Samsung's Galaxy be aware 20, Galaxy Watch three And Galaxy Buds live …

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Samsung, the South Korean tech giant and Apple
AAPL
‘s rival, released several new products at its online event, ‘Unpacked 2020’. The product launches included Galaxy Note 20, Galaxy Note 20 Ultra, Galaxy Watch 3, and brand new True Wireless Earbuds. For investors, the question remains, how will these new products help the stock price?

About Samsung's

Samsung's Galaxy Note 20, Galaxy Watch 3 And Galaxy Buds Live …

About Galaxy
A galaxy is a gravitationally bound system of stars, stellar remnants, interstellar gas, dust, and dark matter. The word galaxy is derived from the Greek galaxias (γαλαξίας), literally “milky”, a reference to the Milky Way. Galaxies range in size from dwarfs with just a few hundred million (108) stars to giants with one hundred trillion (1014) stars, each orbiting its galaxy’s center of mass.
Galaxies are categorized according to their visual morphology as elliptical, spiral, or irregular. Many galaxies are thought to have supermassive black holes at their centers. The Milky Way’s central black hole, known as Sagittarius A*, has a mass four million times greater than the Sun. As of March 2016, GN-z11 is the oldest and most distant observed galaxy with a comoving distance of 32 billion light-years from Earth, and observed as it existed just 400 million years after the Big Bang.
Research released in 2016 revised the number of galaxies in the observable universe from a previous estimate of 200 billion (2×1011) to a suggested two trillion (2×1012) or more and, overall, as many as an estimated 1×1024 stars (more stars than all the grains of sand on planet Earth). Most of the galaxies are 1,000 to 100,000 parsecs in diameter (approximately 3,000 to 300,000 light years) and separated by distances on the order of millions of parsecs (or megaparsecs). For comparison, the Milky Way has a diameter of at least 30,000 parsecs (100,000 ly) and is separated from the Andromeda Galaxy, its nearest large neighbor, by 780,000 parsecs (2.5 million ly.)
The space between galaxies is filled with a tenuous gas (the intergalactic medium) having an average density of less than one atom per cubic meter. The majority of galaxies are gravitationally organized into groups, clusters, and superclusters. The Milky Way is part of the Local Group, which is dominated by it and the Andromeda Galaxy and is part of the Virgo Supercluster. At the largest scale, these associations are generally arranged into sheets and filaments surrounded by immense voids. Both the Local Group and the Virgo Supercluster are contained in a much larger cosmic structure named Laniakea.

Galaxy Note 20 and Galaxy Note 20 Ultra

On Wednesday, Samsung introduced its latest smartphone releases: Galaxy Note 20 and Galaxy Note 20 Ultra. Both high-end smartphones come with S Pen stylus, improved camera, better OLED display, and a more powerful processor. Both phones have three cameras on the back and a single camera on the front. The optical zoom on the Note 20 can zoom in by 3x, while the Ultra does 5x optical zoom. Both phones are water-resistant and contain Dolby technology.

Samsung's Galaxy Note 20, Galaxy Watch 3 And Galaxy Buds Live …

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Galaxy Watch 3 and Wireless Ear Buds

Samsung also introduced its Galaxy Watch 3, which comes in two sizes and has the ability to read blood oxygen level. The Galaxy Buds Live are being called true wireless earbuds by Samsung, and they feature active noise cancellation.

The Samsung Product Prices and Consumer Points

For investors, it is more about the price level for Samsung products. For them, it is about how much Samsung can really sell. Samsung seems to have an edge when it comes to showcasing and selling its products, ahead of Apple’s new products, as was seen with the latest iPhone launch.

The Samsung Galaxy Note 20 starts at $999, while the Note 20 Ultra, a more expensive device, costs $1299. The Galaxy Watch 3 starts at $400, and the one with 4G connectivity adds another $50 on top. The Galaxy Buds Live cost $179.

In terms of price levels, new devices are a bit more pricey, but they also mean more margin for Samsung. Samsung’s loyal users have a tendency to pay the asking price. But one thing to keep in mind is whether they can pay higher prices under the current circumstances when the global economy is at its knees.

Samsung Stock Metrics 

The trading volume for Samsung’s stock has been 15% higher than its 20-day average, and this is mainly due to hype around the new product launches. The call options, something that traders trade when they have a bullish view on the stock, increased more than 3-fold. In the previous session, it was 924 call option contracts, and the 20-day average is at 237 contracts. 

Samsung’s Stock Price Performance 

Samsung’s stock is trading at 5,800 won (South Korean currency) and it is up nearly 38% from its recent low. The below chart shows Samsung’s stock price over one year.

Samsung’s stock is up nearly 33% in the past 52 weeks and this is a strong performance in relative to the Kospi index which is up 22 percent. Samsung’s shares have climbed approximately five percent during the last 30 days. The company stock is trading at 16 times its estimated earnings per share for this year. Samsung’s dividend yield is 2.4 percent on a trailing 12-month basis. Insiders hold 4.9 percent stake and over the past six months, they have reduced their position by less than 0.1%. 

 

Bottom Line 

Samsung’s new products are promising and catchy as always, and this surely will attract attention. But the current pandemic situation is likely to adversely influence the sale of new products, especially at their current price points.