Tokyo, Japan – SoftBank shares surged more than 8% in early trade after chipmaker Arm posted results that surpassed expectations. This positive news had a significant impact on SoftBank’s stake in Arm, which jumped by almost $16 billion after Arm’s earnings report.
Arm, which SoftBank took public in September, saw its shares skyrocket by as much as 41% after reporting revenue and earnings that exceeded analysts’ estimates. The chip designer also provided a strong outlook for the coming quarter. With SoftBank still owning about 930 million shares of Arm, the gains from Arm’s performance managed to exceed the losses suffered by investing in WeWork, which went bankrupt in November.
This surge in SoftBank’s shares is a promising sign for the investment holding company following recent losses. The positive performance of Arm, in which SoftBank holds a majority stake, could help offset some of the losses from other ventures.
In other news, the S&P 500 reached a session high of 4,999.89, putting it within striking distance of the historic 5,000 threshold. If the large-cap benchmark hits 5,000, it will have taken almost three years to go the last 1,000 points.
Meanwhile, PayPal shares dropped more than 5% in extended trading after the payments company provided guidance for the full year and first quarter that fell just short of expectations. Despite beating estimates for fourth-quarter results, the company anticipates full-year earnings of $5.10 per share, below the $5.48 analysts expected.
Overall, the market is experiencing a mixture of positive and negative movements, with investors closely monitoring the performance of key players such as SoftBank, Arm, the S&P 500, and PayPal.