Nokia leapt as much as 7.2% on Thursday on the back of a strong earnings call that led the company to boost its outlook for the second half of the year.
Nokia’s net profits in the second quarter jumped to €351 million from the €107 million analysts polled by FactSet expected. That number was up considerably from the same time last year, when profits came in at €99 million. Sales rose 4% to €5.3 billion, a bit higher than expectations.
The company upped its outlook for the rest of the year and for several years to come. It now expects to generate €22.7 billion in sales in 2021, up from €21.7 previously.
The stock bounced on the news, opening about 7% up and maintaining some of its gains so far throughout the trading day.
Analysts have been growing somewhat more bullish about the Nokia, which has at times attracted meme-stock attention. Earlier in July, JPMorgan upgraded the company from neutral to overweight. In June, Goldman Sachs issued a similar upgrade.
The Finnish company attributed its success in the quarter to mobile product launches as well as increasing market share in 5G network infrastructure. 5G has become a strategic priority across the world, a trend which has benefitted the likes of Nokia as some western countries eschew Chinese 5G infrastructure.
Nokia was trading at $6.10 as of 11:54 a.m. ET, up 4.96% on the day.
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.
Robinhood has been the poster child of the commission-free trading movement that has drawn a new generation of investors into the stock market, and its user base skews heavily to Millennial and Gen Z investors. From iconic companies like Apple, to upstarts looking to disrupt whole industries, here are the top 50 stock picks among Robinhood users.
Workhorse, the Loveland, Ohio-based electric-vehicle maker, has become a retail favorite among other auto manufacturers, like Lordstown Motors and Canoo.
Shares of the plane-maker have rallied more than 12% so far this year.
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.