What happened
Shares of Nokia Corporation (NOK -0.41%) rose 25% last month, according to data provided by S&P Global Market Intelligence, following a bullish report by an analyst and after the stock received attention from the Reddit investing crowd.
So what
Nokia's first share price spike happened on Jan. 25, after Swedish analyst firm SEB raised its price target to $4.60 up from $4.25, and reiterated its buy rating on the stock. The firm said that the company was undervalued compared to one of its biggest competitors, LM Ericsson, and investors took notice. The company's share price skyrocketed after the report was published.
Image source: Getty Images.
The tech stock experienced another huge share price jump just two days later when investors on Reddit's popular WallStreetBets discussion board began promoting the stock. Nokia's share price jumped 38.5% in just one day as investors pumped the stock on Reddit's website.
The Reddit-fueled boost didn't last long, however. Just days after spiking, the stock came crashing down about 29%. But gains made throughout the month were still enough to leave the stock up 25% for January.
Now what
Nokia hasn't fared as well this month and is down 12.5% in February. The drop came after Nokia released its fourth-quarter results on Feb. 4. Despite beating analysts' earnings expectations, the stock slid as management said this year will be difficult. Nokia's CEO, Pekka Lundmark, said in the fourth-quarter press release, "[W]e expect 2021 to be challenging, a year of transition, with meaningful headwinds due to market share loss and price erosion in North America."
