Jim Cramer Says He “Would Be a Buyer Right Here, Right Now” of Nokia (NOK)
Jim Cramer expressed bullish sentiment on Nokia (NOK), citing its partnerships and growth in AI and cloud services. Nokia's Q2 results showed a 105% YoY increase in AI and cloud sales, with CEO Justin Hotard noting €2.8B in AI and cloud orders. However, the company reported a €50M operating loss and negative free cash flow. Nokia expects Q3 operating profit to be in line with Q2, with improvements in Q4. Hedge fund holdings increased to 81 in Q2, while short interest remained low.
How this was made
The 30-second read
Why it matters
The earnings miss may trigger short‑term sell‑offs, while AI growth could attract long‑term investors.
Market read
Nokia’s Q2 results provide fresh data on AI revenue growth versus profitability, a key factor for telecom sector investors.
What to watch
Restructuring charges are one‑time; future cash‑flow conversion assumptions could improve if capex is managed.
Background
Jim Cramer’s endorsement adds a bullish narrative, but the earnings release shows significant cash‑flow strain.
Ticker impact
Nokia reported Q2 results with 105% YoY AI sales growth, €50M operating loss and negative free cash flow.
Potential short-term downside pressure; watch for support around recent lows.
Guidance shows operating loss and high capex, outweighing AI sales upside.
Market effects
AI‑related networking demand may benefit peers, but profitability concerns could dampen sector enthusiasm.
European telecom stocks may see mixed reactions as Nokia’s cash burn raises risk concerns.
Highlights the challenge of turning AI order intake into profit for hardware manufacturers worldwide.
Counterpoint
If AI sales sustain momentum, the operating loss could be a temporary transition cost, offering a buying opportunity.
Key entities
- companyNokia Oyj
Finnish telecom equipment maker listed on NYSE as NOK.
- personJim Cramer
Host of Mad Money, providing a bullish comment on Nokia.
