Nokia’s Belgian Network Deal Fails to Halt Slide as Margin Concerns Weigh Ahead of Earnings
Published on 07/07/2026 at 22:02 | Redaktion boerse-global.de
Nokia’s multi-year contract with Orange Belgium to build a unified optical transport network was met with a shrug from investors, as the stock dropped 5.11 percent on Tuesday to €10.39. The decline followed a close of €10.95 on Monday and marked another instance of positive news failing to lift the shares. The ADR on US markets slipped 3.92 percent to $12.02, while S&P 500 futures turned negative.
The Belgian deal sees Orange Belgium pick Nokia as its sole supplier for a project that will converge fixed and mobile networks onto a single high-capacity backbone. It is the first time an Orange subsidiary has deployed Nokia’s 1830 PSS hardware for the core network. The transformation will be managed by Nokia’s AI-driven WaveSuite platform, part of a broader push into autonomous networks. Nokia’s “Autonomous Networks Fabric” is on track to reach level four autonomy this year, and the company has developed six Gemini-based AI agents that it says can cut network fault resolution times by 50 to 80 percent.
Yet the market’s reception has been muted, with many analysts viewing the technology pipeline as unproven until it translates into improved margins. Nokia’s net margin currently stands at just 4.0 percent, well below its three-year average of 7.8 percent. The AI overhaul is costing earnings in the near term. Revenue has finally turned around after years of contraction – up 4.3 percent to €20 billion – but the price of that growth is evident in the profit line.
Should investors sell immediately? Or is it worth buying Nokia?
Tuesday’s move adds to a broader corrective phase. The stock has lost 30.59 percent from its 52-week high of €14.97 reached on June 3. It now sits 13.89 percent below its 50-day moving average of €12.07, while remaining 37.02 percent above the 200-day average of €7.58 – a sign that the long-term trend is still intact despite the recent pullback. The 14-day relative strength index has fallen to 38.2, approaching oversold territory, and the 30-day annualized volatility of 72.18 percent underscores the jittery trading environment.
Over a 12-month horizon, the stock is still up 136.57 percent, and year-to-date gains stand at 86.60 percent. The distance from the 52-week low of €3.49 from August 1, 2025, is 197.37 percent, confirming that the current setback is a correction within a much larger rally rather than a trend reversal.
Adding to the uncertainty, FMR LLC’s stake in Nokia slipped below the 5 percent reporting threshold. Market participants regard the move as a technical adjustment rather than a strategic exit, but it has contributed to the cautious sentiment.
All eyes now turn to July 23, when Nokia reports second-quarter results. Management must demonstrate a path to improving margins, with the comparable operating profit for the quarter expected to account for 12 to 16 percent of the full-year target. The earnings release will be the decisive test of whether Nokia’s AI- and cloud-driven growth story can deliver the profitability the market demands.
Ad
Nokia Stock: New Analysis - 7 July
Fresh Nokia information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
