
Samsung Electronics Investors Are Bleeding: 81% in Losses Over 3 Years (Oct 2, 2024)
created At: 3/15/2025

Sell
This analysis includes a sell recommendation. Please carefully review all mentioned risk before proceeding.
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Fact
81.59% of investors who bought in the past three years are in losses.
Samsung Electronics closed at ₩61,300, hitting a 52-week low.
Macquarie slashed its target price by 49% (₩125,000 → ₩64,000) and downgraded the stock.
Shinhan Investment cut its target price from ₩110,000 → ₩95,000 but sees long-term upside.
Retail investors purchased ₩8.08 trillion worth of shares in September despite the downturn.
Opinion
This situation is beginning to resemble a classic value trap. While Samsung’s PBR appears low, relying solely on historical valuation metrics can be risky when core fundamentals are deteriorating. The company faces multiple headwinds, including:
Weaker pricing power in memory due to oversupply.
Inferior market positioning in HBM, with revenues projected to be only 43% of SK Hynix’s by 2026.
Declining smartphone sales, which further pressure earnings.
The fact that retail investors are pouring into the stock despite these challenges raises concerns about herd mentality. Their contrarian bet on a bottom may ultimately lead to further losses if fundamental issues persist.
Core Sell Point
Investors betting on a Samsung bottom should be cautious. The semiconductor downturn, weak AI positioning, and sluggish smartphone demand suggest that Samsung's fundamental challenges are far from over. The stock may continue to struggle unless earnings stabilize and competitive pressures ease.
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