Stocks on Sale: Uber, Nokia, and Mobileye
Complete. Here is the key summaryUber, Nokia, and Mobileye stocks are experiencing significant declines. Uber faces potential competition from Waymo in autonomous driving, despite its current entry point appeal. Nokia's stock fell below $10 after revenue growth failed to sustain investor interest in its AI initiatives, impacting peers like Ciena and Corning. Mobileye dropped $2 per share post-Q2 results due to weak Q3 outlooks, though its strong ties with Intel and Volkswagen provide some future support.
The relentless sell-off in Uber Technologies (UBER) created an entry point for patient investors.
UBER stock broke down in mid-July. The odds are great that its foray into the autonomous driving sector will end in disappointment. Waymo, owned by Alphabet (GOOG), might end its ties with Uber, according to the Financial Times.
If Waymo enters the Austin and Atlanta markets on its own, it would compete with Uber. That would cut Uber’s addressable market. Still, Waymo would charge more, so consumers might prefer Uber’s services instead.
Nokia (NOK) topped over $16 in June before its free-fall. The stock traded below $10 after posting a 3.75% Y/Y growth in revenue, to $5.55 billion. Investors lost interest in the AI aspect of the business. At first, the stock jumped on its partnership with NVIDIA (NVDA) to launch an AI-RAN (radio access network) solution. Shares of Ciena (CIEN), Corning (GLW), and Lumentum (LITE) also faced selling pressure.
Mobileye (MBLY) lost around $2.00 a share after posting strong Q2 results. Markets reacted to the Q3 outlook. Still, the company is 77% owned by Intel (INTC), which is a hot chip stock. That would give Mobileye opportunities in the future to collaborate on developments. Volkswagen is a primary customer. That would give MBLY stock some support.