On Tuesday, Nokia’s shares (NOK) are experiencing a dip, currently decreasing by approximately 5.4%, at 3:40 p.m. ET. This decline occurs amidst the S&P 500 (^GSPC) registering a modest increase of 0.1% and the Nasdaq Composite (^IXIC) showing a slight loss of 0.3%.
Nokia, the well-known telecommunications corporation previously dominating the mobile phone market, revealed today that they have adjusted their financial expectations before releasing their upcoming earnings report.
Nokia’s profit warns of currency and tariff impacts
Today, the Finnish company adjusted its projected full-year comparable operating profit, lowering the range from 1.9 to 2.4 billion euros to a new range of 1.6 to 2.1 billion euros. The main factors leading to this adjustment include unfavorable currency fluctuations, particularly the depreciation of the U.S. dollar, as well as the effects from tariffs imposed by both President Trump and the E.U. These tariffs have had an impact on their operations.
The depreciation of the U.S. currency is causing alarm not only for Nokia, but also for various international companies with substantial dealings in the U.S. When Nokia initially set its 2025 targets, it based the exchange rate on 1.04, which has subsequently increased to 1.17, a notable shift.
The company is struggling
The unfavorable factors such as exchange rate fluctuations and import taxes are making it tough for Nokia, a company that’s already facing hard times. Over the last few years, Nokia’s income has dropped drastically. Specifically, from 2022 to 2024, its total sales decreased from approximately $23.8 billion to $19.2 billion.
At present, I’d advise against investing in this stock. Although it might eventually change its current trajectory, it seems improbable that this will happen soon due to overarching economic factors and the potential for a substantial drop in its value.
Read More
- Gold Rate Forecast
- The Big Twist in PEACEMAKER Could Introduce Deep Cut DC Team
- Is Lucid Stock a Screaming Buy After Uber’s $300 Million Robotaxi Bet?
- Tempus AI’s Sudden Drop: What Investors Should Know
- Ted Lasso Rich List: The Wealthiest Actors in the Soccer Comedy, Ranked
- A Growth Stock with Pizzazz
- Alibaba’s Farce of Fortune
- Bitcoin Miner Funds Win Big: Are Your Savings at Risk? 🤔🎲
- Cidara’s Flu Gambit: A Biotech Stock’s Winning Weekend?
- XRP’s Woes: A Dance with Bureaucratic Demons and Market Whimsy
2025-07-22 22:52