SoftBank seen returning to loss in fourth quarter despite strength in tech stocks

Asia Economy Nyheter

SoftBank seen returning to loss in fourth quarter despite strength in tech stocks
Softbank Group Corp,Softbank Group Corp,Arm Holdings PLC

Analysts and investors are also eagerly awaiting clues about new growth investments as SoftBank has ample liquidity and can monetize its huge holding in Arm.

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The share price of Britain-based Arm, in which SoftBank has a 90% stake, roughly doubled in February after strong earnings results stoked investor excitement over Arm's anticipated gains from the adoption of generative artificial intelligence , but Arm's share price does not feed into SoftBank's profit as it is a subsidiary.fell.

SoftBank's management has said it is ready to make new growth investments but has stressed it will adopt a cautious approach. SoftBank could fund up to $30 billion by combining its liquidity at hand as of the end of 2023, the proceeds of bonds issued in March and by negotiating a margin loan on its Arm stake, according to calculations by Nomura Securities credit analyst Shogo Tono.

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