Softbank owns 90% of ARM yet, it's 6/10 of ARM total market cap. Would it not make sense to buy SoftBank (SFTBY) instead of ARM? That's a 40%+ discount.
Why do people buy ARM over SoftBank?
byu/Legitimate_Risk_1079 inwallstreetbets
Posted by Legitimate_Risk_1079
31 Comments
Because SoftBank doesn’t JUST own 90% of ARM. Maybe you think the rest of their portfolio is shit
Should your girlfriend date your dad instead of dating you?
Ones a fund and one makes CPUs
You could have stopped the question at “Why do people buy ARM?”
Currently has a 466 PE
Lol
Softbank is cheap, but their management history scares investors away, an oppertunity, bad track record and pr I think.
Wework
They won’t be able to sell all their shares at the current price. They will take a major haircut if they try. Seems like a arbitrage opportunity but it’s also too simple, meaning that there’s some sort of catch.
The real question is why buy ARM 470 p/e
My pp is not soft
I remember reading an article by Matt Levine pre-pandemic about how odd it was that Softbank was trading at such a huge discount to the companies it owns. It’s interesting this is still a thing more than five years later.
Cuz there’s no options
Because I like it hard not soft. Hardbank
Obviously, it means that Softbank’s other assets have a net negative value.
Cause Masayoshi Son makes WSB look like Einstein.
Because they don’t have options.
What kind of regarded question is this.
A better question is why do people buy ARK.
It’s sorta like nvda vs spy
Maybe because SoftBank tends to make dumb investments. They’re gamblers. Let’s not forget how much money they gave WeWork.
Their other assets are other people’s liabilities.
Not only is it a ADR, SoftBank makes some really questionable choices sometimes
Arm can issue new stock and dilute SoftBank later if needed.
Didn’t SoftBank give like tens of billions to that shitty office rental company because they sorta pretended they were a tech company?…
Let’s see your list of everything else that Softbank owns and the percentage of each company then we’ll make our decision.
Good question
SoftBank also owns a ton of wework, and coupang, and a bunch of other failed companies.
They used to own Sprint.
Because SoftBank has massive risk involved in other terrible investments, like WeWork.
ARM is better pick.Soft owns a tons of shit stock and I think ARM is only 1 good stock they own
Ask NVIDIA why they tried to buy ARM when they should’ve just bought Softbank?
> Would it not make sense to buy SoftBank (SFTBY) instead of ARM?
**who wins — the smart guy or the crazy guy?**