/// Nokia’s Bad News Not Completely Horrible — Shares Soar
Posting second-quarter earnings this morning , Nokia reported a loss of $1.74 billion and smartphone sales that fell 39 percent to 10.2 million. Gruesome financials, to be sure. But remarkably Nokia’s stock has rallied on them. Shares of Nokia rose as much 15 percent following the company’s earnings report and closed up 12 percent at 1.54 euros. They haven’t seen a spike like that in more than four years. Why the sudden return of investor interest? Four reasons: Nokia is working aggressively to cut costs and cash conservation appears good. Sales of Nokia smartphones rose 45 percent in North America to 128 million. That’s the first such increase in longer than anyone would care to remember. Nokia sold four million Lumias during the quarter, and that’s about a million more than some analysts had expected. Discussing the company’s performance duing today’s earnings call, CEO Stephen Elop hinted that Nokia may be the first handset maker to release a device running Microsoft’s forthcoming Windows Phone 8 mobile operating system. “Note that on the number of occasions when Windows Phone 8 has been demonstrated, it has been on a Nokia device,” Elop replied while dodging a question on this topic. “We have a close relationship that is unlike what anyone else has with Microsoft.” So while the quarter was certainly a difficult one for Nokia, it did have a few bright spots on which investors can pin hopes of a continued turnaround.