Nokia has seen soaring share prices this week following Google’s $12.5 billion dollar acquisition announcement of mobile hardware maker Motorola Mobility.The shares increased by 17 percent on Monday on the US stock exchange, and nearly 15 percent on European stock exchanges.
Analysts point to multiple explanations for the resounding rise in price. The Daily Finance publication from AOL Money & Finance pointed at investor enthusiasm in Nokia stemming from an increased likelihood that Microsoft would make a big for Nokia after Google’s big buy.
Finnish publication YLE has its own theory: “Many have considered the share price under four euros unaccountably low. Now that Motorola has been bought for nine billion [euros], many took notice of how Nokia, which has ten times the market share, is so cheap,” said finance journalist Aapo Parviainen from YLE.
The Motorola Mobility acquisition has given Google a footing in the mobile handset hardware market while giving the company access to various wireless patents, though Nokia has a greater footing in mobile handsets than Motorola.