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Samsung’s share price falls to a nine month low

Continuing from the pessimistic outlook for Galaxy S4 sales rumored earlier this month, Samsung's share price has continued to fall, reaching its lowest valuation in the past nine months.
June 26, 2013
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Samsung stock holders have been having a hard time lately. Earlier in the month, the company lost over $12 billion off its market valuation after investors downgraded the company’s sales prospects for the new Galaxy S4 once it was discovered that Samsung had reduced its part orders for the flagship handset.

Unfortunately for anyone still holding the stock, Samsung’s share price fell more than 3 percent during trading on the Korean stock exchange earlier in the day, before rebounding slightly resulting in a 2.8% decline come the close of the trading session.

Samsung stock price June 26
A view of the continuous decline in Samsung’s share price this month, beginning June 7th. Source: Google Finance

This marks a new nine month low for the company’s stock, amid rumors that Samsung will be reporting lower than expected earnings between April and June. Today’s close also brings the total decline to a rather worrying 17% since the initial market gap down on June 7th, which is the biggest week on week sell-off in Samsung’s stock in more than a year.

Perhaps even more worryingly for Samsung, announcements of new handsets have done little to alleviate the troubled stock. New versions of the Galaxy S4, like the Active and the Mini variations, do not appear to have boosted investor confidence in Samsung’s future sales, and more innovative products like the ATIV Q convertible tablet/laptop don’t seem to have made an impact either.

It seems like a lot of the bearish sentiment on Samsung’s stock is being led by concerns about Samsung’s up coming sales figures, which many are expecting to fall below their estimates. If the company can surprise investors, or the results turn out not to be as bad as many have now anticipated, then there’s a chance that the stock could rebound. But if not then it will be interesting to see what happens to the value of Samsung’s stock, as we know from past experience that big tech companies are particularly vulnerable to prolonged stock sell-offs.