Japanese technology investor SoftBank Group is expected to slip back into the red when it reports earnings on Monday despite technology stocks including Arm Holdings its core asset, performing well over the quarter.
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 initial public offering (IPO) market remained subdued, leaving analysts uncertain of the monetization prospects for SoftBank's portfolio of unlisted tech startups.
But while the Arm stake may make possible an investment on this scale, its dominance within SoftBank's portfolio poses a risk should market sentiment turn, hitting SoftBank's value and fundraising capacity.
Morningstar analyst Javier Correonero estimates a fair value for Arm of $57 per share, compared to its recent trading range around $100 per share.
Persons:
SoftBank, Arm's, DiDi, Shogo Tono, Javier Correonero
Organizations:
SoftBank, Arm Holdings, Grab Holdings, LSEG, Nomura Securities, Nvidia, Morningstar
Locations:
Britain, Coupang