In this Oct. 25, 2020, file photo, a logo of Samsung Electronics is seen at its Seocho building in Seoul, South Korea. Samsung Electronics Co. said Thursday, Jan. 28, 2021, its operating profit for last quarter rose by more than 26% as it capped off a robust business year where its dual strength in parts and finished products allowed it to thrive amid the pandemic.(AP Photo/Lee Jin-man, File)
SEOUL, South Korea (AP) — Samsung Electronics Co. said Thursday its operating profit for the last quarter rose by more than 26% as it capped off a robust business year where its dual strength in parts and finished products allowed it to thrive amid the pandemic.
But the South Korean tech giant expects its profit to weaken in the current quarter with a weak dollar and costs associated with expanded production lines likely affecting its bread-and-butter computer memory chip business.
Like many technology companies, Samsung has gotten a boost from surging demand for its computer chips and devices as the pandemic forces people to work from home.
Samsung has also dealt with legal issues surrounding its vice chairman and de facto chief, Lee Jae-yong, who last week was sentenced by the Seoul High Court to two and a half years in prison for his involvement in a 2016 corruption scandal that spurred massive protests and ousted South Korea’s then-president.
“For 2021, the company expects a recovery in overall global demand but uncertainties persist over the possibility of recurring COVID-19 waves,” Samsung said in an emailed statement.
Samsung’s operating profit of 9.1 trillion won ($8.1 billion) for the October-December quarter represented a 26.4% increase from the same period a year before, while its revenue rose by 2.8% to 61.6 trillion won ($55.3 billion). The company’s operating profit for the full year of 2020 was at 36 trillion won ($32.3 billion), rising by more than 29% from 2019, according to a regulatory filing.
Samsung saw its semiconductor business rebounded sharply last year after a sluggish 2019, driven by robust demand for PCs and servers as virus outbreaks forced millions of people to stay and work at home. The Trump administration’s sanctions against China’s Huawei Technologies have meanwhile hindered one of Samsung’s biggest rivals in smartphones, smartphone chips and telecommunications equipment.
Samsung said it continued to see a strong overall demand for its memory chips in the fourth quarter as major clients launched new smartphone models and cloud computing companies increased their investment in data centers. PC demand remained strong, driven by Chromebooks, gaming notebooks and the release of new graphics cards and gaming consoles, the company said.
7 Stocks to Sell Before the New Year
We’re officially in the holiday season, which means it’s time to get our portfolios set for the new year. And for many investors, 2021 can’t get here fast enough. Don’t get me wrong. Overall, being invested in stocks has been a wise move. But it hasn’t been without its ups and downs. For investors to profit in this market, they have had to have conviction.
But having conviction also means knowing when it’s time to sell. One of the hardest things to do in life, as well as in investing, is to let go of an idea that simply isn’t working. There are a lot of story stocks out there. And while those stories may turn out to be more than fairy tales, in the long run, it doesn’t mean you have to pay tomorrow’s prices today.
Or, it could simply be a good time to take some profits. A new administration in Washington D.C. will bring a different, and most likely less favorable, tax policy regarding capital gains. It may be advantageous to take some of your gains now.
Whatever your motivation may be, we’ve put together a list of seven stocks that you should consider selling before the new year.
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