Nokia Stock Price Prediction For 2021

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Nokia Corp. (NYSE: NOK) had some wild ups and downs in 2020. But as you are probably aware, it wasn't alone.

The S&P 500 knocked off as much as 27% in the big COVID-19 crash. It's since rallied to all-time highs above 3,600.

Nokia stock didn't have quite as clean a trajectory. It followed the broad market on the crash, falling 43% to $2.53. It spent the next three months doubling, crossing the $5 threshold, then the next three receding again.

Now, the Finnish company sits close to its 52-week average, at $4.07.

Analysts had hoped this stock could trudge toward $5 again in the coming months. Today, we're going to explore whether or not that's feasible.

A Nokia stock price prediction for 2021 requires us to ask just how tethered Nokia is to the broad market, or if its stock price is more a function of 5G sector growth.

There's a lot to suggest Nokia could surge on 5G anticipation. Let's start by looking at where the company stands in the 5G industry right now.

Nokia's Latest 5G Win

Nokia is one of the major players in the budding 5G market. The company supplies a range of products and services necessary for a 5G network, including chips, radio, cloud, automation, and security.

The 5G industry is expected to hit $667 billion by 2026, according to Allied Market Research. That's a 1,526% leap from around $41 billion value this year.

To get a piece of that, Nokia will have to beat a few of its global competitors in the market. And it's still unclear whether that's happening.

The other two major players it's facing are China's Huawei and Swedish rival Ericsson (NASDAQ: ERIC).

Both companies are larger than Nokia, a $23 billion market cap company. Ericsson has a market cap over $37 billion, and Huawei came in at $121 billion in 2019.

All three companies have their hands in different sectors, but 5G will be their primary race in the years to come.

This is a race to see who can supply network operators worldwide with 5G technology – that is, mobile chipsets for radio and 5G antennas.

On Oct. 2, Nokia announced it had acquired its 100th commercial 5G contract. However, it was the last of these three companies to do so. Ericsson did it only two months earlier.

Better news for Nokia recently was that the company staked its claim in Togo, initiating a launch to build the first commercial 5G network in West Africa.

The company made a deal with Togocom on Nov. 30 to deploy 5G across the country of Togo.

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William K. 1 month ago Member's comment

An interesting article, lots of talk about the future..

But folks need to know that while 5G is the current "Next Big Thing", work is already in progress to create it's replacement and the next "Next Big Thing."

The industry goal has always been to make the current generation become obsolete about the same time the products become commodities.