Samsung Electronics' shares hit a new high on Sunday, closing at approximately $1,550 and continuing to perform in a positive manner on Monday as they're currently boasting a 2.82% increase in comparison to yesterday. The company's steady rise in stock value comes only days after Samsung published an earnings guidance according to which the tech giant is expecting to post $7.2 billion in Q4 2016 earnings, 50% more than in Q4 2015. Recent industry reports suggest that the Seoul-based conglomerate is ending the year on a high note mostly thanks to strong sales of its chips and displays. Samsung's diversified portfolio helped the company recoup the losses incurred after the discontinuation of the Galaxy Note 7 which reportedly cost the firm around $3 billion. The South Korean tech giant will post its Q4 2016 financials in the coming weeks, which will likely prompt another rise in the price of its shares.
Investors are understandably optimistic about Samsung's prospects and are consequently driving up its valuation seeing how the company proved it can still run one of the most profitable consumer electronics businesses on the planet even when one of its major divisions like the mobile division not only underperforms but experiences a worldwide fiasco. Most of the profits generated by Samsung's mobile unit are attributed to flagship phones as profit margins are incredibly thin on the lower end of the Android smartphone spectrum, which is why investors believe it's a good sign Samsung is still performing well even when its last successful flagship was released almost a year ago.
Overall, the Seoul-based tech giant is expected to have a somewhat quieter first quarter of the year when the demand for chips and displays traditionally drops, but Q2 2017 is bound to be an exciting period for Samsung. The company is rumored to unveil the Galaxy S8 in April, while the phone itself should launch worldwide shortly after. According to most reports, Samsung's next flagship is going to offer a significant upgrade on the Galaxy S7 and the Galaxy S7 Edge, so coupled with the power of the Galaxy brand, it could prove to be a huge commercial success and generate billions in profits.