Samsung Value Drops $15 Billion After Earnings Get Out
As it usually happens, after publishing negative results related to profit and revenue a company’s stock value tends to drop. That also happened to Samsung, that took a $15 billion dive since posting its smallest profit in two years.
The stock dropped 7.4 percent and Samsung lost more than the equivalent of the entire LG company, which is simply huge. I’ll remind you that Samsung’s profit dropped 18%, because of stagnating phone shipments. Even Samsung officials acknowledged the problem and blamed it all on Chinese device makers, as well as Apple. And Apple hasn’t even launched a phone this year, so Q3 is not looking pretty.
Samsung has about $58 billion in cash and it was the only company of the top 5 handset makers to post lower shipments in the June quarter. Its market share dipped 7.4%, but frankly speaking there’s no company ready to overtake them, at least on the Android market. Analyst Nicolas Gaudois doesn’t see an improvement over the rest of 2014 or 2015 and he cut the share price forecast 3.3% for the following time frame.
Now Samsung is expected to aggressively price products for the following quarters.