Nokia Corp. (Nokia (NOK)) shares fell more than 3% on Friday as investors pulled back from technology stocks during a broad market sell-off. The Nasdaq dropped 1.85%, while the S&P 500 declined 1.11%.
The company is also approaching a key catalyst. Nokia is scheduled to report second-quarter results on July 23, which could increase volatility as traders adjust positions ahead of earnings.
Another factor weighing on sentiment is Ericsson's (Ericsson (ERIC)) recent earnings report. On Tuesday, the telecom equipment maker reported weaker-than-expected second-quarter results and warned that surging demand for AI infrastructure is tightening memory chip supply and increasing costs for custom silicon and semiconductor components.
CEO Börje Ekholm said Ericsson is "not immune" to those inflationary pressures and expects the financial impact to build over the coming quarters and into 2027. While Nokia has not issued similar guidance, investors may be assessing whether comparable industry cost pressures could also affect other telecom equipment suppliers, including Nokia.
The broader market remained weak. The Dow Jones Industrial Average fell 1.05%, while the Russell 2000 lost 1.20%. That backdrop continued to favor short-term selling over aggressive buying.
Earnings And Analyst Outlook
Nokia is set to report earnings on July 23. Wall Street expects earnings of 7 cents per share, up from 4 cents a year earlier. Analysts also forecast revenue of $5.59 billion, compared with $5.15 billion in the prior-year quarter.
The stock trades at about 65.1 times earnings.
Analysts maintain a consensus Buy rating with an average price forecast of $14.67. Recent research includes JPMorgan raising its price forecast to $21 while maintaining an Overweight rating on June 12, Argus Research upgrading the stock to Buy with a $15 forecast on April 27, and Morgan Stanley initiating coverage with an Overweight rating and an $8 forecast on February 9.
Technical Picture Remains Mixed
Nokia remains in a short-term correction. The stock trades 19.5% below its 20-day simple moving average and 26.5% below its 50-day SMA, signaling that the recent downtrend remains intact.
However, shares are still 12.7% above the 200-day SMA, suggesting the longer-term uptrend has not broken.
Momentum indicators also remain weak. The moving average convergence/divergence (MACD) stays below its signal line, and the histogram remains negative, indicating bearish momentum. The 20-day SMA also remains below the 50-day SMA, reinforcing the short-term bearish trend.
The key technical support level is $10.00, a closely watched psychological price that could determine near-term trading direction.
NOK Stock Price Activity: Nokia shares were down 3.37% at $10.03 at the time of publication on Friday, according to market data.
