NEW YORK (TheStreet) -- Here's the operative thought: Nokia's (NOK) business is becoming unstitched faster than anyone imagined. The Finnish phone maker, which is getting trounced by Apple (AAPL) and Google (GOOG), announced plans yesterday for 10,000 firings, about a fifth of their employee base, as well as management changes.
They also cut earnings estimates. Again. You got that? Again. As in: for the second time in nine weeks. That's a rarity -- and an essential indicator.
But to most of the media, it's just another cut. Same old, same old. Forbes mentions the second quarter cut in both their headline and second sentence, but never mentions the fact that this is a double-dip cut. The Associated Press touched its toe in the past, mentioning the horror show that was Nokia's April earnings, but also failed to mention the estimate cut. Marketwatch was also mum.
Fittingly, Reuters got there right from the start:"In a second profit warning in nine weeks, Nokia said on Thursday that its phone business would post a deeper-than-expected loss in the second quarter due to tougher competition." This is a defining fact that can mean several things, none good. Industry forces might mean Nokia's business is simply unspooling faster than anyone thought. Management might also be clueless, with no sense of where they stand. Or they might be engaged in the last act of a desperate company: telling the truth slowly. In other words, they're delivering terrible news in stages, so it doesn't seem so bad. Any way you slice a second estimate cut in nine weeks, it's not good. That's why you have to mention it prominently.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV