72.35 -0.38 (-0.52%)
After hours: 4:56PM EDT
|Bid||72.20 x 2200|
|Ask||72.50 x 1100|
|Day's range||70.86 - 74.90|
|52-week range||55.79 - 96.17|
|Beta (5Y monthly)||1.40|
|PE ratio (TTM)||20.64|
|Forward dividend & yield||2.48 (3.80%)|
|Ex-dividend date||03 Mar 2020|
|1y target est||N/A|
(Bloomberg) -- When Samsung Electronics Co. brass addressed analysts during its last earnings call, much of the talk revolved around finally turning the corner after years in the doldrums. That was in January, before Covid-19 threw the global economy into a tailspin.Now, executives are struggling to assess the damage. In the short term, Samsung’s most profitable business is riding a surge in online activity from the millions confined to home, driving demand for the memory chips that help power datacenters and cloud services. But should the pandemic persist into the second half -- a worst-case scenario -- the tech giant foresees missing its own 2020 revenue projections by a double-digit percentage, according to people familiar with internal discussions.Samsung unveils preliminary earnings Tuesday, becoming one of the first major technology corporations to paint a picture of how the pandemic impacted the global tech industry in 2020’s first three months. As the world’s largest maker of memory chips, phones, displays and appliances, the Korean giant is exposed to the economic shocks of Covid-19 like few other tech corporations. The novel coronavirus has already forced Korea’s largest company to shut plants from Gumi at home to India, costing Samsung days of lost production. While it’s expected to post first-quarter revenue growth, the question is whether the initial surge in semiconductor demand can offset a hit from what could be the worst global economic shock in at least a generation.“We are truly in uncharted waters as the tech industry in general has continued to grow, perhaps at varying rates, but we haven’t seen a broad-based, global downturn such as we may be in line for,” said Robert Maire, president of Semiconductor Advisors in New York. Chip demand in particular “will likely not be as robust as it could have been as demand for devices that contain semiconductors, such as smartphones, TVs and consumer electronics, will be reduced through negative economic impact.”Foremost among the divisions under scrutiny is the semiconductor unit, which accounts for more than half of operating profits at Samsung. It’s been pounding out memory chips -- the lubricant of the tech industry -- round the clock, essential in datacenters hosting everything from video conferences to e-commerce. But executives and investors worry that prolonged Covid-19 lockdowns may crimp final demand for smartphones and other electronics -- and ultimately deal a serious blow to the chip industry’s nascent recovery.Read more: Apple Tells Staff U.S. Stores to Remain Closed Until Early MaySamsung’s shares have dived more than 20% since their January 2020 peak, depressed by a series of analysts’ price-target cuts. Much of the hit could come this quarter since Covid-19 escalated globally in March. Revenue growth is likely to fall off steeply, according to Eugene Investment & Securities, which projects a 12.3% decline in the June quarter from a forecast for a mere 0.1% increase in the January to March period.Among the analysts that cut price targets was Hana Financial Investment, which also slashed its projection for Samsung’s 2020 smartphone sales from 300 million units to 260 million. It expects OLED panel shipments to plunge 12% to 373 million this year. Now that the Euro 2020 soccer tournament and Tokyo Olympics have been postponed, TrendForce also lowered its market forecast for TV shipments by 5.8% to 205.2 million units, warning that could slip further as the situation worsens in North America and Asia.“The current financial crisis that accompanies the pandemic has produced a lot of uncertainties and could surpass the Financial Crisis of 2007-2008 in scale,” TrendForce said on March 30. “Hence, the general economic outlook for 2H20 could become even gloomier as the pandemic is not expected to be brought under control in the short term.”Read more: Micron Gives Strong Outlook Lifted By Data-Center DemandThat’s a far cry from just a month ago, when Samsung told shareholders the memory market will stabilize this year thanks to upgrades in manufacturing processes, datacenter expansions and the rollout of fifth-generation or 5G wireless networks. Having learned its lesson from previous industry slumps, Samsung was confident it could maintain a balance between supply and demand for memory chips, the people said, asking not to be identified talking about internal deliberations. Their prime concern was avoiding a repeat of the oversupply that triggered a chip price crash in 2019, they said.The industry is still toting up the impact of the pandemic. In a positive scenario, analysts expect pent-up demand for smartphones and sustained use of online learning and work-from-home gear like laptops to engender a soft-landing for Samsung later this year. Just a week ago, Qualcomm Inc. and Western Digital Corp. said they were seeing a recovery in demand from Chinese consumers for phones and computer disk drives. And Micron Technology Inc. has predicted stronger-than-expected revenue.What Bloomberg Intelligence SaysMemory chips are likely in tight supply due to disruptions in obtaining certain raw materials and equipment on the Covid-19 outbreak. This may bolster DRAM and NAND sentiment following rising contract prices in March, supported by rising remote work access needs, despite an extended smartphone shipment slump to 2Q.\- Anthea Lai and Anand SrinivasanClick here for the research.It may well be that the disease will encourage shifts in consumer activity that benefit the industry in the long run, said C.J. Muse, senior managing director at Everscore ISI in New York.“The world is changing,” said Muse. “There is clearly something that, over the long term in this kind of virus world, should be positive, given how our lives are evolving and how important the cloud is to a lot of what we do now and even more than ever.”Read more: ‘Nightmare’ for Global Tech: Virus Fallout Is Just Beginning(Corrects Trendforce’s forecast in seventh paragraph to refer to industry, not Samsung, shipments)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nokia (NOK) launches a first-of-its-kind AI-backed service offering that enables CSPs to support future network evolution, and optimize enterprise and cloud services on a global scale.
(Bloomberg) -- SoftBank Group Corp. fell as much as 10% after a satellite operator it invested in filed for bankruptcy, ceding some gains from an unprecedented plan to sell assets and buy back shares.OneWeb made the filing late Friday U.S. time after raising about $3.3 billion in debt and equity financing from shareholders including SoftBank, Airbus SE and Qualcomm Inc. since its inception. At least $1 billion of that came from SoftBank, which said it first invested in December 2016 and declined to give a total amount.It is the latest blow to SoftBank founder Masayoshi Son, who last week unveiled a plan to raise $41 billion to buy back shares and slash debt. The announcement sent the shares soaring more than 50% in just a few days. The rally was interrupted when Moody’s Corp. cut its debt rating by two notches, saying the Japanese investment firm’s plan to sell off assets during a market downturn threatened its total value. SoftBank’s shares traded 6.7% lower on Monday morning in Tokyo.Son had often pointed to OneWeb as one of the cornerstones of an investment portfolio that ranges from ride sharing, co-working and robotics to agriculture, cancer detection and autonomous driving. The startup was working on providing affordable high-speed access anywhere in the world and targeting 1 billion subscribers by 2025. Son has painted a picture of a future where satellite networks cover every inch of the Earth and a trillion devices connected to the internet disgorge data into the cloud where it is analyzed by artificial intelligence.OneWeb listed liabilities and assets of more than $1 billion each in its Chapter 11 petition in U.S. Bankruptcy Court in White Plains, New York. The company had been in advanced discussions earlier in the year for a fresh investment, it said in a statement. But the discussions fell apart after the coronavirus pandemic sent markets into a tailspin, it said.The company had been mulling a Chapter 11 filing even as it continued to review possible out-of-court alternatives, people with knowledge of the matter told Bloomberg News on March 19.The satellite operator said it will pursue a sale process during the court reorganization and is in talks for so-called debtor-in-possession financing that would allow the company to fund its obligations during the proceedings.OneWeb makes low-orbit satellites that provide high-speed communications. It faces high-profile competition, including from Elon Musk’s SpaceX Starlink project and Jeff Bezos’s Amazon-linked Project Kuiper effort, while incumbents in the space include Inmarsat, Intelsat SA and Eutelsat Communications SA.At the time of its filing, OneWeb owed $238 million to Arianespace, its satellite launch operator, according to the court document. Arianespace, headquartered near Paris, describes itself on its website as the world’s first commercial space transportation company.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Microsoft Corp.’s agreement to acquire 5G software maker Affirmed Networks Inc. valued the company at about $1.35 billion, according to people familiar with the matter.Microsoft announced the deal on Thursday without disclosing financial details.Microsoft already serves telecom customers and struck an agreement with AT&T Inc. last year with the aim of moving more the carrier’s network to its platform. Microsoft has been building its cloud computing operations through acquisitions. In 2018, it bought privately held GitHub for $7.5 billion.Affirmed Networks also held talks with Samsung Electronics before its deal with Microsoft came together, one of the people said.Pete Wootton, a spokesman for Microsoft, declined to comment on the price. A representative for Affirmed Networks also declined to comment. Samsung didn’t respond to a request for comment.Microsoft shares fell 4.1% Friday to close at $149.70.The introduction of 5G is just starting, with test projects by carriers such as AT&T generally limited to select big cities. Nationwide U.S. coverage may take years. But tech giants and telecom industry incumbents have been angling for a slice of the market for edge computing and going after big corporate customers. The White House has made 5G a linchpin of its tech policy, particularly as it tries to suppress the global expansion of China’s Huawei Technologies Co.The networking industry is transitioning away from expensive fixed purpose machines that take care of specific parts of the job of managing the flow of data to software that resides in remote data centers. The aim is to make the things cheaper and more flexible.Affirmed Networks helps build virtual networks for telecom customers using 5G technology. It was founded in 2010 and had raised about $240 million in funding, according to Pitchbook Data. It raised financing just last month at a $1.35 billion valuation, people familiar with the matter said.Affirmed Networks said on Thursday that it was replacing its chief executive officer with one of its founders, Anand Krishnamurthy.Affirmed Networks, based in Acton, Massachusetts, is backed by investors including Qualcomm Ventures and Centerview Capital Technology Management, the venture arm of investment bank Centerview Partners, as well as by Lightspeed Management, CRV and Bessemer Venture Partners,(Updates with line on Samsung’s interest in fourth paragraph, adds share price in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
With the ongoing erratic movement of most stocks, it's a prudent idea for investors to go for dividend-paying stocks as a regular source of income.
Apple (AAPL) is now expected to stay the iPhone 5G launch due to supply-chain constraints as well as potential tepid demand due to the colossal coronavirus effect on the economy.
Ericsson (ERIC) collaborates with MTN Group to deploy fully integrated network managed services and boost network digitalization efforts in Benin.
In addition to ensuring the safety and wellbeing of its employees, the strategic move will enable BlackBerry (BB) to fulfill corporate social responsibilities amid testing times.
CenturyLink, Inc. (CTL) has taken some active measures for its workforce as the deadly virus attack has dealt a severe economic blow across the globe.
Dividend paying stocks like QUALCOMM Incorporated (NASDAQ:QCOM) tend to be popular with investors, and for good reason...
Ericsson's (ERIC) Radio System provides a powerful mobile broadband with optimized total cost of ownership per gigabyte and efficient 5G introduction.
The merger of T-Mobile (TMUS) and Sprint (S), which remains subject to certain closing conditions, is undeniably going to disrupt the competitive landscape of the U.S. telecom market.
(Bloomberg) -- OneWeb, the satellite operator backed by SoftBank Group Corp., is mulling a possible bankruptcy filing to address a cash crunch as it grapples with high costs and stiff competition, according to people with knowledge of the preparations.The company is considering seeking court protection even as it continues to review possible out-of-court alternatives, said the people, who asked not to be named discussing private company plans.OneWeb would be among the first SoftBank-backed companies to file for bankruptcy. A spokeswoman for SoftBank, which is OneWeb’s largest investor, declined to comment.A spokesperson for OneWeb declined to comment.London-based OneWeb makes so-called low-Earth orbit satellites that provide high-speed communications, and it has raised approximately $3.3 billion in debt and equity financing from shareholders including SoftBank, Airbus SE and Qualcomm Inc. since its inception, according to filings.It faces high-profile competition, including from Elon Musk’s SpaceX Starlink project and Jeff Bezos’s Amazon-linked Project Kuiper effort, while incumbents in the space include Inmarsat, Intelsat SA and Eutelsat Communications SA. And while the technology is in its early stages, the business is subject not only to high startup costs but an uncertain regulatory environment.On that front, SoftBank has ramped up lobbying efforts in Washington, Bloomberg has reported, including in support of measures that would allow OneWeb to provide Internet access from more of its satellites.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
With the latest round of equity financing from Juniper (JNPR) and Cox Communications, StackPath has so far raised about $396 million to accelerate the development of edge computing solutions.
U.S. Cellular (USM) is looking for ways to better serve customers who are making adjustments in their daily lives to minimize in-person interactions.
Ribbon's (RBBN) Session Border Controller 5400 is designed to deliver high performance and scale while protecting large enterprise networks.
The Zacks Analyst Blog Highlights: JPMorgan Chase, Mastercard, Qualcomm, Petrobras and Walgreens Boots Alliance
(Bloomberg Opinion) -- The next great leap in cellular communications will soon be upon us.So says this week's guest on Masters in Business, Cristiano Amon, president of Qualcomm Inc. He oversees all activities related to the company’s semiconductor business and the latest cellular standard, 5G. He joined Qualcomm in 1995 as an engineer, eventually rising through the ranks to senior management.Amon explained why 5G is going to be a big deal for not only mobile phone calls, but data and mobile computing. He believes it is the most significant advance since the move to digital from analog mobile calling.He is also in charge of the future plan for the next three generations of mobile semiconductors. The challenge in designing multiple generations of chipsets for phones, tablets and other products years in advance is that you have to make an educated guess as to both the technological capabilities that might exist as well as consumer demand for new features and capabilities.A transcript of our conversation is available here.You can stream and download our full conversation, including the podcast extras, on Apple iTunes, Spotify, Overcast, Google, Bloomberg and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.We speak next week with David Dunning, professor of psychology at the University of Michigan, where he focuses on the psychology underlying human misbelief. He is best known for the Dunning-Kruger effect and why the unskilled are unaware of their lack of skills.To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.