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SoftBank swings to $7 billion net loss in second quarter as tech selloff weighs on results
The Japanese conglomerate’s revenue beat estimates as mark-to-market losses and a broader AI stock selloff dragged results into the red.
- On Tuesday, SoftBank Group reported a fiscal second-quarter net loss of 1.12 trillion yen , a sharp reversal from the 2.5 trillion yen profit recorded in the same period last year.
- A subsidiary's revised US data center equipment plans triggered a $3.7 billion loss, while financing costs more than doubled to 462 billion yen during the quarter.
- SoftBank committed $1.85 billion to develop AI infrastructure in Malaysia with Grab and PETROS, complementing its $30 billion follow-on investment in ChatGPT-maker OpenAI, which raised its ownership stake to approximately 13%.
- Investors responded positively to an overnight Wall Street rebound, sending SoftBank shares 13.9% higher on Tuesday despite The Democratic Party's midterm success heightening expectations for regulatory scrutiny in the AI sector.
- Earnings volatility persists for SoftBank as the company's fortunes remain tied to the broader AI industry, with plans to monetize its stake through an OpenAI IPO delayed to next year.
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16 Articles
16 Articles
Chip manufacturer TSMC increases sales by 60 percent +++ K+S defies weak industry trend – forecast concreteises +++ Boom in the chip business spurs Jenoptik +++ The newsblog.
·Düsseldorf, Germany
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SoftBank Logs $7 Billion Loss After US Data Center Costs Swell
SoftBank Group Corp. reported its first net loss in almost two years after swallowing a $3.7 billion writedown over a US data-center project amid rising fears around the sustainability of AI growth.
·New York, United States
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Coverage Details
Total News Sources16
Leaning Left0Leaning Right3Center8Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
C 73%
R 27%
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