SoftBank Group Corp. stock is listed on the Tokyo Stock Exchange (TSE) under the ticker symbol 9984.T. If you are looking to invest in SoftBank, you can either choose the Tokyo listing, or the OTC listing in the U.S. under SFTBY.
SoftBank Group Corp. Shares Today (9434.T)
SoftBank Group EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | -$2.23 | $54.21 billion |
| 2021 | $11.01 | $49.05 billion |
| 2022 | -$4.56 | $47.24 billion |
| 2023 | -$6.54 | $46.10 billion |
SoftBank Group Corp. is a Japanese holding company with a diverse portfolio of investments spanning telecommunications, technology, and finance. The company operates via its segments such as the SoftBank Vision Fund, SoftBank, Arm, Brightstar, and more.
Founded in 1981 by Masayoshi Son, the company has grown from a software distributor into a global investment firm. Through its Vision Fund, SoftBank has become an influential investor in the technology sector, holding or previously holding stakes in companies such as Arm Holdings, Alibaba, ByteDance, Grab, Uber, and WeWork.
SoftBank operates in several key segments, including telecommunications through its ownership of SoftBank Corp., one of the largest Japanese mobile carriers, and its internet services through Yahoo Japan.
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Industry Comparison
SoftBank Stock Price & Dividend Yield
SoftBank’s stock has experienced sharp fluctuations over the years due to its heavy exposure to volatile tech investments. The shares hit an intra-day peak of over JPY 12,000 in July 2024, as technology stocks surged globally, but it fell sharply soon after, and as of October 16, 2024, SoftBank shares are trading around JPY 9,094 mark.
Dividend Yield: 0.50%
YOUR CAPITAL IS AT RISK
SoftBank Group Share Price Forecast
Analysts covering SoftBank are mostly bullish. Out of 19 analysts providing a rating for the stock over the last three months, 15 recommend a Buy rating, while four have issued Hold ratings.
A View From The Bulls: In a March note, HSBC raised its price target on Softbank to JPY 10,000 from JPY 6,700, maintaining a Hold rating on the stock. The bank highlighted the strong performance of Arm Holdings, saying they failed to predict the change in perception of Arm. ” Post 3Q results, Arm is seen as a beneficiary of AI demand,” said HSBC, noting the higher values for Arm and T-Mobile. Despite their current Neutral stance, the bank also said that SoftBank’s clarity on strategy is a catalyst for the stock.
A View From The Bears: On the other hand, Jefferies recently cut its target for SoftBank to 13,230 from 17,120. They highlighted the value of listed investments such as ARM, SBKK, TMUS, and DT and unlisted investments as a reason for the lowered target. The big change “is due to ARM stock falling sharply during the last month,” said Jefferies. In December 2023, JPMorgan lowered its price target on Softbank to JPY 6,700 from JPY 7,000, maintaining a Neutral rating on the stock.
Average Analyst Consensus 12-Month Price Target: JPY 11,640
Our View: SoftBank Group offers a unique investment proposition, blending traditional telecommunications services with high-growth, high-risk technology investments. While its visionary approach to tech investing through the Vision Fund has led to significant gains, it also exposes the company to considerable volatility, as seen in its struggles with some underperforming assets.
The company’s long-term success depends on its ability to identify future tech trends, especially in areas like AI, while minimizing risks associated with its private investments. However, the stock may be more suited to certain types of investors.
Who Should Buy Softbank Group Shares?
SoftBank shares are suitable for investors with a high-risk tolerance who are comfortable with the volatility inherent in the tech sector and private equity investments. The stock offers exposure to some of the most exciting areas of the global technology industry, including AI, semiconductor design, and telecommunications.
However, it may not be ideal for income-focused investors, as the company’s dividend payments are often secondary to its capital reinvestment strategy. SoftBank’s performance is heavily tied to the success of its investments, so potential buyers should be prepared for significant fluctuations in share price based on market sentiment and portfolio performance.
SoftBank offers high-growth potential through its stakes in leading tech companies, but it comes with risk. Investors who are comfortable with these dynamics and have a long-term horizon may find SoftBank shares an attractive option. Those looking for stability or predictable returns, however, might prefer more traditional investment options.
