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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (19232)	3/30/2002 4:48:21 PM
From: david james	Respond to of 34857

Something to watch on Monday..... For those that don't know, Digital River runs Nokia's software store and splits the proceeds with Nokia. softwaremarket.nokia.com AND they are opening an Asia software store shortly. nokia-asia.com Digital River just became profitable this last quarter and will remain profitable this year. However they just warned that they will earn more like 22 cents rather than their earlier forcast of 38 cents, so the stock is going to tumble on Monday. However, these earnings estimates do not include the earnings from the prospective Nokia software stores, or the additional earnings from Beyond.com once the deal closes. The Nokia / Digital River has yet to be announced by Digital River. How big will the Nokia Softwaremarket be? So far the store is for only the 9210/9210i/9290. However, this will expand later in the year to other Java devices (as mentioned in the above asia news item). Nokia has promised 50 million Java phones by the end of the year. Lets assume they sell just 40 million. If each of these java phones makes just one download from the store at a price of $10 (most all applications are more than this), than generates $400 million. Nokia and Digital River get 35% of this or $140 million. That's about $70 million each - with high margins. That might not be much for Nokia, but that would double Digital River's net revenues (Digital River reports net rather than gross revenues). In any case, watch for some wild swings in Digital River stock (DRIV) on Monday. And yes, I unfortunately still have some of my stock with I bought much lower. Dave