Home > News > Nokia shares spike by 12%: Is the Lumia 920 doing that well?

Nokia shares spike by 12%: Is the Lumia 920 doing that well?

Yesterday, shares of Nokia (NOK) climbed 12% to $3.40 per share. The stock has slumped for several months now, so the sudden jump has a lot of analysts scratching their heads. So what is the impetus behind this shot of good luck for Nokia?

Share prices usually reflect the expectations and perceptions of investors. Back in July a similar occurrence happened. Even though Nokia was leaking money like a rusty boat, their stock rose 12% thanks to the 4 million shipments they made of the Lumia.1

So can the Lumia 920’s success be thanked for this sudden jump in Nokia’s share prices? Well, the phones certainly do improve a lot upon the fundamentals which the Lumia 900 introduced. Being a Windows 8 device, it contains higher specifications such as 720p resolution, dual-core processor, and larger storage. It contains Nokia’s critically acclaimed Nokia Maps, which is rather competitive compared to Google Maps and definitely blows the laughable iOS Maps out of the water. Not only this, the device supports wireless charging, NFC syncing, and an extremely good camera.

So it comes as no surprise that the Lumia 920 has been shipping in truckloads; in fact the demand for the new device was so strong that it has been selling out. A Nokia phone selling out, fancy that! And the phone may do even better in Asia than it did in Europe when it finally releases there.

Nokia is rumored to be launching the Lumia 920 and 820 in Asia in December2 just in time for Christmas. The success of these phones in the region will greatly contribute to whether or not Nokia can keep up this momentum. The good news though is that Nokia have a good track record in areas such as India, and have sold many handsets there even during their ‘off-peak’ season in the previous years.

Of course when there’s money on the line, traders can be a skeptical bunch. When big analysts or banks downgrade stock ratings on companies, many sell blindly despite what products a company offers. There have been rumors2 though, that investment Goldman Sachs and Morgan Stanley downgraded Nokia’s stock rating on purpose so that they could secure more shares of the company, while in secret they knew the company was about to bounce back. Word of this has gotten out now, and traders may be jumping back on the Nokia train once more.

If this 12% bounce in stock price has enough momentum (i.e. trading volume), it may be just what is needed to get Nokia back in the game.

And as we all know, more competition is always a good thing for consumers.

VR-Zone is a leading online technology news publication reporting on bleeding edge trends in PC and mobile gadgets, with in-depth reviews and commentaries.

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