Samsung shares soar to an all-time high; company is now valued at $224 billion USD


Back in August, a little more than two weeks after the introduction of the Samsung Galaxy Note 7, the company's stock price soared to an all-time high at the equivalent of $1480 USD a share. But once it became apparent that the phablet had some serious issues, sellers took over and knocked more than $14 billion off the company's stock market valuation.

Despite the loss of as much as $5 billion in potential Galaxy Note 7 sales, the shares have rebounded including a gain of $9 billion in Samsung's valuation this morning. That puts Sammy's shares at a new all-time high once again. Part of the reason is the announcement that the company will return 50% of its free cash flow in 2016 and 2017 through the use of increased dividends and share buybacks. 2016 dividends are going to increase 36%. Samsung is taking these steps after U.S. hedge fund Elliott Management put pressure on the company to take steps to increase stockholder value. The fund owns .6% of Samsung and had hoped to get the manufacturer to pay out 75% of free cash flow.

There is also an attempt by institutional stockholders to change Samsung's structure into a holding company with an operating unit. This could potentially consolidate the power of the founding Lee family, especially if they exchange some of their current shares into holding company stock.

Samsung's shares closed Wednesday at the equivalent of $1,496.74 USD, up 4.2% on the day. The company now has a valuation of $224 billion. 

PhoneArena is on Instagram. Follow us to stay updated with fresh news and flashy media from the world of mobile!


source: Reuters

FEATURED VIDEO

39 Comments

1. tedkord

Posts: 17408; Member since: Jun 17, 2009

If you missed out on this wave, then quick buy shares in Preparation H. They're sure to soar now.

2. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

"Samsung is dead because of the Note 7"

3. sissy246

Posts: 7124; Member since: Mar 04, 2015

LMAO Yeah that's why Samsung shares are now $1480 usd

4. maherk

Posts: 6933; Member since: Feb 10, 2012

In case you missed it, he was being sarcastic, because that's what Samsung haters on this site were saying ever since the Note 7 was recalled.

7. sissy246

Posts: 7124; Member since: Mar 04, 2015

Guess I did.

35. sgtdisturbed47

Posts: 969; Member since: Feb 02, 2012

Only idiots would claim that the exploding Note7 caused Samsung to die. Samsung won't die because of a phone, since they have their fingers in a lot of different pies. It did hurt their image, though.

37. Skimshaddy

Posts: 126; Member since: Feb 23, 2016

*$1,496.74 USD

11. sissy246

Posts: 7124; Member since: Mar 04, 2015

Sorry about that NTF.

5. maherk

Posts: 6933; Member since: Feb 10, 2012

Funny how all the trolls that flood Samsung articles are now hiding. If this was an article about Samsung shares plummeting to all time low, they would have been all over this article celebrating it like there is no tomorrow.

38. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Of course. It's articles like this on both sides that tell you who the trolls are. I still think some of the trolls are actually PA writers acting like readers and posters and starting flame wars for more clicks and more posts.

6. cdm283813

Posts: 424; Member since: Jan 10, 2015

LOL to all the haters! That being said I know that the next Note (or whatever they call it) will be an extreme beast and will break all types of sales records. I may have to switch from iPhone next year.

8. sissy246

Posts: 7124; Member since: Mar 04, 2015

I can't wait for the note 8. Even the S8 and S8 edge are going to be great. 8

9. sissy246

Posts: 7124; Member since: Mar 04, 2015

Samsung shares- $1480usd Apple shares-$1111usd Hmmmm

12. kiko007

Posts: 7500; Member since: Feb 17, 2016

None of you read the source article, did you? Otherwise you'd know EXACTLY why that is......alongside why their shares skyrocketed so quickly.

21. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Samsung current valuation-$224 billion Apple current valuation-$615 billion. Hmmmm

22. sissy246

Posts: 7124; Member since: Mar 04, 2015

That's 605 lol

23. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Does it really hurt you so much that Apple has such a higher value than the entire Samsung conglomerate?

27. sissy246

Posts: 7124; Member since: Mar 04, 2015

Nope, I was just stating the facts. Does it really hurt that it's $605 and not $615

29. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Nope because it's still a lot more than Samsungs valuation!

32. sissy246

Posts: 7124; Member since: Mar 04, 2015

And so what

34. willard12 unregistered

This is just Samsung Electronics, not Samsung Group. You may want to read the source article.

39. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

You keep saying that, but no matter how much you do, it will never make it fact. The only one who cares about Apple's money are you idiots. There products don't reflect all that money though. Take the Mac. The new Macbook now starts at 1999...for what? I am personally eye the leats Dell XPS and HP Envy which are both about $1500 and have 4K displays out the box, more storage, faster RAM, and more. So I certainly wont be lookign at a Mac. Then the phones. Compare the Galaxy S7 to the iPhone 7. Same price. Yet the Galaxy has MORe storage, more features, takes better pictures, records betetr audio and video, has a better design and so much more...including better battery-life even with a QHD display. The iPad is garbage period. 12" of usless BS and iddnt even come with a pen. And if 3D Touch is so great, why didnt they put it in the Pro models, yet jacked it up $100 How is it the iPhone 7 has less holes, after removing the real home button and the headphoen jack, and yet is only IP67 certified, when the Galaxy has all its holes and even a pen silo and it was IP68 rated? Again, you nitwits are always arguing money. What has Apple done with their money that you can actually brag about? There girly color ui limited UI? Poor design choices? Every usability? Crashes more app than Android? Has a reliability issue with one model having a 25% failure rate? No matter how bad the Note 7 issue was, 25% of them did't fail.In fact one 0.00000001% actually had an issue. If Apple sold 150M iPhone 6 models including the 6S, 25% of them are all garbage and had to be replaced. So Samsung lose of 2.5M phones is small, other tahn the 20M+ they were going to sell, but wont even have to waste money making. Do the math. If Apple sold 150M iPhone 6 models and 25% of them failed, how much money do they lose replacing them all? Since most was the 6 Plus, that means 25% of 150M, at $280 each is a lot of money. That means they lost more than Samsung actually did on the Note 7. So what exactly are you bragging about? Is Apple cutting you a paycheck? Is Tim Cook your wife or husband? Do you even work for Apple? Because if none of that applies to you, then WTF are you riding Tim Cooks jock so hard? Please enlighten us brush!

10. John-Knotts

Posts: 380; Member since: Feb 28, 2015

Yeah, no was Android Central will post this news. They're on a all negative Samsung news slant to try and promote Pixels.

14. trojan_horse

Posts: 5868; Member since: May 06, 2016

Yay, I've noticed that too. Even Android Authority and other Android blogs are hotly promoting the Pixel phones lately... But it'll take quite a long time, probably years, before the Pixel brand establishes itself as a reputable and valorable brand. Heck, I'm impressed to see Samsung's shares hit a new all-time high, despite just having gone through s**t recently, due to the Note7 chaos.

13. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Where are all of the Samsung haters now?

15. bubbadoes

Posts: 1225; Member since: May 03, 2012

considering that Samsung is all over the place (refrigerators, speakers, soundbars, washers, dryers, cell phones, watches, etc. etc.) the value is small in numbers. Apple's worth is still the world's most valuable at 605 billion and sticking to tech stuff ONLY. So as always, shamesung will always being playing catch up. nothing to hate...just facts!

18. razmahtaz001

Posts: 501; Member since: May 11, 2013

you forgot to add iphones/ipads to ur list LOL samsung parts in iphones/ipads too apple may be the richest company in the workd, but samsung is much more valuable when it comes to providing multiple goods and services to the entire world, which includes apple LOL

20. ctdog4748

Posts: 797; Member since: Mar 05, 2016

"apple may be the richest company in the workd, but samsung is much more valuable when it comes to providing multiple goods and services to the entire world, which includes apple LOL" So by your logic, for example, I'm much more valuable than Bill Gates because he provides me with Microsoft office? Seriously, what is the point of what you wrote?

16. CreeDiddy

Posts: 2240; Member since: Nov 04, 2011

So you are saying that Apple has 3 times the amount of Samsung, even with all of Samsung's divisions...

17. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

It's all thanks to Apple.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.