Samsung’s Loses $8 Billion on Profit Growth Concerns
Samsung’s Market Cap Loses $8 Billion on Profit Growth Concerns
Samsung is off to a rocky start this year.
Samsung Electronics’ stock declined by nearly 5% in trading Thursday on the Korea Stock Exchange, shaving off $8.8 billion from the company’s market cap, according to The Wall Street Journal. The drop comes amid growing concerns that Samsung’s profit growth is slowing.
The South Korean company is expected to report an operating profit of more than $9 billion for the fourth quarter, according to a survey of analysts. That’s more than the overall revenues of many tech companies, but it represents a 9.2% increase from the same quarter a year earlier. By comparison, Samsung’s profit in the third quarter was up 26% year-over-year.
Declining profit growth was a top concern for Samsung for much of 2013. Analysts are worried about Samsung’s mounting marketing expenses and slowing demand for high-end smartphones, among other factors.
Image: Flickr, John Karakatsanis