SoftBank Group Shares Reach Record High After Q1 Profit Surpasses Estimates

SoftBank Group shares surged 13% to a record high after Q1 profit beat estimates at ¥421.8 billion ($2.87 billion), its second consecutive quarter of profit and a reversal from a ¥174.28 billion loss in the same period last year. The company attributed the gain to private investments in listed companies such as Grab Holdings and Swiggy.

SoftBank Group's shares surged 13% to a record high after the company reported a better-than-expected first-quarter profit of ¥421.82 billion ($2.87 billion). This marks the second consecutive quarter of profit for the Japanese technology investment company, reversing a ¥174.28 billion loss in the same period last year [1].

The company attributed the gain to private investments in listed companies such as Grab Holdings and Swiggy, as well as a recovery in its tech funds business. The tech funds business posted a profit of ¥451.39 billion, compared to a ¥204.30 billion loss a year earlier [2].

The earnings improvement came alongside a rally in tech stocks, driven by enthusiasm over artificial intelligence. SoftBank has been making bolder investments in recent months, including a $40 billion investment in OpenAI, valuing the ChatGPT maker at $300 billion [1].

Shares of SoftBank Group had risen 37% so far this year through Thursday's close, fueled by hopes that the companies it has invested in, including U.K. chip-design unit Arm Holdings, will benefit from growing AI demand [2].

References:
[1] https://www.marketscreener.com/news/softbank-group-posts-quarterly-profit-as-ai-bet-pays-off-update-ce7c5edfdc8ef625
[2] https://www.marketscreener.com/news/softbank-group-shares-surge-after-quarterly-profit-beat-ce7c5edcda80f620