SoftBank stock price soars as Vision Fund earns billions

Shares of SoftBank Group (T: 9984) soared 4.45% to fresh record highs in Tokyo today after the investment giant reported quarterly earnings that smashed analysts’ estimates. 

Fundamental analysis: Tech position return profits

SoftBank Group said it made a profit of 1.17 trillion yen ($11 billion) for the quarter ending December 31, to crush analysts’ expectations of 171 billion yen ($1.62 billion). This quarterly performance contributed to a profit of 3 trillion yen ($28 billion) for the nine months to end-December. 

“Our vision never changed. Golden eggs are not produced by chance,” Chief Executive Masayoshi Son said during a press conference in Tokyo. He later added that “you wouldn’t say Vision Fund is laying rotten eggs.”

His much-discussed Vision Fund – which manages over $100 billion in capital – has delivered big time for the company. It earned 844 billion yen ($8 billion) in the third quarter as the investment giant took advantage of unprecedented fiscal stimulus to support embattled markets. 

The financial report shows the Fund has 82 investments that increased from $76.3 billion to $90 billion during the quarter. The other smaller fund – Vision Fund 2 – soared from $4.3 billion to $9.3 billion.

On the other hand, the company’s other investment subsidiary SB Northstar reported a loss of  113 billion yen ($1.11 billion), with the fund holding stakes in the valuation of  $22 billion.

In September, shares of the company fell sharply on reports that the Japanese giant is the “Nasdaq whale” who placed billions in tech stock options. 

Technical analysis: Record highs printed

SoftBank Group stock price gaine 4.45% to hit 9639 – a new all-time high for the stock. Shares are up nearly 17% in January already as buyers work to continue the trend of monthly gains.

SoftBank daily chart (TradingView)

As seen in the chart above, SoftBank stock price tagged the short-term resistance above the 9600 mark and then rotated lower on profit-taking. The buyers are likely to target the psychologically-important 10,000 level next. 

Summary

Shares of SoftBank rose to all-time highs after the company reported a profit of 1.17 trillion yen ($11 billion) for the Q3.

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