What’s in a name? Nokia stock is undervalued
Nokia shares were undervalued last week after analysts said they are not profitable enough to keep them on the market.
They fell by around 1 percent on Wednesday before recovering some ground, according to data compiled by Bloomberg.
Shares of Nokia and Nokia Siemens Networks (NSN) are trading at less than $7.20 a share.
The companies had been trading at $8.00 a share before the recent news.
Nokia shares fell more than 7 percent in the last year.
The stock is down more than 12 percent this year.
Nokia was one of the first big names to go public when Facebook bought the company in 2012 for $26 billion.
Facebook is now valued at $16.5 billion.
Nokia and its software business were one of Facebook’s biggest investments.
Nokia has a $1.4 trillion cash cushion, according in the most recent quarter, and has long been a favorite of Wall Street investors.
The company said last week it was investing $100 million in a new research and development center in Finland.
Nokia Siemen Networks is a leading maker of telecommunications equipment and mobile communications, with products for mobile devices and servers for cloud computing.
The Finnish company said it plans to raise $1 billion from investors this year and will use the funds to expand its research and develop labs and new products.
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