It appears you have not yet registered with our community. To register please click here...

Go Back [M] > Madshrimps > WebNews
Investors fear Samsung might be over stretching itself Investors fear Samsung might be over stretching itself
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Investors fear Samsung might be over stretching itself
Thread Tools
Old 16th April 2017, 05:53   #1
[M] Reviewer
Stefan Mileschin's Avatar
Join Date: May 2010
Location: Romania
Posts: 126,906
Stefan Mileschin Freshly Registered
Default Investors fear Samsung might be over stretching itself

While Samsung is set to deliver huge profits this year, some investors are already starting to fret the tech giant will soon become a victim of its own success.

The outfit has a market capitalisation of $293 billion and is Asia’s most valuable company. Its shares have jumped 60 percent since end-2015, hitting a record high in late March.

Wall Street analysts are predicting that high chip prices continuing at least through to the end of this year, and the launch of a new flagship smartphone this month reviving its mobile business after last year’s Galaxy Note 7 fires.

But shareholders are less excited than they should be. The Stock is only up three percent since April and some investors are questioning the company’s long-term growth potential and whether it can maintain the double-digit profit growth expected this year.

Samsung’s operating profit is expected to grow just 5.5 percent next year compared to 61 percent in 2017, according to the average forecast from a Thomson Reuters survey of 16 analysts.

This is because most of Samsung’s growth has been the booming memory chip market, with prices for both DRAM and NAND chips soaring. Researcher IHS expects 2017 memory industry revenues to leap 32 percent to a record $104 billion this year.

But this growth will not be repeated, analysts say, with more production capacity coming online to alleviate the bottleneck. IHS projects 2018 memory industry revenue to grow by just 3 percent to $107 billion.
Stefan Mileschin is offline   Reply With Quote

Similar Threads
Thread Thread Starter Forum Replies Last Post
Two more investors sue Theranos and Elizabeth Holmes for fraud Stefan Mileschin WebNews 0 29th November 2016 06:46
AMD investors allowed class action over Llano Stefan Mileschin WebNews 0 29th November 2016 05:43
Volkswagen investors sue for another $9 billion in damages Stefan Mileschin WebNews 0 26th September 2016 06:38
HTC’s brand, factories and buildings are now worthless to investors Stefan Mileschin WebNews 0 12th August 2015 06:22
Google investors tell board not to be so evil Stefan Mileschin WebNews 0 15th May 2014 07:36
OCZ Technology Issues Update for Investors Stefan Mileschin WebNews 0 18th April 2013 07:04
AMD investors spooked by accountant's exit Stefan Mileschin WebNews 0 19th September 2012 06:58
Facebook Investors Know Exactly Whom to Blame Stefan Mileschin WebNews 0 11th September 2012 07:39
AMD wanted to sell Dresden, investors said no jmke WebNews 3 19th July 2007 16:25
Investors see green in clean tech Sidney WebNews 0 21st July 2005 10:03

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off

All times are GMT +1. The time now is 15:18.

Powered by vBulletin® - Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO