Nokia Corp. (NYSE:NOK) stock fell nearly 4% Tuesday as reports of a major retreat from mainland China added to broader weakness in technology stocks. The Nasdaq fell 1.5%, while the S&P 500 lost 0.54%.
China Retreat Adds Pressure
The Finnish telecommunications equipment maker plans to cut most of its mainland China workforce and close operational sites in stages by year-end, the South China Morning Post reported, citing sources familiar with the matter.
The move would mark a major retreat after more than 40 years in China as domestic competitors gain market share.
Teams in Nokia’s mobile networks and network infrastructure businesses face layoffs in batches, according to a Shanghai-based source. The total number of affected employees remains unclear.
Nokia did not immediately respond to Benzinga’s request for comment.
Tech Weakness Adds To Selling
Nokia’s decline also came as technology stocks faced broader pressure. The sector fell 2.5%, making it the worst performer among the 11 S&P 500 sectors.
However, eight sectors traded higher, while the advance-decline ratio stood at 2.7. That suggests selling remained concentrated in growth and technology stocks.
Technical Analysis
Nokia shares are up 144.47% over the past 12 months. However, the intermediate trend has weakened.
The stock trades 10.1% below its 50-day simple moving average of $11.55 and 12.5% below its 100-day SMA of $11.86.
Still, Nokia remains 10.5% above its 200-day SMA of $9.40. Its relative strength index of 49.89 signals neutral momentum.
The $10 level is a key area to watch. A sustained break below it could put the 200-day SMA back in focus.
Analyst Outlook
The stock carries a Buy rating with an average price forecast of $18.00. Recent analyst moves include:
- Morgan Stanley: Initiated with Overweight (Forecast $8.00) (February 9)
- JP Morgan: Overweight (Raises forecast to $21.00) (June 12)
- Argus Research: Upgraded to Buy (Forecast $15.00) (April 27)
Price Action
NOK Price Action: Nokia shares were down 3.66% at $10.38 at the time of publication Tuesday, according to Benzinga Pro data.
Photo by Mercurious via Shutterstock
