How to Buy SoftBank Stock
Last Updated: January 11, 2023
SoftBank has grown from a small software distributor to the second-largest company in Japan, operating the world’s biggest tech investment fund. Its market cap stands at a whopping $64 billion.
Are you already looking for how to buy SoftBank stock? We’ll tell you everything you need to know.
About the Company
SoftBank was founded by 24-year-old entrepreneur Masayoshi Son in 1981. He started the company as a small software distributor. Then in 1982, Son entered the publishing business, launching two magazines – Oh! PC for NEC computers and Oh! MZ for Sharp products. In 1996, SoftBank signed a deal with Yahoo to bring search engines to Japan. This was just one of the many deals that have turned the Japanese conglomerate into a global powerhouse.
In less than 15 years, SoftBank has grown into one of the most influential players in the tech industry. And currently, SoftBank Group Corp. is a strategic holding company operating in six segments:
- Investment Business of Holding Companies: Investment activities by SoftBank Group Corp. and its subsidiaries
- SoftBank: Provision of telecommunication services
- Vision Funds: Technology-focused Investment activities
- Arm: Microchip and software design and distribution
- Latin American Funds: Investment activities by SoftBank in Latin America
- Other: Smartphone payment and alternative investment management business
SoftBank went public in 1994 on the Tokyo Stock Exchange (TSE) and gathered an initial valuation of $3 billion. On December 19, 2018, the company listed its telecoms unit, SoftBank Corp, on the Tokyo Stock Exchange Prime Market. The shares were priced at $13.22, making the deal worth $21.16 billion.
When searching for SoftBank stocks, you will come across different stock symbols. The regular SoftBank shares trade on the TSE under the 9984 ticker. On the over-the-counter (OTC) market, the company is trading under the SFTBY symbol (a sponsored American depositary receipt), and SFTBF (an unsponsored ADR). The latter is the equivalent of the TSE-traded shares.
SoftBank Group subsidiaries
The company has several key portfolio companies which are engaged in investment and financial activities, such as SoftBank Group Capital Limited and SoftBank Group Japan Corporation. These companies hold approximately 120 portfolio companies, including Alibaba, T-Mobile, and The We Company. The most valuable is Alibaba Group Holding Ltd.
Should you Buy SoftBank Stock?
As of May 2022, SoftBank has a market cap of $64.08 billion. What’s more, investors who stay with SoftBank through all the ups and downs are sitting on a 70% gain over the past five years. So let’s see if this stock still has room to run.
SoftBank has reported a net loss of 1.7 trillion yen ($13 billion) for the fiscal year ended March 31, 2022. The company’s listed portfolio companies were hit hard by falling tech valuations across the globe.
In November 2021, SoftBank Group founder Masayoshi Son announced the company would buy back as much as 1 trillion yen ($8.8 billion) of its stock after a decline in the value of its portfolio companies led to a record loss in its Vision Fund investment unit. The move follows a 2.5 trillion yen ($19.5 billion) buyback program in 2020, which helped triple SoftBank’s valuation from its low during the pandemic.
SoftBank shares performance
The company’s shares have dropped more than 40% from their peak in March 2021. SoftBank wanted to make its stock stronger, but it has struggled without buybacks. The founder says that the company’s shares now trade at a 52% discount to the value of its holding.
In recent years, the Japanese company with investments across the technology, energy, and financial sectors has been a volatile stock. SFTBY vs SFTBF’s 52-week range is $16.78 – $39.66 and $34.47 – $79.19, respectively.
Impact of the pandemic
One of the few industries that were not significantly affected by the pandemic is the telecommunication industry. Something that was temporarily affected was delayed phone upgrades but has not made a huge impact on the overall industry outlook.
Now let’s see more about the forecast of the SoftBank Corp. and if there are any warning signs.
SoftBank stock forecast
Fifteen analysts have a median target price for SFTBY of $30.92 with a high estimate of $42.90 and a low estimate of $20.34. The median estimate represents a +55.91% increase from the last price of $19.83. The current consensus recommendation is to buy the stock. Analysts of the TSE-listed shares echo the same sentiment, while there’s no forecast data available for the SFTBF stock.
Before deciding to buy SoftBank shares, find out whether the stock fits your portfolio. Evaluate the risk and consider whether you are prepared to commit to long-term investment.
Are you aware of your financial situation? How much can you afford to invest in SoftBank stock? You must be informed that stocks are extremely volatile, and the returns don’t come overnight.
How to Buy SoftBank Stock
Before buying SoftBank stock, you must select a broker. Finding an American brokerage that carries both SFTBY and SFTBF may be a hit and miss.
An online broker is a mediator between a buyer and seller of a financial instrument. They provide the purchase or sale in return for a commission or fee.
For example, TD Ameritrade has both SFTBY and SFTBF, and they are available for trade, but the Robinhood platform only has SFTBY. So make sure that you have the correct SoftBank ticker symbol entered.
Can anyone open a trading account?
A brokerage account is an investment account used to buy or sell stocks, mutual funds, and ETFs. Many online brokers allow opening a brokerage account online, and you don’t need a lot of money to do so.
There is no limit on the number of accounts you can have or the amount of money you can deposit. Opening an account is practically simple, and in most states, you’ll have to be 18 before opening one. You need to prove your identity and address along with a passport size photograph.
Working with a financial advisor is a great option for everyone that wants to have their finances organized. Some financial advisors provide more than investment advice. They can help you with retirement plans, debt repayment, and insurance for you, your home, and your family.
Every investment carries a risk, so you have to be aware of the pros and cons when investing in SoftBank or any other stock. Hopefully, this article has covered everything you need to know about the SoftBank corporation, its history, stock performance, and how to buy the company’s stocks.
SoftBank is a Japanese conglomerate operating the world’s biggest tech investment fund. The company has a hand in several areas such as telecommunication, e-commerce, finance, broadband, marketing, and more.
SoftBank owns many companies such as SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SB Group US, Inc., Skywalk Finance GK, Alibaba Group Holding Limited, etc.
Yes, SoftBank is the second-largest publicly traded company in Japan after Toyota. The company is listed on the Tokyo Stock Exchange under the 9984 ticker symbol. The shares can also be traded on the over-the-counter market, where they can be found under the SFTBF and SFTBY symbols.
SFTBY is the unsponsored American depositary receipt (ADR) of SoftBank shares, meaning the bank issues without the company’s compliance. On the other hand, SFTBF is the sponsored ADR where SoftBank retains control of the shares. SFTBY is equivalent to 1/2 of the Softbank regular stocks.
Both SFTBF and SFTBY have the same market capitalization, similar P/E ratios, and year-to-date growth. Essentially, it’s down to personal preference and the broker’s support of the stock.
Technical analysis shows SoftBank is a good long-term investment. However, investors’ short-term sentiment is rather bearish. That being said, if you’re interested in the Japanese conglomerate, the right time to learn how to buy SoftBank stock is now.