NOK versus CHKP Market Cap
A lot of people are talking about the freefall of Nokia’s stock, lately. A few have even made the comparison that Nokia’s stock is now lower than X, which we never thought would happen. Here’s my own personal version of that:
Why am I making this particular comparison? Three years ago, Nokia sold a part of themselves–the part I spent a decade of my life working for–to Check Point. At the time, the profits our business unit was making was “rounding error” to the larger Nokia, who was still doing reasonably well in 2009 despite the ascension of the iPhone. That said, our business wasn’t core to Nokia, so they tried to sell us to an investment firm in 2008, which ultimately backed out due to the general state of the economy at the time.
Check Point picked up the business unit, which immediately contributed to the bottom line. In the last three years, Check Point stock has more than doubled and revenue continues to increase quarter-over-quarter, year-over-year.
Nokia’s? The stock is down over 85% over the same 3 year period. Profits? None to be seen anytime soon.
I’m very glad I got off shoved off the platform before it started burning.