Business · Markets · 14 hrs ago

Samsung’s record profit draws a cautious response from investors

Samsung’s record profit draws a cautious response from investors

Samsung reported its highest quarterly operating profit ever, a record for a technology company.

Yet investors have responded cautiously to the gains at Samsung and other memory-chip makers.

Their low expected price-to-earnings ratios suggest investors doubt that current profits will last.

Memory-chip production is a cyclical business, with profits that can rise and fall over time.

Analysts warn that companies expanding production capacity could eventually push profits down.

The key question for investors is whether today’s strong earnings can continue.

Sources

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