Nokia Stock: +35.58% in One Week, Closing Above 6.60 Euros
Nokia closed Tuesday with a spectacular gain of 21.32%, capping off an exceptional week with a surge of over one-third. This rebound follows the release of quarterly results on Thursday that far exceeded expectations, driven by growth in the optical networks segment. At 6.60 euros, the stock is up 49.81% for the year, significantly outperforming the CAC 40 index.
Strong Weekly and Annual Performance
Nokia closed Tuesday at 6.60 euros, marking a 21.32% increase from the previous day (5.44 euros). This surge is part of a broader movement: over seven days, the stock has risen by 35.58%, and over three months, it has gained 78.09%. Over the past twelve months, the stock has shown an increase of 49.81%, significantly outperforming the CAC 40 index, which has only appreciated by 9.59% over the same period. In contrast, the broader index fell by 0.27% on Tuesday, highlighting the unique momentum of the Finnish stock. This rebound is rooted in the publication of solid quarterly results last Thursday. The Finnish group reported an adjusted operating profit of 435 million euros, far exceeding the analyst consensus of 342 million. The quarterly revenue reached 4.83 billion euros, also better than expected. The Optical Networks division stood out with a growth of 19%, driven by increasing demand for optical networks for cloud infrastructure and artificial intelligence. CEO Justin Hotard noted that demand in this segment continues to accelerate, suggesting a sustainable momentum beyond the past quarter. However, Tuesday's trading suffered from very limited liquidity. Only 0.05% of the capital changed hands, reflecting a narrow market for the stock. Despite the strong daily progress, this lack of volume is significant: it partly explains the magnitude of the movements but also raises questions about the real thickness of the rebound. The stock is rising rapidly, but on a thin basis, which increases vulnerability to technical shocks.
Strategic Positioning in Artificial Intelligence
Nokia has gradually carved out a place in the artificial intelligence theme. Its cloud and AI clients now account for 6% of total revenue, but more importantly, 14% of sales from its Network Infrastructure division. Although this proportion is modest relative to the total, it crystallizes the group's reorientation towards high-growth segments related to data centers and connectivity needs. The revised annual guidance, raised to a range of 1.7 to 2.2 billion euros in operating profit, reflects this increased confidence, with the previous ceiling set at 2.1 billion euros. From a technical perspective, the stock shows mixed signals. The Relative Strength Index (RSI) peaks at 87, well above the overbought threshold of 70, a classic warning of a possible short-term correction. The MACD line, positive at 0.31, remains above its signal line set at 0.24, confirming an established upward dynamic. The 50 and 200-day moving averages continue their upward progression, with the stock trading well above both curves, a typical configuration of a confirmed upward trend. Monthly volatility stands at 11.22%, moderate considering the movements observed this week. The Bollinger Bands position the stock close to the upper band at 5.43 euros, indicating an extreme high position in the trading range. The major support is established at 3.83 euros, while the previous resistance of 5.44 euros has been surpassed. The beta of 0.11 suggests a very low correlation with broad market movements, explaining the stock's resilience during sector pullbacks.
