Motorola Makes Excuses
When Motorola issued downside guidance for the first quarter last Wednesday, the stock dropped 19% and took rival Nokia with it.
Motorola had just reported a terrible Q1, blaming the economy for its problems, Cramer said. But he pointed out that the very next day Nokia announced record fourth-quarter profits and growth. Turns out the Finish cell-phone giant was taking market share, and that’s what was hurting Motorola. Not to mention poor execution, products that won’t leave the shelves and no technological vision for the future, Cramer said.
So don’t believe Motorola’s excuses. Nokia grew earnings 44%, increased the average selling price of its products and said it expects to continue taking market share in 2008 – and it already holds 40%.
“It’s the reason I’d be a buyer when it comes to Nokia,” Cramer said.
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