Key Takeaways
- Shares of Nokia declined approximately 5–6% on Friday as shareholders locked in gains following a remarkable 208% climb over the previous year.
- The Finnish telecom giant revealed plans to issue €500 million in senior unsecured bonds maturing in 2032 with a 3.625% coupon rate.
- The bond issuance will be used to refinance a €500 million note that comes due in May 2028.
- The stock continues to trade significantly above all major moving averages, suggesting the broader uptrend remains healthy.
- Mad Money’s Jim Cramer endorsed Nokia for investors willing to research the company but cautioned against chasing at elevated levels.
The telecom equipment maker has emerged as one of technology’s biggest winners over the past year, posting an impressive 208% gain across 12 months. When Friday’s selloff arrived, market watchers weren’t caught off guard.
Shares of Nokia (NOK) tumbled approximately 5–6% during Friday’s premarket session, trading near $15.74 ahead of the opening bell. The decline reflected a combination of investors booking profits and market reaction to the company’s latest financing move.
The telecommunications infrastructure provider disclosed a €500 million offering of senior unsecured notes scheduled to mature in June 2032, featuring a fixed annual interest rate of 3.625%. Nokia has submitted an application to list these securities on Euronext Dublin’s regulated exchange.
Management indicated the capital raised will support general corporate needs, with a specific focus on retiring the company’s outstanding €500 million bond that carries a 3.125% coupon and reaches maturity in May 2028. The company plans to execute an early redemption using the make-whole provision outlined in the existing bond agreement.
Following such a substantial price appreciation, maintaining upward momentum becomes increasingly challenging. When refinancing announcements emerge, certain market participants view them as opportune moments to realize profits — particularly during broader market weakness.
Nasdaq futures showed a decline of roughly 1.15% on Friday, while S&P 500 futures retreated 0.47%, contributing to widespread pressure throughout technology stocks.
Chart Analysis Remains Constructive
Despite Friday’s premarket weakness, Nokia’s technical structure hasn’t deteriorated. The equity continues trading 6.3% above its 20-day simple moving average positioned at $14.74, 30.1% beyond its 50-day average at $12.04, and more than double its 200-day average of $7.71.
The bullish golden cross formation that developed in October 2025 — marking when the 50-day average climbed above the 200-day average — persists and continues supporting the longer-term bullish narrative.
The MACD indicator remains elevated above its signal line with a positive histogram reading, signaling sustained momentum despite near-term volatility. Critical support levels to monitor include the 20-day SMA near $14.74. The next significant resistance zone appears at $17.45, representing the 52-week peak.
Cramer’s Take on Nokia
During Thursday’s broadcast, Jim Cramer expressed optimism about Nokia’s prospects, characterizing the company as a participant in the “fourth industrial revolution” and emphasizing its infrastructure capabilities in linking AI manufacturing facilities.
Cramer highlighted that Nokia’s networking infrastructure expertise — originally developed for transmitting voice communications and mobile data — now positions the company to handle AI-related traffic, edge computing demands, and advanced telecommunications workloads.
He also pointed out that NVIDIA’s CEO Jensen Huang purchased Nokia shares at $6 when valuations were considerably lower. Huang’s investment served as part of Cramer’s rationale for maintaining a favorable view of the stock.
However, Cramer added important caveats to his endorsement. He characterized current valuation levels as approaching “overbought” territory and suggested that patient investors could secure more attractive entry points by waiting for a price correction.
His guidance was to consider initiating a modest position for those prepared to conduct thorough due diligence, while cautioning against establishing oversized positions at present price levels.
Nokia traded around $15.74 in Friday’s premarket activity, representing substantial appreciation from Huang’s original purchase price.
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