Samsung Shares Fall

Published on: 27 Nov, 2017

On Monday, Samsung announced shares dropping more than 4% which marked a one-month low after Morgan Stanley cut their recommendation on the tech giant due to concerns over increasing sales in memory chips that is likely to rise soon. The company reported third quarter profit of $12.91 billion that was mostly driven by increased prices of their memory chip due to demand for more power in smartphones and servers. However, Morgan Stanley chopped their price target on the stock by 3.4% to 2.8 million won believing that earnings will not grow by next year.

Following this outlook, Samsung shares fell 4.2% at 2.66 million won. Still, the chip maker is less likely to be affected by the trends in chip prices than rivals such as the world’s second largest memory chip maker, SK Hynix Inc. Samsung is a strong candidate for their NAND chips and expects a solid supply demand position next year.

“The reaction is a bit over-sensitive, as all this was known,” said Greg Roh, analyst at HMC Investment & Securities according to Reuters.

“We all knew that NAND prices are going down, which is actually needed to encourage sound demand and increase shipments. And Samsung is strong in NAND chips for data center SSDs (solid state drives) which will be less affected,” Roh said.

Ratings

Ratings
  • 594Views
  • 0Comments

Recommend to Friends

  • facebook
  • Twitter
  • google plus
  • pinterest
  • Digg
  • stumbleupon
  • Reddit
  • linkedin

Ariana Cheong

Email: ariana@financialinsiders.com

@Newsletter

Sign Up for Weekly Updates

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!

Related Posts

12 Jun, 2017 748
30 Jun, 2017 755
20 Jul, 2017 626
01 Aug, 2017 1748

Comments

There is no comment on this article