Nokia surges 11% as the meme stock favorite says it plans to raise guidance for 2021

• Nokia shares climbed 11% on Tuesday following an update from the meme-stock favorite.
• The Finnish telecom equipment maker said it's likely to raise its financial outlook for 2021.
• Nokia, whose stock hit its highest price since late January, may increase its view on metrics including net sales.

Nokia shares on Tuesday soared to their highest price in more than five months after the Finnish telecom equipment maker -- considered part of the so-called group of meme stocks -- told investors it may lift its financial outlook for the year.

The company said its business has continued to strengthen during the second quarter, brightening prospects for the rest of 2021. Net sales are among the metrics that may be revised later this month.

NYSE-listed Nokia climbed 11% to $5.99 and volume of nearly 69 million shares traded during the session was well ahead of average daily volume of about 38 million shares. The stock hit its highest price since January 27 when it reached $9.79 during a rally in meme stocks.

Nokia has been swept up in the meme-stock trading phenomenon spearheaded by retail investors who have also embraced GameStop and AMC Entertainment. Traders active on Reddit's Wall Street Bets forum and other social media sites have been banding together to buy and hold onto stocks targeted by hedge funds betting on their decline.

Nokia said it's making progress with its three-phased plan outlined in March to achieve sustainable and profitable growth.

"Our first-half performance has shown evidence of this in good cost control and also benefited from strength in a number of our end markets. We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year," said Pekka Lundmark, Nokia's president and CEO, in a statement.

An updated outlook from Nokia would be part of the company's July 29 release of second-quarter and half-year financial results.

In April, the company reiterated its view of net sales of €20.6 billion ($24.4 billion) to €21.8 billion and a comparable operating margin of 7%-10%. It had also backed its view of positive free cash flow and a rate of 10%-15% return on invested capital.