, best known for sending GameStop shares surging, died down in February as momentum shifted and retail investors rapidly exited their positions.

The final minutes of Wednesday’s trading session signaled the day-trader crowd is ready for round two. GameStop spiked 104% higher into the close as casual investors cheered the ouster of its chief financial officer, Jim Bell, as part of a company overhaul. The bullishness quickly spilled over into other Reddit favorites, including AMC, Koss, Nokia, and BlackBerry.

Posts on Wall Street Bets and other online forums suggest the upswing has some staying power. A post predicting “the Mother of All Short Squeezes” for GameStop stock sat at the top of Reddit’s “Popular” page at 8:30 a.m. ET, exposing the website’s users to the latest phase of the Reddit-trader saga. Hugely popular posts likely contributed to the January meme-stock rally, and a revival of such online activity could fuel similar inflows.

However, the day traders are no longer operating from the shadows. The GameStop surge drew scrutiny from Wall Street, regulators, and lawmakers, sparking new debate over protections for retail investors and their power in the market.

The House Financial Services Committee held a hearing on the phenomenon last week that included testimony from Robinhood CEO Vlad Tenev, Citadel CEO Ken Griffin, and popular retail investor Keith Gill, among others. The Senate Banking Committee is expected to hold its own hearings in the near future.

BlackBerry closed at $11.32 on Wednesday, up about 70% year-to-date.

Nokia closed at $4.04, up 4% year-to-date.

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