During the short squeeze renaissance of early 2021, Nokia (NYSE:NOK) stock fell into the riptide. Interest from WallStreetBets investors waned over the following months, but shares are now seeing renewed interest.
What's causing this jump in value for Nokia stock? What can investors expect moving forward?
Positive news for Nokia sends stock upward
According to a letter from Nokia Corporation, the company's fiscal fundamentals are looking better than expected. Because of this, its full-year outlook is on the upswing, which has invited more investors to take the bait for NOK stock.
Nokia CEO Pekka Lundmark wrote, "We are progressing well with our three-phased plan to achieve sustainable, profitable growth and technology leadership. [...] We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year."
While investors await specific metrics to confirm these statements, the enthusiasm is already growing. In April, Nokia shared an operating margin of 7 percent–10 percent as well as a return on invested capital of 10 percent–15 percent. The fundamentals have reportedly improved.
Nokia isn't your average WallStreetBets meme stock.
Most meme stocks in the WallStreetBets realm are centered around sentiment and not fundamentals. That isn't the case for Nokia stock, which has shown growth and improvement in addition to social popularity.
Also, Lundmark has made an impact on global retail and institutional investors since he filled the CEO role on August 1, 2020. Traders have been impressed with his business decisions and moves since joining the ranks, and NOK stock is clearly responding. Lundmark has already made big changes, like redirecting Nokia toward 5G and trimming the company's expense statement across the board.
Forecast for Nokia stock
NOK has grown an aggregate 52.2 percent YTD, and that's considering the 41 percent downswing in a five-week segment of the first quarter. Despite strong volatility, the shares have managed to increase in value during this period.
In response to an improved outlook for Nokia on July 13, the share price increased as much as 11.73 percent before evening out a couple of percentage points. Overall, investors see great potential in NOK stock.
What WallStreetBets users have to say about NOK
One WallStreetBets user wrote that Nokia is "not a meme stock, but a mid-term investment."
Another user pointed out the difference in share price that NOK has experienced over the long term. "At any rate, you're sitting pretty with your cost basis, while long time bag holders are getting excited to finally be getting closer to breaking even," they said.
Aside from Reddit users, others are bullish on Nokia, stating that the stock is way too cheap to pass up and friends should hop in on the ride.
For the average retail investor, due diligence goes a lot further than social sentiment. Awaiting Nokia's fiscal data could be beneficial to ensure that the investment is right for you. All things considered, NOK stock is in a special place in the market that other stocks might not be inhabiting—social popularity and growth potential in one.