SoftBank shares tumble after $7 bln quarterly loss

Investing.com– SoftBank Group (TYO:9984) shares fell sharply on Wednesday after the Japanese technology investor reported an unexpected quarterly loss, with heavy spending on artificial intelligence infrastructure and rising financing costs adding to concerns about its investment strategy.

Our AI stock portfolio is beating the S&P 500 by 118%. Discover the stocks we’re buying and the opportunities we’re watching next. Exclusive for Yahoo! Finance readers: 55% off for Black Friday, plus an extra 10% at checkout. Subscribe today! »

Tokyo-listed shares dropped as much as 10.5% to 3,465.0 yen, and last traded 6.1% lower at 3,636.0 yen by 01:08 GMT, reversing some of Tuesday’s gains ahead of the earnings announcement.

Stop chasing stocks after they’ve already rallied. Find your next investment opportunity with AI stock picks, earnings insights, and market-moving news. Yahoo! Finance readers get an extra 10% off on top of the 55% off Black Friday price. Join today! »

SoftBank reported a net loss of 1.12 trillion yen ($7.1 billion) for the July-September quarter, compared with a profit of 2.5 trillion yen a year earlier. The loss was significantly larger than analysts’ expectations.

The company recorded a $3.7 billion loss from advance payments for equipment for U.S. data centre projects after plans were revised. Financing costs more than doubled to 462 billion yen during the quarter.

SoftBank has invested $64.6 billion for a 13% stake in OpenAI, making its fortunes increasingly dependent on the artificial intelligence sector.

Investor concerns have intensified amid a broader sell-off in AI-related stocks, questions over the profitability of data centre investments and rising borrowing costs.

Original Article

SoftBank shares tumble after $7 bln quarterly loss

What could drive India’s Nifty higher? BofA outlines key risks

U.S. stock futures tick higher after Wall St slips on hot CPI, Nvidia losses