In news of today’s action in pre-market trading, shares of Finnish cell phone maker Nokia (NYSE:NOK) are down again, way down, for the second consecutive day. Yesterday we warned that it was stormy seas ahead for Nokia, after the company refused to re-set financial targets following news of forthcoming very disappointing projections for its second quarter financials, which fell far below analyst expectations.
Today it seems as though these fears are coming to fruition, with the company trading down 9% in pre-market activity. Given the battering Nokia’s (NYSE:NOK) shareholders received yesterday, when the stock lost 18% of its value in less than twenty-four hours, this morning’s news is something of a “double dip” of its own for the cell phone maker’s stock, as the firm has now shed nearly 30% of its share value in the past two days of trading.
Having reached pre-market prices of under $6.40 per share this morning, Nokia is trading at its lowest level in thirteen years. To reiterate yesterday’s explanation, the sell-off on Nokia is thought to have been prompted by the company’s second quarter phone sale forecasts, which are expected to fall well below earlier estimates. The good news for Nokia is that the its problems may be more transitory than the market believes. The firm is currently in the midst of some major product changes, re-wiring its cell phones to be compatible with the Microsoft (NASDAQ:MSFT) Windows Phone Model smart phones, rather than the Nokia “Symbian” smart-phones, which struggled to impact the market, drowned out by smart-phones from leading competitor Apple (NASDAQ:AAPL), Research in Motion (NASDAQ:RIMM), and Google (NASDAQ:GOOG) .
Renowned investment banks JP Morgan Chase (NYSE:JPM) and Credit Suisse (NYSE:CS) both recently cut their price targets for Nokia (NYSE:NOK) stock, resetting estimated price levels at 4.25 and 4.00 euros per share respectively. Though things may seem dire for Nokia today, one JP Morgan analyst believes a recovery for the firm is possible, though not without successful new product sales, saying, “We see the earliest possible timing for the beginnings of a turnaround as the launch of new Windows products which we expect at the end of this year.”