Nokia Pulls Reverse Uno Card with Seismic AT&T Fiber Deal (Nokia Catapults 28% YTD)

Soooo, remember when Nokia was the undisputed king of mobile phones? Yeah, neither does your iPhone. But guess who's trying to claw their way back into the game? That’s right, Nokia—the same company that gave us the indestructible brick phone you could use to fend off a bear, is now aiming to make a splash with a shiny new fiber optic deal with AT&T. 

(Source: Market Watch) 

Hmmm, is this a genius move or just a desperate attempt to stay relevant? Let's find out shall we? 

In short, Nokia just landed a multi-year deal with AT&T to roll out next-gen fiber access technology across the good ol' U.S. of A. For a company that's been on the ropes ever since losing a major network contract to Ericsson last year, this partnership is like winning the lottery—if the lottery also came with a manual on how to fix your entire life. 

(Source: Giphy) 

The deal includes Nokia’s Lightspan MF and Altiplano platforms, which sound more like trendy yoga retreats than crucial tech, but hey, whatever gets the job done.

With that said though, this move isn't just about boosting AT&T’s fiber network, which already covers a whopping 27.8 million locations. Nope, it's also about Nokia trying to get in good with Uncle Sam by aligning with the "Build America, Buy America" initiative. You know, the one that’s supposed to make sure we don’t end up buying all our broadband infrastructure from a random factory in Shenzhen (like we already do with our lead based “look like a millionaire” clothing, *cough cough* Temu). 

(Source: TikTok) 

What’s even more surprising, is that while some may think this is Nokia’s version of getting back into the headlines, the stock is actually soaring this year up +28.01% YTD. Cue the confetti? Eh, not so fast. You see, while Nokia’s stock rise is a nice ego boost, it’s not the whole story my friends.

(Source: Zacks Ratings)

For one, despite Nokia body bagging EPS estimates by +38.87% during their last reports, the huge win was overshadowed when investors realized their revenue fell short by -5.63%. Meaning, the other minor details that came to the surface was that their total revenue not only plummeted to $4.47 billion, but down a jaw dropping -17.87% year over year. 

(Source: Yahoo Finance) 

Oh and don’t you worry peeps, because while all of us are wondering how in the hell Nokia is still raking in a massive $4.47 billion these days… they don’t keep any of it. Yeah, with a profit margin that’s dropped -150.34% year over year, Nokia's margins are about as healthy as a deep-fried Twinkie. Translation: If you’re an investor, you might want to keep a bottle of Tums handy considering Nokias -3.27% net margins has the company sitting at -$146 million in net income over the past 12 months. Ouch…

(Source: Giphy) 

So given all of this, what’s the game plan with this AT&T deal? Well apparently, this deal with AT&T is more than just a quick fix; it’s a Hail Mary pass in the fourth quarter with five seconds on the clock. The fiber market is expected to explode, thanks in part to a $42 billion U.S. government program aimed at expanding broadband access. 

(Source: Reuters) 

And right now, Nokia’s CEO, Pekka Lundmark, is betting that this will help boost sales in the latter half of the year—because nothing says "turnaround" like government cash, amirite? 

But still, let’s not kid ourselves - in the grand scheme of things, this isn’t just about fiber optics. You see, by getting cozy with AT&T, Nokia’s positioning itself for the big leagues: Industry 4.0, smart cities, IoT applications, you name it. If all goes according to plan, this could be Nokia’s ticket back to the top of the telecom food chain. Or it could be another chapter of “almost” like Elon is with his Robotaxi dreams. 

(Source: Giphy) 

This of course, brings me back to guys like you and I, aka investor thoughts on this shindig. In short, the Nokia-AT&T deal is like that double-edged sword your mom told you not to play with. 

On one side, the technical indicators are flashing "Strong Buy" like a neon sign outside a Vegas casino. Sixteen out of seventeen indicators say Nokia’s stock is hotter than a jalapeño, and 14 out of 15 moving averages are pointing to a continued uptrend.

But, but, but… until Nokia’s fundamentals align with the strong technicals, it’s a risky business position to be in as an investor. 

Which is why, the real question we should all be asking is this: Can Nokia turn this deal into a financial lifeline, or are they just rearranging deck chairs on the Titanic? Meaning, before you start humming "Eye of the Tiger," remember that Nokia’s got some serious hurdles to clear. Financially, they’re still in the ICU, and this deal is more like a shot of adrenaline than a full recovery.

(Source: Giphy)

However, with that said, in light of this reverse uno card Nokia has pulled on its current “has been” narrative… Why strain brain cells trying to figure out Nokia’s financial outlook when the last four of our Stocks.News alerts all exploded to peak moves of +110%, +185%, +110.10%, and +300%... in LESS than 48 hours?! 

Incredible right? Our premium members were absolutely eating last week, and with the market closed for Labor Day yesterday, and volatility coming out with a bang this week, our next alert on Wednesday, September 4th is set to be even more explosive. 

Could it be another +100% or +300% move in the making? There’s only one way to find out. Meaning, if you’re not a premium member, then what the heck are you doing? Hurry and upgrade immediately to make sure you get in on next week's action!

In the meantime… stay safe and stay frosty, friends! Until next time…

Stocks.News holds positions in AT&T as mentioned in the article.