Samsung appears to have put its financial troubles behind it, suggests the WSJ, noting that it has achieved an all-time record market cap and could be within striking distance of becoming the most valuable tech company in Asia.
After three years of struggle, shares of Samsung Electronics Co roared to an all-time closing high on Thursday, capping a 30% rally this year that underscores the technology giant’s improved fortunes.
Shares of the world’s largest maker of smartphones by shipments jumped 4.7% to finish the day at 1,640,000 Korean won ($1,480) a share, giving it a market capitalization of 232 trillion won ($210 billion).
That makes Samsung more valuable than Coca-Cola, Intel and Visa, notes the piece …
Alibaba is currently the most valuable tech company in the region, with Tencent Holdings in second place, but Samsung’s trajectory makes it a viable candidate for the top slot, having seen its stock price climb 44% over the past year.
Samsung’s mobile division has struggled to achieve profitability in the past couple of years, being forced to slash prices and offer two-for-one deals to maintain market share in the face of competition from Chinese rivals. But the company has successfully fought back, argues the WSJ, recently announcing its most profitable quarter in two years.
After Samsung’s mobile profit margin was ravaged by competition from low-cost Chinese handset makers, Samsung has managed to push its profit margin back up to 16%, the highest level since 2014.
“These guys pulled themselves up from the abyss,” said Joe Vari, a San Francisco-based portfolio manager at Artisan Partners Asset Management Inc., which manages $95 billion in assets, and has been betting on Samsung for the past three years.
FTC: We use income earning auto affiliate links. More.