Samsung Share Price Decline: Earnings Shock and Trade Concerns Impact Stock
Samsung Electronics' share price dropped after projecting a 56% drop in Q2 operating profit due to US-China trade tensions and supply delays. Analysts express concerns over the company's performance amid global economic uncertainties.
Samsung Electronics faced a sharp decline in its operating profit by a sharper-than-expected 56% due to inventory write-downs triggered by US export restrictions on AI chips destined for China. The company reported a preliminary operating profit of 4.6 trillion won in the June quarter, the lowest since 2023, falling short of analysts' projections. The revenue remained flat at 74 trillion won.
The company is expected to release a full financial statement later this month with net income and divisional breakdowns. Samsung's performance was impacted by restrictions on tech exports to China, along with a 25% tariff imposed on South Korea by US President Donald Trump, further clouding the stock's outlook.
Capital market expert Anuj Gupta stated that given the recent global trade tensions and slowing economic growth, predicting future performance is challenging. Despite this, an improvement in performance is expected in the second half of the year due to the festival season in India.
Regarding Samsung's share price, traders can consider buying on dips as prices are currently in an oversold zone. The stock price declined over 1% to 61,000 KRW from its last closing price of 61,700 KRW. Analysts suggest that sustained movement above 62,000 KRW per share could propel the stock towards 71,000 KRW apiece.
The views expressed above are those of individual analysts, and investors are advised to consult certified experts before making any investment decisions.