Japanese financial company Softbank (SFTBY) is reportedly planning to announce a massive $100 billion investment in the U.S. Current reports claim this investment will be announced after company CEO Masayoshi Son visits with President-elect Donald Trump today. The two are set to meet at Mar-a-Lago with Trump scheduled to make remarks at 11:00 a.m. ET.
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In addition to the $100 billion investment, there are also expectations for a deal to be announced between the two. That includes a push from Softbank to expand artificial intelligence (AI) in the U.S. The CEO reportedly expects this will create 100,000 jobs in the country in fields related to AI and its infrastructure.
What This Means for SFTBY Stock
Today’s news will mark another step forward for Softbank’s plans to capture the AI market. Son has been pushing for its expansion into the space, which includes investments in Microsoft (MSFT)-backed OpenAI, as well as buying chip startup Graphcore. Softbank also owns a 90% stake in semiconductor intellectual property (IP) licensing company Arm (ARM).
Shares of SFTBY stock are getting a slight boost alongside today’s news. The company’s stock has performed well in 2024, with shares up 39.6% year-to-date and 46.03% over the last 12 months. The stock might see larger gains after Trump’s remarks this morning.
Is SFTBY Stock a Buy, Sell, or Hold?
Turning to Wall Street, there is no analysts’ consensus rating or average price target for Softbank. Instead, investors will want to consider the company’s recent earnings performance.
The rise of SFTBY stock throughout 2024 came alongside strong earnings reports. Softbank beat out EPS estimates in three of the four previous quarters. This majorly assisted its 2024 rebound after lackluster results in 2023 weighed on the shares. If the company can keep this momentum going, it might bring with it an upside for shareholders in 2025.
