In addition to falling profits, the Financial Times reports Nokia has also been embarrassed by a software bug in its new Lumia 900. The new phone is supposed to be a game changer for the company, but the Easter Sunday launch did not go well, not least because many stores are closed on Easter.
Nokia released a patch for the software bug on April 13, three days ahead of schedule.
Even though Nokia has partnered with Microsoft (MSFT, quote), competition from high-end Samsung (SSNLF, quote) phones and cheaper Chinese models have been devastating for the stock. In the week following the launch of the Lumia 900, NOK fell 21.33%. Year to date, it is down 16.60%. For the last 52 weeks, it has fallen 51.15%.
The professional investor community is backing away as fast as it can. On April 12, Barclays downgraded the stock from Overweight to Weight with a target price of $4. On April 13, Zacks Equity Research downgraded Nokia Corporation to underperform.
The short float for Nokia Corporation is now 5.95%, a bearish sign. The trend is definitely not the friend of the shareholders of Nokia Corporation as the share price is double digits below the 20-day, 50-day and 200-day moving averages.