By Amy EckerstromSeptember 21, 2018 09:10:57The Samsung Financing fiasco began in early October when the company began to lose money.
Then, last week, the company announced it had decided to sell its entire manufacturing business to Chinese company Huawei, the world’s second-largest smartphone maker.
The sale was meant to allow Samsung to return to profitability, and analysts had been predicting a positive return for the company.
That hope was dashed.
On Wednesday, analysts at Goldman Sachs and Credit Suisse downgraded the stock, saying the company’s ability to continue to attract and retain customers would be severely damaged by the deal.
In their reports, the analysts also said the company could see revenue drop by as much as 5 percent, which would be a “significant blow to Samsung.”
In a statement, a Samsung spokeswoman said the deal with Huawei was the only way for the manufacturer to remain profitable.
“The announcement of the sale was a result of a long-standing and mutually beneficial collaboration between Samsung and Huawei, a leading global supplier of mobile phones,” the spokeswoman said.
“We are extremely proud of the achievements we have achieved in manufacturing and manufacturing is an important pillar of our business and our strategy.
We will continue to work with Huawei to continue building on our partnership and continue to achieve positive results for our customers.”
On Friday, Samsung announced it would sell all of its manufacturing and distribution businesses, including its manufacturing facilities in Hong Kong and Shenzhen.
The company also announced that it had signed a $1.9 billion deal to acquire an additional 25 million square feet of office space in Beijing.
The stock market, which is widely seen as the best way to gauge the health of the company, has recovered slightly since the crisis began.
However, it remains under pressure as the global economic recovery continues to be sluggish.
The price of oil has dropped significantly since the beginning of the year, and the global economy is struggling with a debt crisis.
In the last week alone, the U.S. Federal Reserve announced that interest rates would be cut, and that bond yields would begin to rise.
The S&P 500 index has gained almost 3 percent this year, while the Dow Jones Industrial Average has risen nearly 8 percent.