Samsung struggles over memory and display business, Q1 profit drops by ~60%
Samsung electronics’ Q1 report revealed an almost 60% decline in profits compared to last year, as the tech giant continued to grapple with its display and memory business. Its operating margin declined from last year’s 15.64 trillion to 6.2 trillion Korean won ($5.5 billion) till March, missing analysts’ estimates of 6.8 trillion won. This is, however, not surprising as the South Korean tech giant had already expressed warning last month.
Lack of demand from data center companies buying memory chips as well as declining smartphone sales have impacted sales of Samsung’s memory chips. But it is already known that the entire semiconductor industry has been struggling over these issues. Analysts’ further express concerns over the persistence of these problems for the next quarter as well, with a slim opportunity that it may improve from the second half of the year.
According to the executive director, the weaker-than-expected operating profit number could be explained by a likely one-off provision in cost for Samsung’s memory business. As far as its display business is concerned, LCD panel prices fell sharply due to competition from the Chinese competitor’s coupled with a decline in the OLED display screens used in high end smartphones like Apple (AAPL) iPhone.
But there still may be some good news for Samsung--its 5G potential. The company has rolled out its new Galaxy S10 5G smartphones in its home market on Friday. This could be meaningful as it also sells chipsets and network equipment required to build out that 5G technology. The company is set to launch the Galaxy S10 5G in the U.S. with Verizon (VZ).
AAPL's Stochastic Oscillator stays in oversold zone for 4 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AAPL advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 349 cases where AAPL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AAPL moved out of overbought territory on December 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 54 similar instances where the indicator moved out of overbought territory. In of the 54 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 31, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AAPL as a result. In of 71 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AAPL turned negative on December 30, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AAPL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AAPL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (35.461) is normal, around the industry mean (90.639). P/E Ratio (26.429) is within average values for comparable stocks, (44.395). Projected Growth (PEG Ratio) (2.092) is also within normal values, averaging (1.915). AAPL has a moderately low Dividend Yield (0.006) as compared to the industry average of (0.025). P/S Ratio (6.925) is also within normal values, averaging (78.275).
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a manufacturer of mobile communication, media devices, personal computers, and portable digital music players
Industry ElectronicsAppliances