Buyback potential in focus as modest profit expected to be posted by SoftBank. 😉

Crypto Investor’s Guide to SoftBank’s Profit Report

SoftBank Group is set to release its first-quarter profit report. Investors are eagerly awaiting the results to see if the tech investment giant will announce a share buyback or signal its willingness to do so. This year has been tumultuous for the market, especially impacting large-cap Japanese stocks and major tech companies like SoftBank. The company’s stock experienced a significant drop but has begun to recover.

Investor Pressure for Share Buyback

Many investors are pressuring SoftBank to initiate a share buyback.
The company’s market capitalization currently trades at a substantial discount to the value of its assets.

This discount has been growing over time.

Analysts estimate the discount at around 60% currently.

Activist Calls for Buyback

In particular, activist investor Elliott Management has advocated for a $15 billion share buyback program. This call has been echoed by several analysts, especially given the recent market turmoil, which has widened the gap between SoftBank’s market value and its net asset value.

Financial Position and Profit Forecast

SoftBank had $26 billion in cash reserves as of end-March.
The company’s net profit for April-June is estimated to be 109 billion yen.

This marks the third consecutive quarter of profitability for SoftBank.
Comparatively, the same period last year saw a loss of 316.2 billion yen.

Recent Investments and Ventures

SoftBank has been strategically investing in various technology startups.
It led a $1 billion funding round for UK-based self-driving car startup Wayve.
The company also acquired British AI chipmaker Graphcore in July.
Additionally, it invested in AI-enabled precision medicine company Tempus AI.

SoftBank and Tempus announced a joint venture in Japan.

Hot Take: SoftBank’s Share Buyback Decision

As a crypto investor, keep a close eye on SoftBank’s upcoming profit report. The company’s potential share buyback announcement could significantly impact its stock performance. Stay informed about the latest developments and decisions made by SoftBank to make informed investment decisions in the tech sector.