Bad Samsung News & Good Tesla News

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Well we got some bad bad news last night in regards to samsung’s profit numbers revenue numbers we’re going to go through all that in this video today also gonna talk about tesla some very good news came out in regards to tesla and at the end i want to share with you guys something i thought was kind of a contradictory and a little funny ok so i hope you guys

Enjoyed this is always hit a thumbs up let’s get straight into this alright samsung electronics posted one of his worst performances in the fourth quarter as global customers cut their orders for memory chips if you didn’t know samsung has a huge memory chip maker out there a lot of people think of samsung as like tvs and phones they actually have a lot bigger

Businesses and just at the south korean tech giant announced tuesday that its operating profit tumbled nearly 29 percent on the year to nine point six six billion so they still make a lot of money but they’re making way less money than they used to make those put it that way okay for the october through december period in the preliminary earnings guidance revenue

Dropped ten point six percent to fifty nine trillion won during the same period the final data will be unveiled later this month analysts attributed the weaker results to a lower global demand for server drams as well as a slowdown in emerging market analyst had contributed the weaker result to lower global demand for server d rams as well as slowdown in emerging

Markets samsung is the largest drm maker with a forty five percent share of the world’s market for dram okay now some industry watchers are saying the worst may be yet to come numerous that dram and nan prices will decline thirty one in forty four percent respectively this year lowering samsung’s operating profit in the memory sector by forty five percent okay

So samsung’s memory business is a mess right now basically any memory business is a mess right now memory can be very commoditized sake products especially dram and nand and you know depending on if there’s a ton of demand and a limited supply out there though you know prices just go through the roof and that’s kind of what we saw you know throughout 2016 and

Going in through you know 2017 and especially in the 2018 and now sudden we’re just coming off of that was massive you know memory prices everybody was having to pay nelsen demand has dried up in a big big way and there’s still the supply out there and so memory prices are just dropping in popping and dropping okay samsung said marketing expenses and flat sales

Volumes led to a decline in profitability in a stagnant but fiercely competitive market in the smartphone business over the third quarter of 2018 samsung saw more than a 13% drop year-over-year decline in global smartphone shipments okay so this isn’t bad on two friends okay their memory business is a mess though chip business is a mess okay but then on top of that

There’s smartphone businesses down 13 percent over year-over-year alright and i would say in the hotter you know samsung makes a lot of different types of smartphones okay they make ones in the very very high end which a lot of the people that are north american viewers you might have samsung’s you might know of samsung for their higher-end phones but samsung also


Has a huge business that’s more in the mid price type phones okay so the fact that they’re down 13 percent year-over-year speaks volumes to how that like the smartphone environment is out there right now it’s a very weak environment and there’s just no one really posting strong numbers in the smartphone segment right now and that’s just the way it is no i thought

With how bad the memory numbers were at that mu stock might be down huge today based upon that but it’s not really it’s down around 2% roughly so a little surprised to see mu not down a huge of amount because mu is one of the biggest memory makers out there it’s the biggest pure-play on memory and with how bad you know samsung’s numbers were and when in regards to

Memory and what they had to say there i thought maybe mu would be down even more but at the same time and you has fallen you know 50 percent from its high as a hit in 2018 so maybe he’s you know all his bad news is already priced in that’s eventually you get to that place on a stock where there’s been so much bad news it almost can’t hit code down anymore cos has

Already been baked in alright so that covers samsung bad news for their businesses across the board there’s really nothing going well for samsung right now everything is down year-over-year for that mall right now no we got to talk about tesla in two pieces of news in regards to tests okay first as this was announced last week i never got to really talk about it

But larry ellison got named to the board of directors of tesla and he actually you know had to reveal his 1 billion dollar stake in the automaker he mentioned it in the interview that he had around three million shares but it was never 100% confirmed now it’s 100% confirmed by the way just for my quick take on that larry ellison add to the i think that’s a very

Good you know add to the board of directors larry ellison probably not the most likable person in the world let’s be completely honest but that guy is a ruthless businessman and he really understands how to compete in unbelievably competitive markets and what he built there oracle if you don’t know he built the company named oracle into this massive goliath company

Became one of the richest people in the world probably knew you know if you watch the interviews of larry ellison you probably don’t like the guy very much but i’m just being honest like he’s oh he’s really smart when it comes to business and understands competitive strengths versus weaknesses and things like that so i think he’s a great acquisition to the board

And the fact that he has a billion dollars of tesla shares i love that i love when a board of directors has massive ownership in a company that they actually owe the you know kind of overseeing whatnot i love that okay i just want to carry on with that point for just a second here i love you know i must test the shareholder i love the fact that when you look at

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Tesla’s executive team in the board of directors you’re finding more and more people that have huge ownership stakes in the company and want the company to succeed over the long term financially you obviously have elon musk who runs a companies a biggest shareholder by far in a way of the company owns tens of millions of shares and most of his net worth is tied

To the fact that tesla succeeds over time you have jeffery stu-ball who’s the cto of tesla owns well over 300,000 shares so he has a massive ownership he obviously wants tesla’s to succeed over the long term you had someone like larry ellison to the board of directors has a you know of a position worth somewhere around 1 billion dollars in the company which tesla

Is only about you know a 60 billion dollar market cap or so so if 1 billion dollar stake is a major major shareholder you have someone like that on your board of directors i just love the fact that you know it reminds me of the gordon gekko clip not all companies as far as executive teams and board directors actually have big ownership stakes in the companies

And that’s unfortunate it’s not that way with tesla though next thing i want to talk about here is tesla has started building its shanghai factory to make cars for china okay this just got announced by elon musk otto’s twitter page about a day or so ago and this is very very exciting alright what’s interesting is how fast will he be able to build this this giga

Factory and get it up and running as far as what oh i must have to say he says i’ve been very impressed with the construction in shanghai it’s very efficient it’s very fast high quality and i that when we were building the tesla supercharger network we were able to build this amazing supercharger quite a big supercharger in downtown shanghai in like 12 days it was

Amazing it was a fastest we’d ever built anything in the world the elon musk at assay so it’s gonna be very interesting to see how fast they can get this up and running they’re talking about possibly having some production out of that factory in like six to nine months which is like ridiculous okay i thought you know it would be at least one to two years before

They start any type of production out there if they could start something you know that like they just started that if they could get some production actually starting out of there in six to nine months if that is ridiculous guys no we know the chinese want to get this done as fast as possible we know the chinese love to make headlines for building stuff fast right

Remember just a couple years ago when they built the skyscraper in nineteen days i was insane okay i doubt the this giga factory is gonna get built in nineteen days so don’t get your hopes up but i mean as far as the chinese though the way they kind of look at and they want the way they want to brand themselves as far as builders out there they’re gonna want to

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Get it they wouldn’t want to impress elon musk’s they want to get this built fast and we’re gonna kind of see how fast they can actually get this built there’s got to be a huge thing for tesla overall as far as you know the freight costs just from shipping cars all the way from california all the way to china and whatnot to get that that factory up and running in

China and how big of an electric market that’s going to be for electric vehicles over time this is a big big thing for tesla it’s one of the biggest things test size going for it and then maybe model why coming in a year or two so very exciting stuff there now i want to share with you guys something pretty funny okay so if you didn’t know disney’s hiking prices at

Their california theme parks that’s always funny to read comments on seeking alpha cq by the way seeking alpha is like a website where you can kind of like you know learn about stocks and you read articles people have written and things like that it’s always funny to read things like like people hating on a company going up in price or something like that the other

Person sums it up perfectly with their content wise poker guy says it continuously makes me laugh how people probably claim to be capitalist since this is a financial website continually bash companies that increase prices on something that no consumer has to purchase or is forced to attend will the customers continue to come isn’t that the type of equity you want

To own increase profits and decrease costs isn’t that right out capitalism 101 last time i checked there was no life saving function that disney provided to its customers so to equate disney to biopharma firms is ridiculous no one is forced to go to disney land if someone doesn’t want to pay the admission price they don’t have to go you should stop complaining

About it it’s entertainment just like all other forms of entertainment it’s priced at what the market will bear if attendance drops i’m pretty sure bob iger it will adjust the disney’s pricing strategy and tell them i’m fairly certain people will continue to flock to disney themes parts so if you decide not to go that means just one less top one less person not

Crowding up things for everybody else that was such a well put statement there i love that guys because some people you know they try to claim to be capitalist and then yeah i see that sometimes in the comment section and then people are like oh why so-and-so charging so much it’s like dude like like yeah this is capitalist type stuff like if you don’t want to be

Engaged in this type of stuff stock market community business and whatnot like we don’t need two guys here at the end of the day this is capitalist type stuff so i love that comment guys anyways hope you enjoyed this as always in a thumbs up if you did thank you for watching and have a great day

Transcribed from video
Bad Samsung News & Good Tesla News By Financial Education

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