Nokia share price hits 15-year low as Fitch downgrades it to 'junk'

[+Frank B. Subscriber²]

Nokia share price hits 15-year low as Fitch downgrades it to 'junk' status

We may look back on this day as the point from which Nokia bounced back up, but for now at least, the struggles over in Espoo are being judged harshly by the financial markets. The Fitch ratings agency has followed Moody's and Standard & Poor's in downgrading Nokia stock, but it has gone one step further in dropping it all the way down into the "junk" category, adding a negative outlook for the future as well. Nokia's own expectations for the next financial quarter aren't much happier, but the company could have done without financial analysts piling on in this fashion. The stock price for Nokia shares has also hit a 15-year low today, as noted by Reuters, a continuing negative reaction to the downbeat Q1 2012 financial report and near-term outlook.

Source: The Verge

[bogas04]

sad :/

[Salutary7]

It's a little risky, but investing long term in NOK may not be so bad since it seems MSFT is willing to bankroll their success.

[Rudy]

It's a little risky, but investing long term in NOK may not be so bad since it seems MSFT is willing to bankroll their success.

Personally I wouldn't bet on that

[UndergroundWire]

I'm sure nobody here is surprised. They knew the risks of not developing an Android phone and focusing only on Windows Phone. They have a lot of money on hand so if Windows Phone ever gets out of its slump, Nokia can be successful once again.

[~Johnny]

If I had the money, I'd probably try and buy some of their stock myself, just a bit before Microsoft announce WP8 :p

[Propheta Messias]

It's a little risky, but investing long term in NOK may not be so bad since it seems MSFT is willing to bankroll their success.

Personally I wouldn't bet on that

I would have to agree. Looking into it now.

[Dc'1]

Personally I hadn't heard of Nokia since the 3310 era, until now with the Lumia series. I think the Lumias will be the turn around for Nokia, the 800 must be the nicest looking phone I've seen in a long time.

[rajputwarrior]

i wouldn't invest in them. i think their wp strategy is going to fail hard.

[lt8480]

Investing in Nokia right now will have one of two outcomes long term. Huge success or massive failure. If anyone thinks they can call it either way they are an idiot. It's a betting mans game.

[techbeck]

i wouldn't invest in them. i think their wp strategy is going to fail hard.

I would half to agree for right now. In any case, it will take them a while to be profitable again even if WP does well.

[neufuse Veteran]

in the USA Nokia seemed to always be looked at as the I don't give a crap about it phone... very few models sold here, usually just low end ones... it was also Motorola, samsung and LG it seemed like

[.Neo]

If I had the money, I'd probably try and buy some of their stock myself, just a bit before Microsoft announce WP8 :p

I think a large portion of Microsoft's and Nokia's credibility will revolve around existing phones being upgraded to Windows Phone 8 or not. Windows Phone's position is pretty fragile as it is it might have a hard time surviving the potential fallout if Microsoft decides to drop support for previous models.

[techbeck]

I think a large portion of Microsoft's and Nokia's credibility will revolve around existing phones being upgraded to Windows Phone 8 or not. Windows Phone's position is pretty fragile as it is it might have a hard time surviving the potential fallout.

Not only that, but MS was late to the game and Nokia took its damn time releasing the hardware. A year is a long time in the tech world and a lot can change. I think MS needs to focus on more features and more of the capabilities of WP instead of comparing how long it takes to look up weather and post a pic to Facebook. I also have not seen one advert on TV for WP7. Maybe I am missing them but when Samsung announces a new product, I see their adverts on TV a few times a day.

[.Neo]

Personally I don't think there's such a thing as being "too late" in the tech space as long as you bring something new to the table people want. I do think that a lot of consumers lost faith in Microsoft and can't be bothered to give the company a second or third chance since there are more than enough viable alternatives available to them. From the get-go Microsoft managed to screw over Windows Phone 7's fresh start by allowing phones to be sold in countries without supporting so much as the language. Carriers actually ended up putting signs in their stores and on their websites warning people against buying a Windows Phone because the return rate was astronomical. Not to mention the company had a poor track record to begin with because of Windows Mobile 6' poor performance.

Microsoft received a fair doses of negative attention people aren't quick to forget. Even carriers and store clerks are still hesitant to actively recommend a Windows Phone, I see this happening all the time. It will be interesting to see if with Windows Phone 8 they've learned from the past or repeat their mistakes by screwing their user-base over once again.

[micro]

Of course the verge reported on this...

I am no longer going to visit their site.

[.Neo]

Of course the verge reported on this...

I am no longer going to visit their site.

Neowin reported on this too so you might want to leave this place as well. Goodbye.

[micro]

Neowin reported on this too so you might want to leave this place as well. Goodbye.

I've been here longer than you, and i know that neowin is fair in reporting news. Theverge on the other hand has an OBVIOUS agenda when it comes to microsoft, specifically anything windows phone related.

[tsupersonic]

They probably would have been better off with Android.

[.Neo]

I've been here longer than you, and i know that neowin is fair in reporting news. Theverge on the other hand has an OBVIOUS agenda when it comes to microsoft, specifically anything windows phone related.

The Verge isn't the one who lowered Nokia's status... They're merely reporting on the news in a neutral and objective fashion, no different than Neowin did. Also, I came here a lot earlier than than 2005.

[Miuku.]

They probably would have been better off with Android.

Or would they?

They would've been yet-another-generic-Android manufacturer that would have had little apart from basic design and name to sell. If anything, they should have gone the N9 road and develop Meego further, it blows Android into little chunks in performance not to mention looks damn good.

[.Neo]

They would've been yet-another-generic-Android manufacturer that would have had little apart from basic design and name to sell. If anything, they should have gone the N9 road and develop Meego further, it blows Android into little chunks in performance not to mention looks damn good.

Meego looked amazing interface-wise. Real shame they didn't go further with it or Google taking over its design.

[techbeck]

Of course the verge reported on this...

I am no longer going to visit their site.

Then you may want to go here and write down all the sites reporting this story since hey, if you are not going to visit the Verge, then you may as well not visit all the others sites.

https://www.google.com/search?q=fitch+lowers+nokia+status&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:unofficial&client=firefox-a#hl=en&client=firefox-a&hs=g6S&rls=org.mozilla:en-US%3Aunofficial&sclient=psy-ab&q=fitch+lowers+nokia+rating&oq=fitch+lowers+nokia+rating&aq=f&aqi=q-A1&aql=&gs_nf=1&gs_l=serp.3..33i29.3594.4086.0.4545.6.5.0.0.0.0.379.1144.0j2j2j1.5.0.rfeeBBfaqw4&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.,cf.osb&fp=ff42559d799f52a1

I've been here longer than you, and i know that neowin is fair in reporting news. Theverge on the other hand has an OBVIOUS agenda when it comes to microsoft, specifically anything windows phone related.

Obviously you dont pay attention since you have not seen the all the biased articles posted by a lot of the Editors here. And the verge is just reporting the story like all other news sites have done for years.

[Depicus]

Nokias problem is not only WP -v- Android but their dumb phone market is tanking as well. Others are edging them out.

I have a Lumia 710 and while I like the phone it is behind in the race and the legendary build quality Nokia was known for on their dumb phones has gone. I cannot see where they are going and suspect neither can they. Sad.

[mrmomoman]

I wouldn't count them out yet. Part of their estimates were something they knew could happen but the slow adoption rate in Europe wasn't anticipated. China and India could be a big market for them and if they can continue to drive that market and increase their footprint they can survive rather well without Europe's fast adoption. The US so far has given them good acceptance and it will be further pushed when Verizon pushes the Apollo or WP8 phones. The Iphone is losing its saturation rate in the market and as expected they will continue to do so as MFR's step up their game with better designs such as a HTC One X/S, Samsung Nexus/Galaxy and Motorola Droid lineup. HTC took one across the chin for too many phone releases last year and had learned the hard way. I hope that many Phone Mfrs learn from this. You fragment the market and the market will respond in kind. We don't need 30 phones a year from one company. Serve other markets with a few phones per market. Design better hardware not just cram specs down our throats.

What WP 7.5 has shown other OS's is that you can design a better OS through engineering and not just increased specs alone.

The Lumia lineup is the appetizer to the Apollo/WP 8 main course. The Windows Phone lines up needs HD displays, removeable storage or increase capacity at least to 32GB along with 2nd GEN LTE on a chip and dual processors. Verizon can push phones when they want to. Look at Motorola and the DROID lineup. They have pushed so well people call most ANDROID phones DROID phones it seems.

MS has my vote of confidence with Windows 8 and WP8. Nokia will make some radical changes in WP8 much greater than they have done at the moment. That will be true test of their future and I hope its a bright one for them.

I want 4" phones to come back in droves. 4.3" is too large for single handed use for most people. No I don' t have girly hands :) Apple wasn't stupid in their design of the 3.5" screen when it comes to single thumb texting and usage.

I would not put the stock at JUNK rating that is just a bad call. I would put them at neutral and continue to hold my shares as well as buy some new shares. I like the underdog and I think this dog will hunt again by the end of the year.