The media, citing expert opinions, report that SoftBank Group Corp. will report a small profit.
The mentioned point of view is based on the fact that the mistakes of the past continue to be a sensitive factor affecting the performance of the mentioned Japanese company. This fact does not even negate the circumstance that the founder of the SoftBank Group, Masayoshi Son, intends to make another big bet on artificial intelligence.
It is expected that on Wednesday, August 7, the company will release statistics according to which its net income for the second quarter of the current year amounted to 1 billion yen ($6.9 million). The analysts who were interviewed by the media adhere to the corresponding forecast. It is worth noting that a year earlier, the company reported a net loss of 477.6 billion yen. It is also important in this context that the previous two quarters were a positive period for SoftBank Group from the point of view of the financial dimension of its activities.
The expected results for April-June of the current year are a reflection of the ongoing drag of hundreds of unprofitable startups that are on the balance sheet of the Vision Fund.
SoftBank Group will publish a report on its financial results for the second quarter of 2024 at a critical moment. Last Monday, August 5, against the background of a global downturn in the market, which affected, among other things, Japan, the company’s shares fell significantly in price. In this case, the fall in the value of securities is the result of increasing concerns about when the moment will come when investments in artificial intelligence will generate a profit. It is worth noting that since the debut of ChatGPT from OpenAI in 2022, the so-called boom of machine intelligence has been observed in the world. Also, it is worth noting that artificial intelligence is an objectively promising technology, but there is a risk that estimates regarding the speed of materialization of its potential are excessive and outstrip the evolution of digital thinking systems.
It is worth noting that on Tuesday, August 6, the value of SoftBank Group shares partially recovered after falling on Monday. At the same time, the company’s market capitalization is still $50 billion below the record high reached last month.
As we have reported earlier, SoftBank Stock Hits Record High.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
