Why Shares of Nokia Jumped and IBM Fell
Investors who gave up on Nokia (NOK), BlackBerry (BB), Ericsson (ERIC), or Cisco Systems (CSCO) missed out on their rally.
Nokia gained over 60% from its 52-week low, adding 9.7% last week in reaction to its quarterly report, as stock markets treated it like an AI and cloud services supplier.
- In the third quarter, the network infrastructure segment delivered 11% in net sales growth.
- Optical Networks grew by 19%, thanks to AI and Cloud customers, according to CEO Justin Hotard.
- Network forecasts that its venture fund investments will add EUR 0.1 billion to its operating profit.
- Its full-year profit forecast is EUR 1.7 billion to 2.2 billion.
IBM (IBM) initially slipped toward its 50-day moving average at below $270, but then jumped by 9.31% on Oct. 24, closing at $307.46, a new 52-week high.
CEO Arvind Krishna said that clients turned to it as a trusted partner to help them build embedded AI and infrastructure.
In Q3, IBM posted a 7% revenue growth rate.
Author's summary: The stock market reacted positively to Nokia and IBM's quarterly reports.