Samsung Market Cap Drops $12 Billion Following Verdict

Posted by at 4:49 pm on August 27, 2012

In the first day of trading since a California jury handed Apple a $1.05 billion victory over Samsung, shares in the South Korean electronics manufacturer tumbled by about 7.5 percent to finish at their lowest close in a month. In a day of heavy trading, Samsung shed more than $12 billion in value as investors feared that the verdict would signal future troubles given that the company faces yet another patent lawsuit from Apple, one that targets its best-selling Galaxy S III. Despite the stock price drop, a number of investors believe the Korean company is on solid footing going forward.

Samsung shares had fallen as much as eight percent on the day, to 1.173 million won ($1,000), only to rise slightly to 1.18 million won ($1,040). A total of $1.27 million Samsung shares changed hands today, or four times the daily average it saw last week. Today marked the largest day in trading for Samsung since October of 2008.

Investors feared that Friday’s verdict could represent a significant obstacle for Samsung going forward. Samsung’s tablet and smartphone segments account for about 70 percent of the company’s earnings.

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