• NYSE:NOK shares are up 3.5% on Wednesday as retail stocks recover ground.
  • r/WallStreetBets favoured stocks all bounce from Tuesday lows.
  • Nokia Oyj (NOK) performing strongly in 2021 as retail traders poured in.

Update Feb 03: Nokia (NOK) recovered on Wednesday as the retail trade looked to bounce back. Shares in Gamestop (GME), Blackberry (BB), AMC and others all bounced on Wednesday as retail brokers reduced purchase restrictions on selected shares.

Update: Nokia (NOK) shares suffered during Tuesday's session as the Reddit-fueled rally in certain names appeared to fizzle out. The catalyst was likely the large fall in Gamestop (GME) short interest and borrowing costs, meaning new shorts could take advantage of the elevated prices. Nokia (NOK) and Blackberry (BB) had been seen by the /wallstreetbets traders as former tech giants waiting to be turned around and both had high short interests.

See also: GME collapses as short interest drops.

Update: Nokia is knocked down – NYSE: NOK has been on the back foot in Tuesday's session, falling around 10% to $4.42. Shares of the Finnish telecom company – once the dominant mobile phone maker – is returning to its image of a fallen giant. While Nokia is not falling as much as GameStop (NYSE: GME), it is still shedding ground. Can it recover? It is essential to remember that the firm reinvented itself and may have room to rise based on fundamentals related to its current business. Nevertheless, it is struggling to cope with the shift of WSB traders to silver, abandoning previously hot stocks. For other stocks, see  Best Stocks to Buy Forecast 2021: Vaccines and zero rates to broaden recovery

Update: Nokia (NYSE:NOK) has risen by 7.24% on Monday, beating the trend of other short-squeezed stocks highlighted on Reddit's WallStreetBets. Moreover, Tuesday's premarket trading, is only a minor slide. Retail traders have "migrated" to silver, which is a far bigger market but may return to short-hunting on companies such as Nokia. Moreover, the Finnish firm has been reinventing itself in recent years and has a decent bullish case behind it.

NYSE:NOK has been reeled into the current Wall Street war between hedge fund managers and the Reddit subgroup r/WallStreetBets and it is not even a highly shorted company. Shares of the Finnish telecom giant sank by 2.77% on Friday and the stock closed at a price of $4.56 to end a tumultuous week on Wall Street. Nokia saw a daily transaction volume of over 358 million shares, which is more than five times the average daily volume of 70 million shares. During the past week, Nokia hit a new 52-week high of $9.79 before settling back down to its current price levels.

It has been quite the week for Nokia shareholders who unexpectedly got swept up in the great short squeeze of 2021. While other stocks like GameStop (NYSE:GME) and AMC (NYSE:AMC) are known to have massive short positions against them, Nokia does not, which makes it all the more confusing as to why it has been included. Because of its recent trading volume, mobile trading platform Robinhood has added Nokia to its banned stock list to limit how much investors can trade it. 

NOK stock forecast

NOK stock price chart

Like BlackBerry (NYSE:BB), Nokia actually has its own legs to stand on after the r/WallStreetBets rally ends, as the firm is still a global leader in telecom services. For its part, Nokia is already trying to distance itself from the movement, publicly stating that they are not aware of any material, undisclosed corporate developments or material change. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD is easing back towards 0.7000,  fading the rebound led by China's central bank LPR rate cut. A US dollar rebound, despite improving mood, weighs heavily on the aussie. The pair ignores the uptick in the S&P 500 futures. 

AUD/USD News

EUR/USD skids to near 1.0550 as risk-on impulse fades, Eurozone data eyed

EUR/USD skids to near 1.0550 as risk-on impulse fades, Eurozone data eyed

The EUR/USD pair has witnessed a minor fall after breaching the early Asian session’s consolidation formed in a narrow range of 1.0579-1.0588 as the risk-off impulse rebounded. The asset has slipped to near 1.0550 and is expected to remain uncertain.

EUR/USD News

Gold bulls recapture 200-DMA, more gains likely? Premium

Gold bulls recapture 200-DMA, more gains likely?

Gold Price is headed for the first weekly gain in five weeks this Friday, despite posting small losses, in the wake of a sharp rebound in the US dollar. The dollar recovers its ground even though risk sentiment remains in a fairly better spot, with the S&P 500 futures up 0.65% on the day. 

Gold News

How to trade the next 20% upswing in Binance Coin price

How to trade the next 20% upswing in Binance Coin price

Binance Coin price is on a recovery rally and shows promise of a further uptrend. Adding credence to this run-up is the price inefficiency that is likely to propel BNB higher. Binance Coin price crashed to $205 on May 13 as the crypto markets crumbled due to the LUNA-UST debacle.

Read more

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla's stock slips as it is kicked out of the S&P 500 ESG index. Elon Musk reacts aggressively, calling it a scam. Growth fears dominated and weighed on the overall market mood, leading to a negative close on major Wall Street indices. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures