Samsung shares are of increasing interest to investors. Let’s take a look at the history and progression of Samsung stock.
The Samsung brand is known the world over for its TVs and cell phones. With artificial intelligence and technology in general drawing an increasing amount of attention, stocks such as Samsung are of interest to many buyers. The price of Samsung has increased continuously, going from $16.90 in 2011 to $73.51 in 2021. Here’s a complete analysis of Samsung stock to guide your investment choices.
When it was founded in 1938, Samsung was initially in the textile business. Following the economic growth of South Korea after World War II, it diversified into the construction sector, shipbuilding and household appliances among others.
The group entered the telecom business in 1980 with the acquisition of Hanguk Jeonja Tongsin. It first produced switchboards, fax systems and then cell phones.
Samsung Electronics, the subsidiary of the group that manufactures electronic devices, invests a significant amount in research and development. In 2013, it became the second most innovative company in the world, after Volkswagen, and the world leader in cell phone sales. In terms of market share, it was the world's number one smartphone and LED TV company in 2020.
The Samsung Group has about 60 subsidiaries and over 400,000 employees. In addition to its main segment, electronic products, it works in the fields of biopharmaceuticals, insurance and hydrocarbons.
In 2020, Samsung recorded $8.20 billion in profit. Its sales amounted to 55.30 billion dollars with an increase of 3% compared to the previous year. Its profit increased by 26% to 5.96 billion euros, a record amount that the group has never recorded. Its market capitalization in 2021 is 549 billion dollars (443 billion in February 2020).
Samsung's stock price is listed on the Nasdaq All Markets in the United States. Between 2011 and 2013, the price rose from $16.90 to $20.23, an increase of 20%. The price between the beginning of 2013 and the beginning of 2016 has fluctuated fairly constantly, with the price ranging from $20.23 to $25.62.
Between February 2016 and November 2017, an increase of over 150% was recorded. The stock then lost 33% of its value between 2017 and 2018; with the price dropping to $17.08. It then recovered with a 53% increase between 2019 and 2020. The stock price is currently at $73.51 (February 2021).
The increase of work-from-home with the arrival of the pandemic in 2020 benefited the stock price of Samsung Electronics. Sales have risen sharply due to increased demand for electronic equipment. The changing global health situation in the coming years may continue to have a significant impact on Samsung's share price.
As one of the major players in the technology field, Samsung continues to research and innovate. The launch of new products, both by Samsung and its competitors, can therefore cause sales volumes to fluctuate, which will have an impact on the share price.
Advantages and disadvantages of Samsung stock
Samsung Group's growth and innovation capabilities are a guarantee and reassurance for investors. Over the years, it has maintained an important position in the technology sector. Its excellent reputation gives confidence to customers and is the reason behind its global brand awareness.
In order to gain a large market share, the group offers a wide range of products, with a large number of models in a wide range of prices. Its diversified clientele guarantees the development of its turnover. However, the group is active in a sector with very strong competition.
Investing in Samsung stock provides access to dividend sharing. The large swings in the share price also allow traders to make profits in the short term.