Nokia shares recover after “catastrophic” 15 per cent crash

Nokia's stock has recovered after a massive drop on Wednesday which saw the company lose nearly 15 per cent of its market value.

This happened shortly after it launched two Windows Phone 8 smartphones, the Lumia 920 – its new flagship device – and the Lumia 820. Interestingly enough, Microsoft share price was flat yesterday and has climbed significantly since this morning.

The stock crash may be blamed on the lack of any killer feature on the Lumia 920 although one could argue the augmented reality app, City Lens, PureView and wireless charging are pretty compelling.

The tumble may also be interpreted as a general lack of conviction from the market that Windows Phone 8 will prove to be a significant threat to both Android and iOS. The fact that Microsoft still hasn’t announced when Windows Phone 8 will be officially released only serves to muddle up the situation.

The Finnish company is currently valued at $9.2bn (around £6bn) and could attract the interest of potential bidders with big pockets lured by the relatively low value of its shares and the company’s formidable presence in emerging markets.

Both Microsoft and Nokia will hold their Q3 earnings releases on 18 October and it will be interesting to see whether they do mention Windows Phone 8 in their notes.