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Ericsson Stock Climbs: What’s Driving the Surge?

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Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
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Ericsson’s stocks have been trading up by 3.76% after reporting promising 5G deals and expanding global partnerships boost investor confidence.

Recent Strategic Moves Elevate Ericsson

  • Entering a partnership with GCI Communication to deploy and operate an advanced 5G Core network, Ericsson is set to revolutionize Alaska’s telecommunication landscape by incorporating AI tools and cloud-native transformations. This marks a significant leap in network infrastructure.

Candlestick Chart

Live Update At 16:03:18 EST: On Thursday, April 17, 2025 Ericsson stock [NASDAQ: ERIC] is trending up by 3.76%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • In a remarkable financial turnaround, Ericsson reported a substantial Q1 earnings increase. From last year’s SEK 0.77 to SEK 1.24, revenues shot up from SEK 53.33B to SEK 55.03B. The company enhanced its gross margin and EBITA performance, extending their technological prowess through a strategic partnership with Telstra.

  • The legal spat between Ericsson and Lenovo ended amicably with a global patent cross-license deal, paving the way for possible financial benefits starting from Q2 2025. Remaining disputes will resolve through arbitration, showing a path forward.

  • The unexpected upgrade by Kepler Cheuvreux analyst Sebastian Sztabowicz from Reduce to Hold showcases rising investor confidence in Ericsson.

Overview of Ericsson’s Earnings Success

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Ericsson has painted a brighter financial canvas this quarter. A 3% year-on-year sales improvement and a whopping 61% surge in net income underscore the potency of their core Networks business. The company’s remarkable gross margin expansion complements its dynamic innovation strategy. Yet, there’s a fair warning; Q2 may hold challenges due to macroeconomic risks and new tariffs that could thin their profit margins.

The stock price dance is as fascinating as it is unpredictable. Between Apr 14 and Apr 17, 2025, Ericsson’s stock experienced an uptick from 7.45 to 8.17. The story wasn’t a straight climb, with ebbs and flows in the price chart that add depth to their stock’s narrative for any keen observer. Intraday data reveals a tale of volatile peaks and valleys, with fluctuations within the 8.0 to 8.2 range—painting a realistic market flutter around investor decisions and confidence levels.

Ericsson’s Financial Dance: Key Metrics

Ericsson continues to demonstrate resilience and vision through its financial statements and key ratios. With an underlying enterprise value of nearly $19.9B and a price-to-sales ratio standing at 0.99, the numbers hint at value despite potential headwinds. Total assets claimed a towering $292.37B, while the foundation of goodwill and intangible assets underscore a historical attention to building strategic partnerships and fostering innovation.

A profitability pretax margin pegs at 10.2%, while management effectiveness is highlighted by a return on assets at 4% and return on equity nearing 12%. Notable is Ericsson’s ability to maintain a leverageratio of 3.1, a testament to its financial agility amidst the market’s demands.

Future Markets: What Lies Ahead?

With substantial improvements in earnings per share, a swift climb in net sales, and promising new partnerships in 5G core networks, Ericsson remains a compelling player in the tech space. The macroeconomic landscape, however, is an unpredictable adversary.

Strategically, Ericsson’s ability to resolve patent litigations such as the one with Lenovo and form dynamic partnerships continues to shape its future viability. With market moves found in innovative 5G systems and the assurance of resolving legal uncertainties, the groundwork appears solid for future growth.

With an eye on both innovation and litigation, there’s a palpable momentum surrounding Ericsson, revealed in its recent stock price behavior. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.” The concluding thought for traders might just be whether Ericsson’s ride is a sustainable venture or a fleeting opportunity—each passing day’s trading might inch them closer to clarity.

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The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”