Softbank Group shares took a nosedive on Thursday, dragging down Japanese markets as mixed earnings and guidance from cloud giant Oracle raised fresh worries about excessive spending on artificial intelligence.
#Softbank (TYO:9984) dropped 7.7% to a one-week low of 17,210.0 yen by 22:34 ET (03:34 GMT), making it the biggest loser on the Nikkei 225 index, which fell by over 1%.
The decline in Softbank followed a more than 10% drop in Oracle (NYSE:ORCL), which plummeted after its fiscal second-quarter earnings report. Although the company exceeded market expectations for its net income, it fell short on revenue and provided a weaker-than-anticipated outlook for the upcoming quarter.
#Oracle also raised its fiscal 2026 capital expenditure forecast to $50 billion from $35 billion. The mixed earnings, along with expectations of increased capex, reignited concerns about how Oracle intends to profit from its substantial AI data center spending plans. There are also worries about the company’s debt load, following billions in issuances this year, and its significant exposure to OpenAI, which negatively impacted sentiment towards the stock.
BMO analysts pointed out that Oracle’s ties to OpenAI pose some long-term risks, considering the scale of the startup’s spending commitments and uncertainties about how it plans to fulfill those promises.
These worries spilled over to Softbank, which has a heavy investment in OpenAI. Softbank CFO Yoshimitsu Goto recently mentioned to Nikkei that the tech conglomerate is firmly focused on OpenAI and has no interest in funding its rivals.
#Softbank (TYO:9984) dropped 7.7% to a one-week low of 17,210.0 yen by 22:34 ET (03:34 GMT), making it the biggest loser on the Nikkei 225 index, which fell by over 1%.
The decline in Softbank followed a more than 10% drop in Oracle (NYSE:ORCL), which plummeted after its fiscal second-quarter earnings report. Although the company exceeded market expectations for its net income, it fell short on revenue and provided a weaker-than-anticipated outlook for the upcoming quarter.
#Oracle also raised its fiscal 2026 capital expenditure forecast to $50 billion from $35 billion. The mixed earnings, along with expectations of increased capex, reignited concerns about how Oracle intends to profit from its substantial AI data center spending plans. There are also worries about the company’s debt load, following billions in issuances this year, and its significant exposure to OpenAI, which negatively impacted sentiment towards the stock.
BMO analysts pointed out that Oracle’s ties to OpenAI pose some long-term risks, considering the scale of the startup’s spending commitments and uncertainties about how it plans to fulfill those promises.
These worries spilled over to Softbank, which has a heavy investment in OpenAI. Softbank CFO Yoshimitsu Goto recently mentioned to Nikkei that the tech conglomerate is firmly focused on OpenAI and has no interest in funding its rivals.
Nota
#softbankwith it's complex right should
the neckline has been triggered.
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.