Nokia Stock Forecast: 67.69% Since Our Bullish Article

Nokia Stock Forecast

Nokia Corporation (NYSE:NOK) stock price has increased by 67.69% since I Know First published a bullish article for the company on Seeking Alpha. The article predicted that even though today’s Nokia will be far different from yesterday’s, Nokia shows great promise to become a major player in the telecommunications equipment industry.

Nokia Stock Forecast

Nokia Corporation, together with its subsidiaries, provides network infrastructure and related services in Finland, the United States, Japan, China, India, the Russian Federation, Germany, Taiwan, Indonesia, Italy, and internationally. The company operates through four segments: Mobile Broadband, Global Services, HERE, and Nokia Technologies. The Mobile Broadband offers network solutions for mobile voice and data services through its Radio and Core clusters for mobile operators.

Recently LG Electronics and Nokia Technologies (a subsidiary of Nokia Corporation) have signed an agreement whereby LG will embed Nokia-developed technology in its smartphones; this is one of the signs that show the belief of the company to regain the glory of the past and become a major player in mobile industry. The result of that agreement is that Nokia will provide LG with a royalty-bearing patent license for smartphones and LG will pay royalties to Nokia for use of its patents in mobile communication.

Everyone remembers that in 2014, Nokia divested its core devices and services business to Microsoft Corporation for $7.2 billion. Following Microsoft’s acquisition, Nokia split into three businesses: Nokia Networks (the telecommunication business), HERE (Nokia’s navigation and mapping business), and Nokia Technologies (the business which provides licensing of Nokia’s patents and is responsible for developing new products).

Nokia boasts an estimated 30,000 patents. Nokia’s patent portfolios are one of the most sought after in the smartphone business due to the innovative and intricate technology embedded in them. Of course Microsoft knew the importance of those patents and therefore spent $2.2 billion to gain access to its patents as the tech giant wanted to develop its own smartphones utilizing the patent pending technologies.

Nokia Corporation is currently working on different strategies to become more and more competitive in the connectivity market, but that could not be enough for the company to face the increasing competition in that overgrowing market, one of the critical issues, as mentioned by lots of analysts, is the fact that all the big wireless companies are investing to gain even more marketshare and Nokia will have to be effective, while not relying too much on the benefits brought by the acquisition of the mobile division by Microsoft.