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.