Overview
SoftBank Group's share price fell 8.9% after the company released its results for the December quarter, which highlighted that ARM and OpenAI now constitute 65% of the group's net asset value (NAV). The disclosure prompted a sharp market reaction despite only a modest change in reported NAV over the period described.
NAV movement and portfolio composition
The group's NAV decreased by 1% between the end of September and February 11. While individual holdings within the portfolio showed varying price moves over the quarter, these shifts largely balanced out at the aggregate level, leaving the overall NAV relatively stable in that time frame.
Within the concentrated top holdings, a decline in ARM's share price was largely counterbalanced by increased investment in OpenAI and valuation gains attributable to that OpenAI stake. Apart from these developments, the company reported no material changes among other components of its investment portfolio.
NAV discount and recent context
The NAV discount reported for SoftBank stands at 17%. That figure compares with a 20% discount recorded at the end of September and a six-month average discount of 26%. The company did not report additional material alterations to other parts of the portfolio in the period covered.
Market reaction and implications
Market pricing moved sharply downward despite the small net change in NAV, reflecting investor sensitivity to the concentration of NAV in two holdings. The company’s concentration in ARM and OpenAI now represents a majority share of its reported asset value, which is a central fact in the quarter's disclosure.
Conclusion
The quarterly report underscores the growing weighting of ARM and OpenAI in SoftBank's reported net asset value and shows a slight NAV decline over the period to February 11. Outside of the additional OpenAI investment and related valuation gains and a fall in ARM’s share price, SoftBank noted no material shifts across the remainder of its portfolio. The NAV discount sits at 17%, down from 20% at the end of September and below the six-month average of 26%.