Nokia Drone Deal Fails to Shield Stock from Broader Tech Selloff
27.06.2026 - 03:34:00 | boerse-global.de
Nokia’s shares slid sharply on Friday, giving back gains from a drone-defense announcement earlier in the week, as a broad-based retreat in European technology stocks overwhelmed company-specific news. The Finnish network equipment maker saw its stock close at €11.39 in Helsinki, a drop of nearly 7% on the day, and well below the €14.97 52-week high reached just three weeks ago.
The sell-off was not triggered by any negative corporate development. Instead, profit-taking swept across the sector: European tech stocks fell 1.2% on Friday, while the STOXX 600 shed 0.7%. Nokia was caught in the downdraft alongside peers like Ericsson. The decline pushed the shares below their 50-day moving average of €11.76, a technical breach that often spooks short-term momentum traders.
Just a day earlier, Nokia’s U.S.-listed shares had climbed about 3% on news that the company had joined a Finnish-Nordic consortium led by the Finnish Border Guard to develop next-generation counter-drone systems. Nokia’s role in the project is to supply a secure, high-performance networking platform that connects sensors, vehicles, and command systems on land and at sea. The consortium also includes boat builder Marine Alutech, which has signed a contract, while Nokia and Saab have so far only issued letters of intent. Final delivery agreements are expected by the end of 2026, with the first evaluation phase slated for 2027 and 2028. Series production orders, if any, would follow even later.
Should investors sell immediately? Or is it worth buying Nokia?
Despite the short-term noise, Nokia’s longer-term picture remains robust. The stock has still gained roughly 104% year-to-date, and the 200-day moving average at €7.34 sits far below the current level, confirming that the uptrend is intact. The relative strength index (RSI) has cooled to 43, indicating waning momentum but no oversold condition.
Operationally, the company delivered a solid first quarter, with revenue rising to nearly €4.5 billion and operating profit climbing to €281 million. The network infrastructure segment, a key driver of the AI narrative, posted strong growth as hyperscalers ramp up spending on optical networks to feed data-hungry AI data centers. Management has guided for double-digit percentage revenue growth in this segment through 2026.
The next major catalyst comes in July, when Nokia reports second-quarter results. The company has forecast sequential revenue growth of 5% to 9% for that period. Investors will be watching closely to see whether the AI-driven optimism can translate into sustained earnings momentum, or whether the recent volatility signals a deeper correction. Until then, the stock is likely to remain choppy, with support at the 200-day moving average serving as a key line in the sand for long-term bulls.
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