Nokia shares jumped as much as 10% on Wednesday as Reddit’s day-trader army boosted the name.
The Finnish telecommunications company has become the latest legacy tech star on Reddit’s WallStreetBets forum.
“It is as if someone found a newspaper from 2006 to identify who were the golden tech companies from back then,” Neil Campling, an analyst at Mirabaud Securities, said in written comments, per Bloomberg.
“Then add in the perceived attraction of a low absolute dollar stock price in the single digits, and a brand people remember and bought blindly hoping they had discovered the next Tesla,” the analyst concluded.
Legacy tech names and struggling retailers like Blackberry and GameStop have seen incredible spikes in share prices in 2021 on the back of soaring trading volume from retail investors.
For Nokia, the share price increase comes as the company continues its 5G battle with competitors Ericsson and Huawei.
On Wednesday, Nokia announced it is set to roll out the world’s first 1T (terabit) clear-channel interface deployment with fellow Finnish telecommunications company, Elisa.
As communications service providers find themselves increasingly stretched by the IP-routing requirements of cloud computing, gaming, AI, IoT devices, and more, a stronger, faster connection is more relevant than ever.
And that’s what Nokia hopes to provide with its 1 terabit clear-channel interface. The interface will offer a 10x boost in capacity and simplify operations for service providers.
Kalle Lehtinen, CTO at Elisa, said of the deal, “Elisa continues its string of world firsts with this record-breaking IP routing capability achieved with Nokia, enabling us to leapfrog an 800G progression that other service providers are only strategizing about.”
Lehintnen continued, “this strengthens our position as a global 5G leader and gigabit broadband service provider, allowing us to stay ahead of the curve and maintain our commitment to our customers.”
In another bullish development for Nokia, the company received a positive report from SEB, one of the largest financial institutions in Scandinavia. SEB raised its target price from $4.25 to $4.60 per share, reiterating its buy rating on the stock.
Nokia share traded at $5.12 as of 10:14 AM EST, giving the company a market cap of $28.81 billion.