Shares of Nokia Corporation (ADR)(NYSE:NOK) extended its rally in the pre-market session on Wednesday and the stock is up another 5% to $2.93, matching the level it had on September 05, the day when it held its event for the introduction of two smart phones.
Just after the event, the stock had quickly pulled back by 20% to as low as $2.31 the next day as large bulk of investors didn’t expect after the company unveiled its brand new two Lumias - Lumia 920 and Lumia 820 - running on Windows Phone 8 operating system to encounter the ongoing solid competition in the smartphone industry.
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Although, the company added several notable features, but investors reacted negatively as the phones are not expected to be on store shelves until November which gives the company very little time to notch up sales in the financial year. Analysts complained that a limited fourth quarter launch would be a big disappointment for consensus earnings' estimates for the company.
Yesterday, Nokia Siemens Networks CEO Rajeev Suri assured that the company is in negotiations with various suitors about selling its business support systems unit, while it's also looking to sell its telecom applications business. The divestitures are part of a clear-out of NSN's non-core and low or non-profitable operations. Suri also says the firm's overhaul is 6 months ahead of schedule.
The stock may face resistance at $3.30, which is its 200-Day Moving Average. Also, the stock may react to Apple Inc. (NASDAQ:AAPL)’s event today, where the company is expected to reveal new version of iPhone.