FAA’s Galaxy Note 7 warning wiped $10 billion from Samsung’s market value

The Federal Aviation Administration recently put out a warning about the Galaxy Note 7 being a potential fire hazard and urged passengers to not use the handset on flights. Samsung’s stock has already been under pressure since the company confirmed its global recall for the Galaxy Note 7 and this warning certainly did not help. Soon after the FAA’s warning was issued, Samsung’s stock was hammered and with more than $10 billion being wiped from the company’s market value.

Yesterday was the last trading day of the week and Samsung’s stocked closed at 1.575 million won ($1,432) in Seoul, down 3.9 percent from the previous day’s close. The stock was already under pressure but it hadn’t taken such a severe beating as investors were upbeat about the steps Samsung was taking to address the issue. Samsung is now working hard to replace all 2.5 million units of the Galaxy Note 7 that it shipped worldwide following the release on August 19. It’s strongly urging customers to take part in the exchange program and take a Galaxy J series handset as a loaner until the new inventory arrives is just over a week.

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