In an ill-looking market and tech companies taking the unwanted lead, there’s also Nokia (NYSE:NOK). And right now, both off and on the NOK stock price chart, investors have the opportunity to “strategically explore” a profitable purchase for a better tomorrow. Let me explain.
For most of Wall Street, it’s all about Microsoft’s (NASDAQ:MSFT) coronavirus-driven sales warning and a growing Covid-19 health threat following the discovery of the first U.S. case of “unknown origin” in California.
The combined reports in a market already showing sure signs of panic and fearful behavior has led to the S&P 500 index spiraling lower by another 4.42% on Thursday.
For Microsoft’s part and following Apple’s (NASDAQ:AAPL) sales warning earlier this week, shares of the world’s second-largest publicly traded company are off by about 4.75%. That brings the tech giant’s total loss to around 15% over the last couple weeks since hitting an all-time-high. But for Nokia stock the real story may be all about yesterday’s news, literally and figuratively, as well as the price chart.
In Wednesday’s session and amid an ever-growing risk-off contagion within the markets, the Finland-based telecom outfit saw shares jump more than 12% intraday before finishing up about 6% on M&A optimism. The bid followed a Bloomberg report Nokia is “exploring strategic options.”
While some obviously skeptical profit-taking can’t be faulted for a company still associated with its ill-fated cellphone business and whose shares have languished for the past two decades, there is also hope for tomorrow’s NOK stock.
NOK Stock Price Monthly Chart
Source: Charts by TradingView
With Nokia continuing to score new customer contracts and equipping itself for meaningful long-term growth within today’s massive 5G build-out, NOK stock shouldn’t be dismissed as yesterday’s news. Moreover, the company is now positioning itself off and on the price chart to be a legitimate turnaround play.
In today’s world where nearly 5 billion videos are watched daily on Alphabet’s (NASDAQ:GOOGL) YouTube and more than 3.25 billion hours of content (and growing) are viewed each month, capturing a piece of the 5G pie that’s so critical to trends like these not only sets up Nokia for a recovery, but maybe and finally, even a new chapter for its shareholders.
The other “maybe and finally” platform that’s taking shape is on Nokia stock’s price chart. Roughly eight years since hitting a 16-year low, over the past couple of month’s shares have confirmed an oversold and technically well-supported undercut variation on the classic double bottom more than three years in-the-making.
The price action in Nokia is promising to say the least. Of course and as anyone with even a passing interest in today’s market can tell you, investing rightfully comes with disclaimers. And NOK stock chart isn’t immune from those uglier possibilities. Still, the observation is that that feeling of Finnish happiness could prevail for investors ‘strategically exploring’ a purchase of Nokia today.
Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
