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Why is Nokia Corp ADR (NOK) Stock down?

18 Mar, 2024:

Nokia Corp ADR Stock (NOK) declined by 5.69% due to the announcement of its share buyback program. Despite the typically positive market response to such programs, Nokia's initiative did not resonate well with investors, leading to a sell-off of its U.S.-listed shares.

  • Details of the Buyback Program: Authorized by Nokia's board of directors, the share buyback program involves the repurchase of over $650 million worth of its own shares. The program, announced alongside the company's fourth-quarter and full-year results in January, is set to be executed in two phases over a two-year period. Notably, the buyback only applies to shares listed in Nokia's native country of Finland, with the U.S.-listed stock excluded from the program.
  • Implementation of the Program: In the first phase of the buyback, Nokia plans to purchase up to 300 million shares (approximately $327 million) of its Finnish stock. This phase is scheduled to commence on March 20, with a deadline of December 18 for completion. Nokia stated that the primary objective of the buybacks is to "optimize" its capital structure. However, some investors may prefer to see Nokia focus on growing its business, as it has transitioned from being a dominant hardware maker to a niche player in its sector.
04 Dec, 2023:

Shares of Nokia Corp Inc (NOK) dropped by 9.46% from $3.49 to $3.16 in the trading on Monday, December 04, 2023. The reason why NOK is down today is due to AT&T's significant decision to choose Ericsson over Nokia. AT&T made a major strategic move by selecting Ericsson as its primary equipment supplier, resulting in a substantial setback for Nokia. Under the five-year agreement, AT&T will transition most of its new purchases of specific cell-tower equipment to Ericsson, replacing Nokia's equipment in many markets. This transition is set to commence next year, with the goal of having 70% of AT&T's wireless network traffic passing through open platforms by late 2026.

19 Oct, 2023:

Shares of Nokia Corporation Sponsored (NOK) dropped by 5.31% from $3.39 to $3.21 in the trading on Thursday, October 19, 2023. The reasons why NOK stock down include:

  • Weak Q3 Sales: Nokia's third-quarter sales experienced a sharp 20% year-over-year decrease, amounting to €5 billion. This decline was primarily attributed to higher interest rates and an uncertain macroeconomic environment, which led to reduced spending by operators. Sales in the Mobile Networks business segment dropped by 24%, particularly impacted by North American markets, where consumers reduced inventories to preserve cash flows. The company also faced a slowdown in the growth of its 5G deployments in India, which couldn't offset the North American decline. Sales in the Network Infrastructure business segment fell by 18%.
  • Job Cut Announcement: Nokia announced plans to cut up to 14,000 jobs as part of its cost-cutting efforts. This decision was prompted by the weak demand for 5G equipment and the challenging market conditions. Nokia's CEO, Pekka Lundmark, stated that while it was a difficult choice, it was necessary to align with market uncertainty and ensure the company's long-term profitability and competitiveness. Nokia aims to achieve savings ranging from €800 million ($842 million) to €1.2 billion by 2026 through these measures. The company expects to reduce its workforce to between 72,000 and 77,000 employees, down from 86,000, representing a potential 16% job reduction at the high end of the range.
14 Jul, 2023:

Shares of comminucation networking company Nokia (NOK) dropped 8.51% on Friday after the company consequently lowered its full-year net-sales guidance to 23.2 billion from 24.6 billion euros - a decrease of 6% from the high points of the guidance ranges.

https://www.fool.com/investing/2023/07/14/why-nokia-nok-stock-dropped-today/

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