Nokia stock soared a whopping 16% in premarket trading, after posting surprisingly impressive performance numbers in Q1. The main reason behind this surge is thanks to 5G, but nevertheless, analysts did not expect things to go so swimmingly for them at this juncture.
Back in October, the Finnish telecom company innovatively came up with an idea to streamline into four separate groups of business, believing that this would be the best way to tap into the 5G market. According to Chief Executive Pekka Lundmark, they would do “whatever it takes”.
After a few years that were less than satisfactory, Nokia investors will be happy to learn that their new strategy is actually paying off.
Not only did Nokia’s year-over-year net sales grow by 3%, but their comparable net profit hit the impressive number of €373 million ($452 million). This was primarily thanks to substantial sales in 5G equipment, as well as the network infrastructure that it’s a part of.
As a result of this major change in fortune, Nokia shares rose 14% in early trading. Investors were clearly happy with Nokia’s impressive performance, and others have been eager to jump on the bandwagon. It’ll be interesting to see if Nokia’s growth continues to rise in 2021, or if their Q1 success was just a fluke.
