Here is what happened
Nokia Corporation (NYSE: NOK) stock price declined by -6.07% vs the prior day’s close as weak demand from investors lowered the stock value to $4.02. The company recently reported its plans to cut approximately 5000-10,000 jobs in the next two years to reset its cost structure and shift higher capital into research and development (R&D) for better competitive advantage and growth of the company.
Nokia has targeted to save a ball-park figure of $700 million per annum once corporate restructuring takes place. However, the company’s dividend yield being 0 has created uncertainty in stock prices, with investors skeptical about their future investments.
Nokia Corporation (NYSE: NOK) Bets On 5G Cycle For Competitive Advantage.
NOK has been following lucrative trends affecting the industry in the new future emphasizing highly on 5Gand creating opportunities for Communication Service Providers, and unique enterprises. Nokia Corporation predicts timely 5G networks investments will skyrocket the Finnish telecommunication manufacturer one step ahead of the game and provide a significant advantage over their competitors.
Investments in connected digital enterprises such as 5G will drive productive, effective, and safety gains across the globe. Due to which there will be massive development in the Enterprise market. Nokia was also increasing shipments of base stations containing cheaper integrated chip systems for production efficiency.
NOK also has a five-year contract with AT&T T to produce the wireless carrier’s C-Band networks emphasizing significantly on deployment in the US. Production and usage of 5G in the C-Band spectrum allows better 5G services to users, increasing capacity as well as having improved network services.
Conclusion
With a market capitalization of approximately $23.89 Billion, and stock valuation returning to normal, after the Reddit squeeze, NOK has surpassed investor expectations. Furthermore, Diversification in lucrative fields such as wireless enterprises has made Nokia corporation a major player in the wireless communication sector bringing forth shareholder interest for the future.
