SoftBank Shares Face Steep Sell-Off to Begin the Year

SoftBank JP3436100006

SoftBank Group Corp. shares have encountered significant selling pressure in January, marking a sharp reversal from their strong performance in 2025. The stock has declined approximately 15% since the start of the year, establishing a new monthly low amid heightened market volatility. This correction follows closely on the heels of a stock split executed by the company.

Trading on the Tokyo exchange, the shares closed at 4,010 yen on January 16, setting the current low for the month. This stands in contrast to the peak of 4,735 yen reached on January 6. The period since that high has been characterized by profit-taking and a broad reduction of risk exposure among investors.

Key trading metrics for January illustrate the move:
* Monthly High: 4,735 yen (January 6)
* Monthly Low: 4,010 yen (January 16)
* Decline from Peak: ~15%
* Cumulative Trading Volume: 464.4 million shares (since month start)

A 4-for-1 stock split took effect on January 1, a move designed to increase share count and lower the nominal price per share to improve accessibility for retail investors. However, the anticipated positive impact on demand has been muted by rising uncertainty across global financial markets.

The weakness is also evident in the company's U.S.-traded American Depositary Receipts (OTC: SFTBY). These closed at $12.55 on January 16, a daily loss of 1.10% and a notable drop from their level near $14.80 at the beginning of the year.

Aggressive AI Strategy Continues Unabated

Despite the share price retreat, SoftBank is continuing to advance its artificial intelligence strategy at a rapid pace. The closing months of 2025 saw several major strategic moves:
* December 31, 2025: An additional $22.5 billion investment in OpenAI was finalized.
* December 29, 2025: The acquisition of DigitalBridge for $4 billion was announced, aimed at scaling AI infrastructure.
* November 26, 2025: The takeover of Ampere Computing Holdings LLC was completed.
* November 5, 2025: The launch of the "SB OAI Japan" joint venture with OpenAI.

These steps are part of a concerted effort to cement SoftBank's central position in AI and supporting infrastructure. Analyst coverage reflects this focus; BTIG initiated coverage on January 6, 2026, with a Buy rating and a price target of 5,400 yen, citing the company's unique positioning in AI and robotics.

Financial Strength and Forthcoming Results

Investor attention is now turning to the upcoming third-quarter results for the fiscal year 2025, scheduled for release on February 12. This report is expected to provide fresh details on the performance of the Vision Fund and the recent wave of AI investments.

The company's most recent published figures showed substantial growth. For the second quarter of FY2025 (released in November 2025), SoftBank reported a net profit of $16.6 billion, more than double the year-earlier result. This surge was primarily driven by valuation gains on its OpenAI stake. During the same period, the Vision Fund recorded investment gains of 3.5 trillion yen.

Technical Outlook Shows Deterioration

From a chart analysis perspective, the equity is in a clear short-term downtrend. The price has broken below key support levels established in early January and is currently trading at its monthly low. Market participants are watching to see if stabilization emerges ahead of the imminent quarterly earnings report.

On a split-adjusted basis, the 52-week range for the Tokyo-listed shares spans from 1,432.5 yen to 6,923.8 yen. This wide band highlights the extreme volatility that has accompanied the stock throughout its ongoing AI investment phase. The upcoming quarterly report in mid-February will provide a concrete indication of how financial markets are assessing the success of this ambitious strategic direction.