Nokia Shares Plunge 1.58% as HMD Global Exits U.S. Market

Nokia Corporation (NOK) shares fell 1.58% today, marking the third consecutive day of decline, with a total drop of 3.30% over the past three days. The share price hit its lowest level since April 2025, with an intraday decline of 2.17%.

The strategy of buying Nokia (NOK) shares after they reached a recent low and holding for 1 week yielded moderate returns but came with considerable volatility. The annualized return was approximately 3.5%, with a maximum drawdown of about 25% during the backtested period. This approach worked well in terms of capital appreciation but had a significant drawback in terms of risk, highlighting the importance of risk management in such a strategy.

HMD Global's decision to exit the U.S. smartphone market has significantly impacted Nokia's stock. This move is expected to limit Nokia's near-term handset revenue, as HMD Global has been a key partner in the smartphone market. The exit could lead to a reduction in Nokia's market share and revenue, which has contributed to the recent decline in its stock price.

In addition to the market exit, Nokia has experienced unusually high options trading activity. Traders have been acquiring a significant number of put options, which typically indicates a bearish sentiment towards the stock. This increased trading activity suggests that investors are anticipating further declines in Nokia's share price, adding to the downward pressure on the stock.

These factors combined have created a challenging environment for Nokia, with both market dynamics and investor sentiment contributing to the recent decline in its stock price. As the company navigates these challenges, it will be crucial for Nokia to adapt its strategies to mitigate the impact on its financial performance and regain investor confidence.