The publication of a quarterly report, the data of which exceeded analysts’ expectations, allowed the British developer of processor architectures Arm to end yesterday’s trading session in the United States with a 48% increase in stock prices. As a result, the company’s capitalization exceeded $116 billion, and investor optimism also helped parent corporation SoftBank record a 15.29% increase in the stock price.
As explained CNBC, which owns more than 90% of Arm shares, the Japanese corporation SoftBank has nominally increased the value of its assets only due to the increase in the price of the former by $34 billion, although for now it cannot sell them due to restrictions under the terms of the IPO that took place in the fall. Only in March will the restrictions be lifted, and then SoftBank will have the opportunity to make money by selling Arm shares. Exactly two years have passed since NVIDIA’s deal to buy Arm for $40 billion fell apart. Considering that the latter’s capitalization now exceeds $116 billion, we can talk about a profitable decision for SoftBank to enter the American stock exchange with Arm shares after the failure to sell these assets NVIDIA.
Investors are showing high optimism about the future prospects for Arm’s business development, since the market value of the company’s shares is almost 90 times higher than the expected specific income per share. For NVIDIA this gap is much smaller, it does not exceed 33 times, but shares of this company have grown in price more than three times over the past year. Against this background, AMD can boast a multiplier of 46, occupying the “golden mean”.
SoftBank Corporation also reported better than expected yesterday, and its shares initially rose in price by 11.06%, adding a few more percent this morning. At the end of the last quarter, SoftBank made a profit of $6.36 billion for the first time in four quarters, exceeding analysts’ expectations by almost five times. If in the last fiscal year the Vision Fund investment fund brought SoftBank only losses, then in the last quarter it provided an increase in the value of assets in the amount of more than $4 billion.