Nokia Crushed Earnings — and Dropped to Its Lowest Close Since April
Nokia inventory closed at $9.73 on Thursday, down 5.35%, its lowest shut since April 2026. The decline erased the 0.618 Fibonacci golden pocket at $10.41 and prolonged a slide that started in early June.
The selloff adopted a second-quarter report that beat estimates however paired accelerating AI demand with warnings on reminiscence shortages. NOK now trades roughly 44% beneath its June peak of $17.45.
Why Nokia Stock Is Falling Despite a Q2 Earnings Beat
Nokia’s second-quarter results seemed robust on paper. Comparable working revenue rose 18% year-over-year to €434 million, above the €382 million analyst consensus. Net gross sales reached €4.82 billion, up 9%.
Sales to AI and cloud clients doubled to €446 million, whereas new orders from the phase hit a document €2.8 billion. Nokia focused this market after a robust Q1, when hyperscaler spending first lifted its optical enterprise.
However, traders offered the outlook slightly than the quarter. CEO Justin Hotard warned that reminiscence shortages could persist into 2027, as AI corporations take in the trade’s DRAM provide and push part costs greater.
“That’s in all probability the one which we see as most vital,” Hotard mentioned this about reminiscence constraints in the course of the earnings call.
Meanwhile, legacy weak point persists. Fixed Networks income fell 13% as telecom operators delayed spending, and Nokia guided for third-quarter working revenue to be broadly flat versus Q2.
The sector backdrop made issues worse. Ericsson fell almost 12% on July 14 after flagging the identical reminiscence value inflation, dragging telecom gear friends decrease. Cracks in memory shares and broader AI profit-taking added stress on a inventory that was nonetheless up about 85% for the 12 months as not too long ago as mid-July.
NOK Price Analysis Shows the Golden Pocket Flipping to Resistance
On the each day chart, Nokia inventory has been falling since June 3. The Fibonacci retracement drawn from the January low of $6.06 to the June high of $17.45 now maps the decline.
NOK first misplaced the 0.382 stage at $13.10 in early July. More importantly, this week it broke beneath the golden pocket, the 0.618 retracement at $10.41. That zone acted as assist in April, and its loss suggests it could now work as resistance.
The quantity spike in the course of the newest drop is important. It signifies conviction behind the promoting, which favors a continuation of the downtrend.
The subsequent goal sits on the 0.786 retracement at $8.50, round 12.6% beneath Thursday’s shut. This stage additionally aligns with the consolidation space from March and April, which might strengthen it as a requirement territory. In distinction, a each day shut again above $10.41 would invalidate the bearish outlook.
Nokia RSI Confirms the Breakdown as Momentum Turns Bearish
The each day Relative Strength Index (RSI) tells the same story. Nokia’s RSI had revered an ascending assist line from November 2025, testing it efficiently thrice, in February and twice in June.
The indicator misplaced that line in late June. Furthermore, the July bounce was rejected exactly at its underside, confirming the outdated assist as new resistance. Price and RSI have each declined sharply because the rejection.
The RSI now reads close to 32, simply above the oversold threshold at 30. A dip beneath 30 might produce a short-term bounce, related to different oversold names within the current chip rout. However, the momentum construction stays bearish whereas the damaged trendline caps recoveries.
For now, the trail of least resistance factors towards $8.50. Relief in reminiscence prices or robust second-half supply might revive the AI development story, however a breakdown beneath $8.50 would expose the $6.06 anchor low.
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