Why Nokia Sank today
Shares of Nokia Corporation (NYSE:NOK) plunged on Thursday, along with the rest of the AI-related tech sector, falling 15.4% as of 3:49 p.m. EDT.
Nokia delivered an earnings beat this morning; however, in this earnings season, tech company earnings “beats” don’t mean much unless they’re truly massive. Overly high expectations, along with fears over the sustainability of AI spending, appear to be weighing on Nokia’s stock today.
Like most AI stocks, Nokia had already rallied this year heading into this earnings report, though the stock was well off its June highs. Still, Nokia entered trading today with a P/E ratio in the high 70s, leaving little room for disappointment.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.