Will NOK's Non-Core Submarine Business Divestment Aid the Stock?

Core Business Focus - Nokia Corporation has completed the divestiture of its submarine networks business, Alcatel Submarine Networks, to the French State, aligning with its strategy to enhance financial position by focusing on core businesses [1][3] - The divestiture is expected to strengthen Nokia's Network Infrastructure business, which consists of Fixed Networks, IP Networks, and Optical Networks [3] Market Position and Growth - Alcatel Submarine Networks is a leader in the industry with over 800,000 km of optical submarine systems globally and is well-positioned to benefit from the expanding subsea cables market [2] - The French State plans to continue investing in ASN, supporting sustainable development and allowing ASN to broaden its technology offerings [2] Financial Performance - The divestiture is anticipated to bolster Nokia's diverse portfolio of solutions and enhance overall financial performance [7] - Nokia's shares have gained 26.5% over the past year, slightly underperforming the industry's growth of 27.1% [8] Technological Advancements - Nokia is transforming communication through advancements in 5G technology, ultra-broadband access, and Internet of Things applications [4] - The company is experiencing healthy momentum in software and enterprise sectors, which is beneficial for its licensing business [5] Customer Base and Expertise - Nokia has established expertise in mission-critical networks, serving over 2,600 enterprise customers across various sectors including transportation, energy, and public services [6]