Market Overview

Why Nokia Stock Spiked 23% Today

Share:
Why Nokia Stock Spiked 23% Today

Nokia Oyj (NYSE: NOK) rose nearly 23% in the regular and after-hours sessions on Monday.

What Happened: Nokia shares surged in part due to the efforts of r/wallstreetbets — a Reddit group with 2.1 million users — but another likely factor is a bullish report from SEB, a Swedish analyst company.

See also: How To Buy Nokia Stock

The Reddit forum caused a short squeeze in the stocks of several companies including Nokia, gaming retailer GameStop Corp. (NYSE: GME), and BlackBerry Ltd. (NYSE: BB).

SEB, one of the largest financial institutions in Scandinavia raised its price target on Nokia from $4.25 to $4.60 per share and reiterated its Buy rating, the Motley Fool reported Monday.

The analyst firm said that Nokia’s stock is undervalued in comparison with Swedish-rival Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC).

Ericsson stock closed 3.38% higher at $12.23 on Monday.

Why It Matters: Nokia is a leader in 5G, a technology in focus for the foreseeable future.

SEB expects Nokia to restore dividends and is positive on the company’s fourth-quarter earnings report due Feb. 4, the Fool noted.

Price Action: Nokia shares closed nearly 15.5% higher at $4.85 and ran up 7.22% in the after-hours to $5.20.

 

Related Articles (NOK)

View Comments and Join the Discussion!

Posted-In: Reddit Short Squeeze smartphonesNews Penny Stocks Movers Tech Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com