Shares of Nokia Corp. (NYSE: NOK) have hit new 52-week low of $4.01 today following a downgrade from Barclays. And the hits just keep on coming.
The company’s credit default swaps (CDS) have hit a new high of 500 yesterday, a jump of 70 basis points. That jump came a day after the company warned on earnings (our coverage here) and offered buyers a free phone as the result of a glitch in the Lumia 900, the company’s first phone to use the Windows Phone 7 operating system from Microsoft Corp. (NASDAQ: MSFT).
A large part of Nokia’s problems, though, are not the new phones, but collapsing sales of the older feature phones that use the Symbian operating system. The falling price for smartphones makes them more attractive because they offer so much more functionality for a small difference in price. The $100 Lumia 900 from with a two-year contract from AT&T Inc. (NYSE: T) would have been a terrific buy if the device hadn’t had a problem right out of the chute.
Nokia’s brand has been battered (see our story on America’s Nine Most Damaged Brands) and that will make the company’s recovery even more difficult.
Shares are trading down more than -4% about 90 minutes before closing today, at $4.06 in a 52-week range of $4.01-$9.42.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
