Seriously, What Were Investors Expecting from Nokia?

In the video below, Senior Technology Analyst Eric Bleeker looks at the outsized sell-off in Nokia's shares after the company announced its newest phone. As Eric describes, the phone came in pretty much as expected, with slick hardware. However, the next day Nokia, sold off a whopping 16%.

In the end, Eric notes a couple of takeaways. The first is that, while Nokia is being trumpeted by many value investors, the size of yesterday's sell-off on a phone announcement shows that there are a fair amount of speculators crowding into its shares. Second, the sell-off was probably less about the phone itself, and more because Nokia didn't announce a firm release date aside from the fourth quarter of this year. Nokia says its hardware is ready, but it's waiting on "integration" issues with Microsoft's new Windows Phone 8. To that end, Eric says that the launch could be just another reason why Nokia might have been better off going with Android. To see Eric's full thoughts, watch the following video. 


Nokia's loss has been Apple's gains, making Apple the most influential company in technology. However, with the impending release of the iPhone 5, and Apple TV on the horizon, the stakes have never been higher for the company. If you’re looking for a recommendation on how to play Apple, along with continuing updates and guidance on the company whenever news breaks, we’ve created a brand new report that details when to buy and sell Apple. To get started, just click here now.

Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Nokia. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On September 06, 2012, at 7:59 PM, careersincloud wrote:

    We experienced investors expect a whole lot from NOK and we know how NOK can go up hundreds of percentage points in 36 months but the trading action of this day might be investors buying or could be swing traders.

    I am long NOK

  • Report this Comment On September 06, 2012, at 10:34 PM, dastaub22 wrote:

    Eric says that the launch could be just another reason why Nokia might have been better off going with Android

    It shows the hyper expectations people have when MSFT is involved. Of course the same people will also write MSFT is doomed in the next sentence.

    MSFT is making great progress.

  • Report this Comment On September 06, 2012, at 11:58 PM, TechTime wrote:

    When the iPhone 5 is announced, the analysts will see how inferior it's spec's and features are to the Lumia 920. Then they'll have to wait another year to see if Apple will finally make some fresh changes to the iPhone 6?

  • Report this Comment On September 07, 2012, at 2:49 AM, foolishlycuriose wrote:

    Perhaps the market was expecting more of an Apple like event. Instead what they got was a typical NOK, that is to say Finnish style, marketing event - a subdued product benefits and features presentation that showed what the new Lumia phones look like and can do. The message here is that NOK is not APPL and doesn't want to be. The sooner investors realize that the sooner the speculative buy and sell mentality toward NOK will stop and its true market potential can be established for value investors.

  • Report this Comment On September 07, 2012, at 2:53 AM, ajaykc wrote:

    is Apple the only company that everyone should hold in a portfolio? Every article about Nokia says at the botton "Motley fool knows how to make money in Apple stock and its derivative play" and how bad Nokia is.

    I thought Wallst. says to "diversify" and to my understanding, Wallst. is least diversified and it will crash and burn the Apple disappoints.

    Anyone remembers "how great real estate was until 2007" and then nobody wants to touch it even after 5 yrs from that epic crash. How about those "super banks"?

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