SoftBank Returning To Loss In Q4 Despite Tech Stock Strength

Japanese technology investor SoftBank Group is expected to slip back into the red when it reports earnings despite technology stocks including Arm Holdings, its core asset, performing well over the quarter, Anton Bridge reported for Reuters.

Arm's share price does not feed into SoftBank's profit as it is a subsidiary. I Photo: ソフトバンク（SoftBank) Facebook 

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.

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 (AI).

Arm's share price does not feed into SoftBank's profit as it is a subsidiary, however.

The performance of SoftBank's other listed assets were mixed over the quarter - shares in Coupang and DoorDash rose but DiDi Global and Grab Holdings fell. The initial public offering (IPO) market remained subdued, leaving analysts uncertain of the monetization prospects for SoftBank's portfolio of unlisted tech startups.

SoftBank is slated to record a net loss of 72 billion yen ($462.70 million) over January-March, according to the average of two analysts polled by LSEG, compared to a 985-billion-yen net profit in the previous three months.