NOK Stock Just Got Some HUGE News (Nokia Stock) By Finance Bro

Today we will be discussing Nokia stock and why it could be going higher this week, let's get into the video hi everyone. My name is Zach and welcome back to finance bro before we get into the video I'd like to ask you guys to please leave a comment of how many shares of Nokia you are holding and also consider leaving a like and subscribe, because it really helps with the YouTube algorithm and if you guys, have not signed up for feeble yet, and you want two free stocks that could be worth up to 2 300 goes ahead and click the first link in the description and deposit five dollars on the platform, and you'll get those two free stocks with all that out of the way, let's get straight into our stock for today, Nokia, all right. So, first off we have to talk about how much heat Nokia is coming in with on stock twit. So stock twits is actually an uh. You know website. I talk about this on every video, but it's a website.

They can see what stocks are trending and which stocks are not. Last night, when I was checking the uh the market in the pre-market um, you could actually see that Nokia was one of the top trending stocks um and also on stock twits. They were about, I believe, three uh, so they were the top training stock. Today um they are actually trending at number six. At the moment they were up ten percent on the day, obviously, and we're going to be going over.

Why um, but then also uh, they did add the eighth most watchers over the last uh 24 hours uh. So obviously, Nokia usually doesn't get this type of hype, but they got it today because of what we're about to talk about all right- and here we are on the motelyfoolfool. com, and it is why Nokia stock surged, tired today um investors see signs of life for this beaten down provider of communication equipment. So the key points here are that they had a strong start to the year and management expects to raise its full year guidance, so that basically means they expect their year to be better than they thought it was, and whenever this happens with the stock, you do usually see a bump in price, but we saw a bump of about 9.5 percent, which you don't really see in Nokia that often because it takes a lot of money to actually get them to bump, because they do have a 33 billion dollar market cap, which is pretty high uh for comparison. That's pretty comparable to amc, also not doing too good today, but that's uh besides the point.

The second key point is that Nokia's CEO sees a favorable demand scenario from the 5g upgrade cycle, but intense competition makes it unclear how long these good times will last uh. So basically they're like hey we're being um. You know cautious about this, but we're doing pretty good um but yeah so uh. We already went over all of this. The gains come on top of stellar performance here today, as shares have outpaced the broader market averages, so that's very, very good, obviously way outperforming the s p after the kind of meme stock run and the resurgence of meme stocks in the past month or two um.

Obviously, Nokia's been doing pretty good, so management's previous guidance for full year. Net sales were between 20.6 billion euros and 21.8, or approximately 25 billion at the midpoint. In 2020 Nokia report net sales of about 20.9 billion euros. The company said that it would provide more details on its updated guidance july 29th, but basically they said hey. We are thinking that our guidance is actually going to have to be increased a little because we're actually doing extremely well, so reported sales were up three percent year over year, but after adjusting for currency changes, sales growth looked even better coming at nine percent year over year, basically perfect for Nokia.

The upgrade cycle to 5g is giving this community's communication services provider new life, but this is an intensely competitive market with Samsung um, Hawaii and Ericsson among a host of smaller competitors vying for contracts, but Nokia has been performing this uh well this year, uh year to date, um so yeah, basically the rest of it's just uh. You know 5g cycle they're doing well, but they're being cautiously optimistic as there's a lot of competition in the market, but they are doing better than normal. So yeah, that's why it's going a lot higher today, because all this just came out and then also remember. This catalyst is coming up that on the July 29th they will be giving its updated guidance so make sure if you're, a Nokia stock investor you're keeping an eye out for July 29th all right here we can come to Yahoo Finance. This is the best place to actually research your stocks.

Obviously, today we started about out a bit in the green. If you can see here um for all stocks, but then, by the end of the day, we kind of took a little of a hit because of the CPI uh data that came out that shows inflation is pretty bad at the moment, but to be expected. So, as you can see here, market cap, 33 billion, um earnings for sure negative point, 45 cents, um, midterm and long term. Look good and then short term looks a little bad according to this bearish pattern that they detected. But that is because they, you know blackberry, had a huge bump earlier today, but yeah.

Let's move on here to earnings, you can see that they've beat three of the last four quarters, and financially they've been doing between 23 and 24 billion on revenue and quarterly. They obviously had a perfect q4, and they think that they will have to update their guidance. So they should be earning a lot of revenue um in 2021 as well. The recommendation rating is going to be a 2.6 um compared to uh. You know it's basically between a buy and a hold and then analyst price targets out of eight, the lowest five and the high is actually seven point, eight um, so they are close to their average um.

But there is a lot of upside. If uh we get to that seven point: eight uh range, so yeah, let's go here to financials for a second, obviously you can see quarterly. The income is looking great. Obviously they had a perfect q4, but they think that they're going to have a great rest of the year, so this should be increasing as well. If you take a look at their balance sheet, you can check their latest balance sheet.

You can see that they have 18 billion dollars in current assets compared to 11 billion dollars in current liabilities. That's exactly what you want to see. That is a very strong balance sheet and then obviously only about 6 billion in total debt, so the current assets more than cover their current liabilities and total debt combined. So they have a strong balance sheet. They have a lot of income coming in, and they think that the guidance will get even better, so they will be doing a lot more in net sales, so overall, very good for Nokia looking forward, and then we have that catalyst on July 29th all right, and now we can come here to the technical analysis portion of this video.

Obviously, if you take a look-out, if you go to a large time frame, uh Nokia, basically just bounces back and forth between three and six dollars, and they've done that for years on years, basically, just bounces up in between four and six dollars doesn't really change much because they have a lot of shares out there, and you know it takes a lot of money to actually move uh. The stock's price. Obviously, today we're doing a bit better. A lot of volume today compared to you know not as much volume the past couple of days on this perfect news, and we started out the day at about 575 and ended the day in the green. Also after hours, we were in the green, so um it's looking like.

We have support at about the 584 level um and a resistance. Obviously we have a pretty big resistance there at six dollars. If we can get above that resistance at six dollars tomorrow, we could be going to the 650s range, but there's not that much uh. Sadly, there's not that much upside from here um. If we do break that resistance, it would really only get to about the 650 range in my opinion, which would be like six or seven percent more gains.

So it's not too much more gains, but we also do have a catalyst coming up on the 29th. So overall uh the stock is looking good, but let's hope that they don't break this like 584 support tomorrow and that they just keep trading up here and not start a bearish trend down uh, obviously uh on the Mac. The trend is about to start down and uh. We are still a bit overbought so overall going into tomorrow. I wouldn't be too bullish on it, saying above that 585 level, but if it does, that'd be very good for the stock but yeah.

That is pretty much going to be it for the video. Thank you guys, all so much for watching if you guys did enjoy. Please leave a comment of how many shares of Nokia you are holding and then also consider leaving a like and subscribe, because it really helps with the YouTube algorithm. But my name is Zack, and I hope to see you in the next video.

Source : Finance Bro