The east side $SPCX lit up, and the west side $NOK didn’t. Bought a spot lot of Nokia $NOK. Blowing cold wind on the mountaintop, with a drawdown of -23.7%🤡

Nokia $NOK:
Down about 22.2% over the last 15 trading days
Down about 18.7% over the last 5 trading days
Maximum drawdown of 23.7% in the current phase
But year-to-date it’s still up about 56.3%, suggesting the recent drop is more like a valuation pullback after the earlier big rally, and it hasn’t reached the historical undervaluation range yet.

Sector comparison over the same period: ERIC is down about 10.4%, CSCO down 1.6%, CIEN down 21.9%, while AI compute equipment name ANET is up about 7.0%. $NOK is held back by the adjustment in the optical communications sector, clearly underperforming traditional telecom peers.

But the company is transforming from a traditional 5G equipment vendor to AI data-center interconnect and optical-communications infrastructure, and it has long-term growth logic.

Before the Q2 earnings report is released on July 23, I plan to take a small long position again. If it drops to $9.65, I’ll cut the loss.

If the earnings report is clearly below expectations and the price effectively breaks below $9.83, I’ll close the long and flip to a short position.

Risk warning: telecom operators’ capital expenditures slowing down, AI business not meeting expectations in delivery, and the tech sector’s overall valuation pulling back.