So was it a chimera after all? Hopes raised, just to
be dashed?
Analysts feel that it is time to short Nokia
Corporation (ADR)(NYSE:NOK) shares, indicating that the stock's dream run ma
soon start to reverse.
The Nokia stock has risen 80 percent since the second
week of July, further gaining earlier this week after a federal court in San
Jose delivered a verdict against Samsung in its legal dispute over patents with
Apple.
However on Tuesday the shares fell nearly 7 percent
and on Wednesday the shares are down by a further 6 percent.
"In truth, there’s no real reason to think the
stock can’t slide all the way back to the July lows. Or lower," writes
Forbes' Eric Savitz.
How Should Investors
Trade NOK Now, Find Out Here
Bernstein analyst Pierre Ferragu has also advanced the
following argument as to why Nokia is a good candidate to go short on - “We
believe it would be naive of us to consider last week’s ruling a positive for
Nokia and more broadly Windows-based phones,” he writes. “Our research shows
that for many years, poor sales of Windows-based phones stem from a deep and
stable lack of consumer interest for the product. Despite numerous and repeated
efforts of manufacturers (Nokia, but also Samsung and HTC) and operators to
develop an alternative to Android and Apple based on Windows, and despite the
launch of numerous phones based on Windows with strong features, reviews and
marketing support, the operating system remains cornered to less than 5% market
share in smartphones. The lack of consumer interest for Windows-based phones has
been very consistent in marketing surveys we have carried out across the globe
over the last several years.”
"Given the strength of Android and Apple today in
consumers’ minds and the scale of both ecosystems, it is unrealistic to believe
anything short of a true product revolution, like the iPhone was in its time,
could instil life into an alternative platform.”
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ReplyDeleteEhh? read the article? Also, Q3 is gonna stink
ReplyDeleteThese analysts did not bring up the pro and con. Nokia beats Q2 estimate and is cutting a lot of expenses. The new phones will be available not only AT&T but also with Verizon Wireless and T-mobile. Windows phone are becoming more and more popular with consumer once they try it. The same thing happened with Android and iOs.
ReplyDeleteNOKIA SMARTPHONES WILL BE ON VERIZON.
ReplyDeleteLove to have windows phone to be available with all carriers.
ReplyDelete