It’s been an interesting week in the tech world with Twitter finally going public, and Blackberry going under. Nokia’s stock, being quite active lately, saw much movement this past week, finally accomplishing something that I’ve been hoping to happen for quite some time: for the first time in nearly 10 years, the company’s stock price finally surpassed that of Blackberry.
This achievement comes at the heels of Blackberry’s recent woes, which include its failure to release the Blackberry 10 OS in a reasonable time-frame, devices that failed to make any dent in the company’s sales despite the marketing they put into it, and the recent announcement that the company not only is abandoning the search for a buyer despite dwindling marketshare, but also fired its short-lived CEO, Thorsten Heins. Shares of Blackberry plummeted more than 16% to a new low of $6.50, while Nokia continued to soar to nearly $8. As you can see from the chart comparison above, the last time Nokia’s stock price was above Blackberry’s was in May of 2004. Only one month later, BBRY shot up from USD6.66 to just under $23, while Nokia stayed just under $15. Fast-forward 4 years, and Nokia’s stock saw it’s highest point in a long time, just barely reaching $40. By that time, Blackberry shot way up at over $133, and remained above Nokia’s stock… until now. Seems Blackberry will never get a break.
The good news did not last long with Twitter’s IPO looming. On Thursday, November 7th, the stock debuted at $26 per share and shot up to just over $45, or nearly 73% of it’s initial price. At the same time, almost all other tech companies (or at least the ones I’m following such as Google, Apple, and Microsoft) saw their stocks fall quite a bit. As you can see from the above chart, Nokia fell from its recent high to about $7.45 during Twitter’s IPO, only to pick back up again the following day. This is likely due to Twitter’s stock getting downgraded and slammed by analysts who feel that the company, who has yet to turn a profit since its inception, “is simply too expensive at any level above the low $30s per share.” Nokia saw a rise back up to $7.65.
With a number of devices supposedly in the pipeline, including the heavily leaked Lumia 929 for Verizon, I’m confident that we can see Nokia’s stock climb well above $8 soon.