Japanese technology conglomerate and Arm Holdings PLC (NASDAQ:ARM) owner SoftBank’s first-quarter earnings call comes amid an intensely volatile time for both tech stocks and the Tokyo Stock Exchange.
SoftBank’s share price went into freefall on Monday and while there were signs of recovery on Monday, the company’s valuation remains more than 20% lower week on week.
Putting aside this short-term volatility, investors will be more interested in the shareholder returns situation.
Famed activist investor Elliott Advisors has built a $2 billion stake in SoftBank with the purpose of pushing for a $15 billion share buyback package, Reuters reported in June.
SoftBank is not lacking for cash (more than US$42 billion at the 2023 year end), especially since the blockbuster Arm IPO last September, but the group is still contending with investment losses at its flagship softBank Vision Fund.
It is not the first time Elliott has built an activist stake in SoftBank- in 2020 the firm amassed a $2.5 billion stake, also in order to push for buybacks.
Back then, SoftBank responded with a $20 billion package. Investors will find out on Wednesday, 7 August if chief executive Masayoshi Son intends to play ball once again.