🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Softbank logs unexpected loss in Q1, announces $3.4 bln buyback

Published 08/07/2024, 02:32 AM
© Reuters.
9984
-
SFTBY
-

Investing.com-- SoftBank Group Corp. (TYO:9984) clocked an unexpected loss in the June quarter despite increased technology valuations on optimism over artificial intelligence, although the company still announced a 500 billion yen ($3.4 billion) share buyback. 

The tech investment giant clocked a net loss attributable to owners of 174.28 billion yen, compared to a loss of 477.62 billion yen last year. The figure missed Bloomberg forecasts for a small profit of 1.05 billion yen. 

Net sales grew 9.3% to 1.70 trillion yen, while the firm marked a 559.7 billion yen investment gain in the quarter, compared to a 699.0 billion yen loss last year. 

But despite breaking two straight quarters of profits, Softbank (OTC:SFTBY) declared a share repurchase program of 500 billion yen. 

The buyback comes amid growing investor pressure on the tech giant to buy back its shares, which were trading at a significant discount to the total value of the firm’s holdings. 

Softbank’s Vision Funds, through which it makes most of its tech investments, marked a gain on investments of 1.91 billion yen, down from the 159.77 billion yen seen last year. 

But while the investment giant benefited from high-flying tech valuations in the June quarter, it grappled with increased market volatility in the past month, as questions over AI’s potential, an unwinding carry trade and fears of a U.S. recession battered equity valuations across the board. 

British chip designer Arm Holdings (NASDAQ:ARM), which is Softbank’s biggest holding, slumped 38.6% in the past month on doubts over AI demand, while the firm also clocked presented a disappointing outlook for the current quarter.

Still, Softbank CEO Masayoshi Son has presented a largely bullish outlook on AI, and has flagged plans for Softbank to explore multiple ventures in the sector, including developing its own generative AI.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.