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Nokia Gets Upgrade Thanks to Microsoft Partnership

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Believe it or not, a section of investors still have hopes in Nokia Corporation (NYSE:NOK) (BIT:NOK1V). This bullishness comes as a surprise especially after considering Nokia Corporation (NYSE:NOK) (BIT:NOK1V)’s prolonged poor performance. While some may want to believe that this unexpected slant towards Nokia is driven by fanaticism, it is not the case.

Nokia Gets Upgrade Thanks to Microsoft Partnership

Guided research from ABG Sundal Collier-a research coverage company- suggests that Nokia Corporation (NYSE:NOK) is a buy, although the target price is 2.5 EUROs, Nokia is trading at 2.3 EUROS (not the ADR shares)

ABG’s research goes on to give detailed insights into Microsoft Corporation (NASDAQ:MSFT) (BIT:NOK1V)’s expected direction. You may be wondering where Microsoft Corporation (NASDAQ:MSFT) comes in. Apparently, it is believed that Nokia Corporation (NYSE:NOK)’s much needed comeback is bound to Microsoft Corporation (NASDAQ:MSFT)’s bright future.

Riding On Microsoft’s Back

Insights from the research report suggest that Microsoft Corporation (NASDAQ:MSFT)’s highly anticipated break is tethered around the corner. This positive outlook on Microsoft is motivated by the high expectations placed in Microsoft’s Windows 8 operating system. In addition to that, the report exclaims Microsoft’s bulging finances, highlighting the possibilities traceable to these finances.

While I totally agree with the foresight on Microsoft, I somehow disagree or rather inadmissibly agree with the take on Nokia. Just because the once successful handset maker is Microsoft’s strategic partner, doesn’t necessarily give it a free pass to bask in Microsoft’s imminent glory.

ABG’s research however begs to differ with my standpoint. The research report gives a conclusive inside scoop of Microsoft’s extended possibilities. Just a quick skim through the report reveals that Microsoft’s possibilities are brimming. A reasonably sized section of the report focuses on the Windows 8 operating system and goes on to highlight the opportunities it extends for Microsoft, and how Microsoft’s subsequent success will benefit Nokia, a strategic partner.

To give you an idea of how Microsoft’s performance will improve after Windows 8’s potential reaches the brim, you can take a look at this chart sourced from the research report.




From the chart, it is visibly evident that prospects will go through the roof once the Windows 8 operating system for PC, tablets, and smartphones picks momentum. This possibility, coupled with Microsoft’s strong financial tendon, spells a lot of hope for Microsoft and in my opinion will drive the company into a new realm of operation.

Nokia on the other hand, is a complete foil of Microsoft. It is neck deep in its own problems and I believe that it is going to take more than Microsoft’s success to pull it out of its morass of mediocrity. Just looking at its past activities paints a darker shade of gloom. With regards to smartphones, it aimed for the stars but landed on the moon. Its finances are also not all that impressive, and the possibilities of a huge leap in performance based on Microsoft’s possible success are remote.


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Sheeraz Raza

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