SoftBank Group is likely to report a small profit, an indication of how past mistakes continue to weigh on the company even as billionaire founder Masayoshi Son prepares his next big artificial intelligence bet.
Emerging from a month of sharp selloffs, the Tokyo-based investment firm is on Wednesday expected to report a net income of ¥1 billion ($6.9 million) for the June quarter, according to the average of three analysts polled. That compares with a big loss of ¥477.6 billion a year ago, but is tiny compared with profits in the preceding two quarters, attesting to the continued drag from hundreds of loss-making startups that remain on Vision Fund books.
SoftBank is preparing to report earnings at a critical juncture. Its stock plunged Monday by its most since 1998 as investors fled global tech stocks, partly on concerns over the time it will take for much-hyped AI to yield profits. The shares recouped most of that loss Tuesday morning, but SoftBank’s market value was still down roughly $50 billion from a record high notched in July.
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