Samsung’s Galaxy Note 20, Galaxy Watch 3 And Galaxy Buds Live Are Awesome, But What About Samsung Stock?
Samsung, the South Korean tech giant and Apple AAPL ‘s rival, released several new products at its online event, ‘Unpacked 2020’. The product launches included Galaxy Note 20, Galaxy Note 20 Ultra, Galaxy Watch 3, and brand new True Wireless Earbuds. For investors, the question remains, how will these new products help the stock price?
Galaxy Note 20 and Galaxy Note 20 Ultra
On Wednesday, Samsung introduced its latest smartphone releases: Galaxy Note 20 and Galaxy Note 20 Ultra. Both high-end smartphones come with S Pen stylus, improved camera, better OLED display, and a more powerful processor. Both phones have three cameras on the back and a single camera on the front. The optical zoom on the Note 20 can zoom in by 3x, while the Ultra does 5x optical zoom. Both phones are water-resistant and contain Dolby technology.
Galaxy Watch 3 and Wireless Ear Buds
Samsung also introduced its Galaxy Watch 3, which comes in two sizes and has the ability to read blood oxygen level. The Galaxy Buds Live are being called true wireless earbuds by Samsung, and they feature active noise cancellation.
The Samsung Product Prices and Consumer Points
For investors, it is more about the price level for Samsung products. For them, it is about how much Samsung can really sell. Samsung seems to have an edge when it comes to showcasing and selling its products, ahead of Apple’s new products, as was seen with the latest iPhone launch.
The Samsung Galaxy Note 20 starts at $999, while the Note 20 Ultra, a more expensive device, costs $1299. The Galaxy Watch 3 starts at $400, and the one with 4G connectivity adds another $50 on top. The Galaxy Buds Live cost $179.
In terms of price levels, new devices are a bit more pricey, but they also mean more margin for Samsung. Samsung’s loyal users have a tendency to pay the asking price. But one thing to keep in mind is whether they can pay higher prices under the current circumstances when the global economy is at its knees.
Samsung Stock Metrics
The trading volume for Samsung’s stock has been 15% higher than its 20-day average, and this is mainly due to hype around the new product launches. The call options, something that traders trade when they have a bullish view on the stock, increased more than 3-fold. In the previous session, it was 924 call option contracts, and the 20-day average is at 237 contracts.
Samsung’s Stock Price Performance
Samsung’s stock is trading at 5,800 won (South Korean currency) and it is up nearly 38% from its recent low. The below chart shows Samsung’s stock price over one year.
Samsung’s stock is up nearly 33% in the past 52 weeks and this is a strong performance in relative to the Kospi index which is up 22 percent. Samsung’s shares have climbed approximately five percent during the last 30 days. The company stock is trading at 16 times its estimated earnings per share for this year. Samsung’s dividend yield is 2.4 percent on a trailing 12-month basis. Insiders hold 4.9 percent stake and over the past six months, they have reduced their position by less than 0.1%.
Samsung’s new products are promising and catchy as always, and this surely will attract attention. But the current pandemic situation is likely to adversely influence the sale of new products, especially at their current price points.