Can the “Ozo” Put a Bottom Under NOK Stock?
Once a pioneer in the mobile phone industry, Nokia Corporation (NYSE:NOK) has long lost all its charm to the smartphones of today. After having sold its mobile business to Microsoft Corporation (NASDAQ:MSFT), the company has been slowly staggering forward, one step at a time. NOK stock’s lackluster performance may have loyal investors worried, but their woes might soon be over. Two recent moves are likely to become the catalysts in finally turning the company around.
The Ozo Is Finally Here!
Nokia has finally released its first 360-degree virtual reality (VR) camera, dubbed “Ozo.” The market had its hopes high when the company first announced that a VR camera was in the making. Inarguably, Nokia has lived up to the market’s expectations. The Ozo is an absolute beauty!
Nokia is not the first to enter the VR arena, however. Earlier this year, wearable camera maker GoPro, Inc. (NYSE:GPRO) launched its first 360-degree camera called “Odyssey.” Likewise, giants Alphabet Inc and Facebook, Inc. are already betting big on virtual reality with their soon-to-be-launched VR headgear for immersive video streaming and gaming. Also, both YouTube and Facebook have integrated 360-degree videos in their platforms. Facebook has even opened up its platform for 360-degree video advertisements, onboarding companies like Samsung, AT&T, and The Walt Disney Company.
Nokia has made the right move at the right time. Undoubtedly, virtual reality is the future of technology, with all major technology companies now betting on it. But what will set Nokia apart from others? One, it’s an early bird in this nascent industry and two, it has introduced the best product yet. Both of these reasons will likely allow it to achieve industry dominance early on.
All of Ozo’s features are mind-blowing. The spherical camera records both audio and video in high-definition, 360-degree formats. The camera has wireless functionality and can broadcast live feeds, running on a powerful battery. This feature creates utility for TV news broadcasters. Ozo also allows its user real-time monitoring on all of its cameras simultaneously in a seamless fashion, which increases its utility in surveillance and security. Plus, the camera is equipped with a powerful local memory cartridge that saves 45-minute-long, high-definition, audio-video data in one place, making it a hip product for both amateur film enthusiasts and professional filmmakers.
In addition to the virtual reality venture, Nokia is also diversifying its business beyond its core operations in telecom. Nokia stockholders gave the green signal to the company on Wednesday to go ahead with the acquisition of Alcatel-Lucent (NYSE:ALU). The acquisition will allow Nokia to move beyond telecommunications and into networking and cloud-based enterprise services. The two companies will jointly end up making more than $26.0 billion in revenue. The acquisition will bring Nokia up next to Ericsson (NASDAQ:ERIC), which has long enjoyed leadership in this space.
I wholeheartedly welcome CEO Rajeev Suri’s strategic move to take Nokia from the beaten-down telecom category to the fast-growing and very lucrative networking industry.
The Bottom Line on NOK Stock
Nokia’s recent moves into virtual reality, networking, and cloud enterprise services will likely become tailwinds for NOK stock in the coming days, helping the company pull itself together and get back on its feet to reclaim its lost glory.
The bottom line: Nokia will likely make a solid comeback in 2016.