Nokia Strikes Patent Deal with Amazon to Enhance Streaming Technology
Nokia Corporation (NOK) has recently finalized a patent license agreement with Amazon (AMZN), bolstering their presence in the digital streaming market. As a leader in e-commerce, Amazon is also focusing on advancing its streaming services by integrating Nokia’s innovative video technologies. While the financial specifics of this agreement remain undisclosed, analysts anticipate a positive impact on Nokia’s revenue.
Nokia is renowned for its expertise in video and multimedia technology, supported by over 150 million euros in research and development across the past 25 years. Its extensive portfolio includes advanced solutions for video compression, content delivery, and content recommendation, among other cutting-edge multimedia technologies.
In 2023, Nokia filed a lawsuit against Amazon for the unauthorized use of its video technology. This legal action spanned multiple jurisdictions, including India, the United States, Germany, and the European Unified Patent Court. However, the newly signed licensing agreement resolves these disputes and grants Amazon access to Nokia’s multimedia solutions, which should significantly enhance its Prime Video content and streaming services.
Could NOK’s Licensing Growth Propel Its Stock Price?
Nokia has begun 2025 on a strong note, initiating multi-year patent license agreements with industry players such as Samsung, which will implement Nokia’s video technologies in its TVs. In 2024, HP Inc. also signed a similar license agreement. The recent partnership with Amazon highlights Nokia’s growing influence and traction within the multimedia sector.
The digital streaming market is poised for considerable growth, with a report from Business Research Insight projecting an 18.66% compound annual growth rate (CAGR) from 2024 to 2033. Given Nokia’s advanced multimedia innovations, the company is expected to play a vital role in ongoing multimedia research and industry standardization.
NOK’s Stock Performance Overview
Over the past year, Nokia’s stock has surged by 50.6%, outpacing the industry growth of 43.5%.
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Nokia’s Zacks Ranking and Competitive Picks
Currently, Nokia holds a Zacks Rank #3 (Hold). Other companies in the industry with better rankings include:
InterDigital (IDCC) maintains a Zacks Rank #1 (Strong Buy) and has delivered an impressive 158.41% earnings surprise in its last four quarters. The company is a leader in mobile technologies facilitating wireless communications.
Celestica Inc. (CLS) also boasts a Zacks Rank #1, providing competitive manufacturing technology and services to leading original equipment manufacturers around the globe.
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Amazon.com, Inc. (AMZN): Free Stock Analysis report.
Nokia Corporation (NOK): Free Stock Analysis report.
Celestica, Inc. (CLS): Free Stock Analysis report.
InterDigital, Inc. (IDCC): Free Stock Analysis report.
This article originally published on Zacks Investment Research (zacks.com).
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