TRADE NOKIA (NOK) STOCK WITH IQ OPTION
Before you get into trading, make sure to check out Nokia (NOK) chart to get all information you need.
Let us take a look why trading Nokia stock is a great idea for you:
- The right partnership moves
Nokia is one of the few companies that continue to invest in the 5G technology, but it has not been able to maintain the pace. It was not able to roll out its 5G network in 2020 due to the pandemic. It left an impact on revenue and growth. However, Nokia did not give up. The company is already chasing its goal to make it big with 6G. It is working with a group of companies and universities to develop 6G mobile technology. Known as Hexa-X, it is going to be the new generation of mobile tech. with the rising possibilities of Nokia making a breakthrough with 6G, it can open big opportunities and take its stocks to new heights.
The company holds 15% of the market share in the global industry. Despite losing 5G contracts with China Mobile, Nokia keeps on marking its presence across different countries. Specifically, the company has collaborated with the Telecommunications Research and Development Centre in Brazil in order to develop customised applications and solutions on the open RAN on the market of Brazil.
Moreover, Nokia has recently partnered with Elisa in a private mobile network push. The companies are going to collaborate to assist Finnish organisations in accelerating digitisation. NOK is also in an ongoing partnership with IBM to deploy 5G.
It is clear that the company is making the right strategic moves, which is profitable in the long run. When it comes to partnering with organisations around various countries, Nokia has the resources to deploy. Even if it has no significant achievement with the 5G rollout, the company has enough contracts to continue with its agenda.
- The exciting cash flow position
In Q4 results, Nokia was able to beat the revenue estimates and the company hit 6.57 billion euros in sales. The net sales grew 1%, and the operating profit declined by 41% year-over-year. The notable thing here is the company is free cash flow positive. It means that it has enough money to put into partnerships, dividends, and 5G rollout.
A free cash flow of 1.356 billion euros was reported by the company in 2020 and 778 million euros in Q4. In Q3, it only had 319 million euros. This suggests that there was a significant increase in the last quarter. It is the third consecutive quarter of positive cash flow.
In the Q4, the cash flow goes 144% higher and beats the company prediction of 600 million euros. Considering the fact that the slowdown in business is because of the pandemic, the free cash flow generation is impressive. Even if a significant rise in sales and revenue has not seen in the company, the free cash flow is enough for business growth. This solid liquidity position can drive growth in the following year.
- Analysts are hopeful about NOK stock
Analysts know the best when it comes to the financial markets you may want to trust their intuition before making trading decisions. Wall Street analysts are bullish on the Nokia stock. Northland Capital Markets analyst Tim Savageaux maintained an outperform rating on February 8 with a price target of $5.50. An equal weight rating was maintained by Barclays and the price target was raised to from 3.15 euros to 3.30 euros. Deutsche Bank analyst Robert Sanders also maintained a buy rating with a price target from 4 euros to 4.60 euros.
Nokia Chart: NOK Stock Price
Benefits Of Trading Stocks Instead Of Buying Them
Stock trading is a very different approach to take part in the stock market than purchasing stocks. People who go for buying stocks do it for the long-term results, but traders typically buy and sell quickly to earn short-term profits. If you pay close attention to this, you can see that stock trading is better than buying. First, it offers quick action with high potential for bigger profits over a short period. Secondly, a vast range strategies involved in stock trading allows traders to earn profits in bullish markets as well as bearish markets. An experienced trader can choose to trade full-time because the money earned by the profits generated from stock trading is enough to live a good life.
How to Conduct Trade on Nokia (Nok) Stock with IQ Option
You can trade Nokia stock on IQ Option easily by following these steps:
- First, choose the Nokia stock by clicking the plus button at the top of the trading platform of IQ Option. After clicking the plus button, click on ‘Stocks’ and select Nokia.
- After that, it is time to choose the amount you want to invest in the trade.
- Then, set the leverage for the trade.
- Now, you can pre-set your take profit and stop loss orders. To do this, you can use the ‘Auto Closing’ function. These order types can also be set after the position opens.
- For pending orders, you need to enter the price at which you wish to enter the market.
- During the trade, click ‘Sell’ for a short (sell) position and click ‘Buy’ for a long (Buy) position.
Final Thoughts
You cannot deny the overwhelming influence of Nokia. The company has a huge potential for 5G and it is valued reasonably. By executing well and delivering on the potential, the stock has an upside. The partnership with IBM and 6G potential is more of a reason why you should consider trading Nokia stock. The stock is well-priced with a market capitalisation of 35 billion. For now, it must be a small part of your portfolio. You may visit the trading platform of IQ Option to know more about the benefits of stock trading on this platform and the features provided by the broker to make trading easier for you.