Chris Lau
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Chris Lau in Value Stocks,

Nokia Looks Lost

Former phone supplier Nokia (NOK) just completed its massive Alcatel-Lucent buy, is competing with Juniper Networks, Cisco, and Ericsson, but the company looks lost. Its buyout of a French fitness-gadget maker should confuse investors.

Wearable tech is hardly a proven path for profits. Apple is struggling with the Apple Watch. Garmin (GRMN) is pulling it off, as its shares are near yearly highs. Fitbit (FIT) dominates this space, but the stock is down 65 percent from highs.

Despite the new market for Nokia, the network giant may be taking the right step. The acquisition is small and should not distract the company. IoT, application development (with networking on the backend) key, and growth in wearables should add meaningful to Nokia’s play in wearables.

Nokia and its stock is lost right now, but there is hope. It did not buy Fitbit.