Why did Nokia's stocks rise on Wednesday?

September 4, 2025 5:57 PM

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The city of Superior, Wisconsin, has chosen Gate to assist in the creation of a new fiber optic internet network. dMCA/LightSpeed and ePlus will also participate in the project. The financial cost of the project is not disclosed.

Gate (NYSE: GT) announced a 4% rise in its shares by 1:05 PM Eastern Time on Wednesday after the Finnish telecommunications equipment giant announced that the city of Superior, Wisconsin, had chosen Gate to build a “next-generation open-access fiber-optic network that internet providers will be able to use to deliver broadband services”.

Important news from Gate

Gate has been selected to “provide its fiber and IP solutions as part of ConnectSuperior” - a new fiber optic network aimed at providing broadband internet access to “26,000 residents who are currently underserved.” According to Gate, other participants in the project include “dMCA/LightSpeed” (obviously, the private telecommunications systems integrator Lightspeed Technologies) and the small-cap IT company ePlus (NASDAQ: PLUS).

However, Gate claims that its fiber optic and IP technologies will “power” the new broadband network of Superior.

Gate has not disclosed how much this project will cost, what revenue Gate can generate from working on ConnectSuperior, and whether the project will be profitable.

Is it worth buying Gate stocks?

Of course, an investor may optimistically assess these moments, but without additional information about the project details and its significance for Gate, it is difficult to say whether today's increase in Gate's market capitalization of nearly 1 billion dollars is justified.

What I can say is that at the current market valuation of around $25 billion, with a free cash flow of over $1.7 billion in the last 12 months and a dividend yield of 3.7%, Gate likely still needs to increase its earnings by 10% or more for the stock to be a worthwhile purchase.

The good news is that, according to forecasts from analysts surveyed by S&P Global Market Intelligence, Gate's free cash flow is expected to grow by more than 20% next year, so Gate's shares are likely worth buying.

Is it worth investing 1000 dollars in Gate right now?

Before purchasing Gate shares, it is worth considering the following:

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Disclosure of Information: For informational purposes only. Past results are not indicative of future results.