The jump in SoftBank shares reflects growing investor confidence that steady telecom cash flows and Arm’s accelerating AI-driven shift toward data centers can underpin the group’s long-term strategy.

Shares of SoftBank Group Corp surged more than 10% after its telecom subsidiary, SoftBank Corp, raised its full-year profit outlook, while renewed optimism around Arm Holdings reinforced bullish sentiment toward the group’s exposure to artificial intelligence.

The immediate catalyst was the upgraded guidance from SoftBank Corp, which reported resilient results for the first nine months of fiscal 2025. Revenue rose 8% year on year to a record 5.2 trillion yen for the period, while operating income also climbed 8% to 884 billion yen. On the back of that performance, the telecom operator lifted its full-year revenue forecast to 6.95 trillion yen from 6.7 trillion yen and increased its operating income target to 1.02 trillion yen, pointing to confidence that momentum will be sustained into the final quarter.

Management stressed that the numbers reflected steady execution rather than aggressive growth. In the consumer segment, revenue rose 3%, and segment income increased 6%, even as smartphone subscribers declined by about 100,000 in the third quarter. The drop followed tighter customer-acquisition policies, as the company deliberately pulled back on promotions and incentives that boost subscriber counts but weigh on profitability. The strategy signals a shift toward maximizing lifetime customer value and margins in a mature Japanese mobile market where growth is increasingly incremental.

For SoftBank Group investors, the importance of the telecom arm goes beyond its standalone performance. The unit provides predictable cash flows that help stabilize the broader group, which has been rebuilding credibility after years marked by volatile returns from technology investments. Stronger guidance from SoftBank Corp, therefore, reassures the market that the group has a firmer earnings base as it continues to pursue high-growth opportunities elsewhere.

That context helps explain why gains in Arm Holdings amplified the rally in SoftBank shares. SoftBank remains Arm’s largest shareholder, making the British chip designer central to the group’s valuation and its artificial intelligence narrative. Recent strength in Arm’s stock has revived confidence that the company can play a structural role in global AI infrastructure rather than remain tethered to the slower-growing smartphone market.

Arm’s latest results and commentary have reinforced that shift. Chief executive Rene Haas said data-center royalty revenue has grown more than 100% year on year and is expected to become Arm’s largest business within a few years, overtaking mobile. That transition is significant, as data-center chips typically command higher royalties and are directly linked to sustained investment by cloud computing giants racing to build AI capacity.

Arm is also targeting a larger footprint among hyperscalers, aiming to supply half of the central processing units used by the world’s biggest cloud companies by year-end. If realized, that would deepen Arm’s integration into AI workloads and make its revenue base more resilient to consumer demand swings. While the company missed Wall Street expectations on licensing revenue, it still posted record quarterly revenue of $1.242 billion in the final three months of 2025, driven by strong AI demand. That figure exceeded LSEG SmartEstimates, which weights forecasts from analysts with stronger track records, lending further credibility to the growth story.

Market participants say the combination of upgraded telecom guidance and Arm’s AI momentum has sharpened the investment case for SoftBank Group. Andrew Jackson, head of Japan equity strategy at Ortus Advisors, noted that Arm’s upside is increasingly tied to artificial intelligence rather than smartphones, a shift that aligns closely with SoftBank founder Masayoshi Son’s long-held vision of positioning the group at the centre of the AI ecosystem.

The rally also comes at a time when investors are reassessing how to value conglomerates with mixed profiles of stable cash generators and high-growth technology assets. In SoftBank’s case, the telecom business offers ballast, while Arm provides leverage to global AI spending trends. Together, they have helped reframe the group not just as a speculative technology investor, but as a hybrid with both defensive and growth characteristics.

While questions remain around valuation sensitivity to AI cycles and the execution risks inherent in semiconductor markets, the latest results suggest that SoftBank’s core pieces are moving in a more synchronized direction.

SpaceX is signaling a strategic shift away from headline lunar milestones toward building permanent, large-scale infrastructure on the moon.

Elon Musk has signaled a reframing of SpaceX’s role in the renewed lunar race, saying the company is willing to lose the symbolism of being first to the moon if it helps secure what he now calls the more important prize: establishing a permanent, self-sustaining human settlement on the lunar surface.

In a post on X on Monday, Musk said he would congratulate Jeff Bezos’ Blue Origin if it lands on the moon before SpaceX. The remark was notable not for its sportsmanship, but for what it revealed about SpaceX’s evolving priorities as competition intensifies among private space companies.

“What really matters for the future is being able to land millions of tons of equipment and people to build a self-growing city on the moon,” Musk wrote. “In this respect, perhaps we are more the tortoise than the hare for now.”

The comment came in response to a post by Bezos, who shared a black-and-white image of a tortoise earlier in the day. The imagery echoed the familiar tortoise-and-hare fable and was widely interpreted as a subtle message in the long-running rivalry between the two billionaires. Bezos has often positioned Blue Origin as methodical and patient, in contrast to SpaceX’s faster, more aggressive development style.

For years, Musk and Bezos have sparred over the future of human spaceflight, both publicly and behind the scenes. SpaceX has long been associated with Musk’s vision of colonizing Mars, while Blue Origin has consistently argued that the moon is humanity’s most logical next destination. Musk’s latest comments suggest that SpaceX’s own thinking has shifted closer to Bezos’ long-held position, at least in the near term.

Over the weekend, Musk confirmed that SpaceX has moved its primary focus to the moon, citing feasibility and timelines. In another post on X, he said a self-sustaining lunar city could potentially be achieved in under 10 years, while a comparable settlement on Mars would take more than two decades. He added that while Mars remains part of SpaceX’s long-term plan, the moon now offers a faster route to building an off-world civilization.

This represents a sharp turn from Musk’s earlier stance. As recently as January last year, he dismissed the moon outright, saying, “We’re going straight to Mars. The moon is a distraction.” The reversal underscores how SpaceX’s strategy continues to evolve as technical constraints, funding realities, and competitive pressures change.

Operationally, SpaceX remains deeply engaged in lunar planning. The Wall Street Journal reported last week that the company has told investors it is targeting March 2027 for an uncrewed lunar landing. That timeline places SpaceX squarely in competition with Blue Origin and other players, even as Musk downplays the importance of who arrives first.

Musk has also sought to clarify how the moon fits into SpaceX’s broader interplanetary roadmap. In a separate post on Sunday, he said SpaceX would continue launching missions directly from Earth to Mars where possible, rather than using the moon as a staging point. He cited limited fuel availability on the moon as a constraint, suggesting that lunar operations are being designed primarily for settlement and industry, not as a refueling hub for Mars missions.

Bezos, by contrast, has consistently framed the moon as a practical and strategic destination. He has argued that its proximity to Earth and relatively milder conditions make it better suited for sustained human and industrial activity. In 2019, he mocked the idea of living on Mars, saying spending a year on the summit of Mount Everest would be far more hospitable. During a Blue Origin presentation for its Blue Moon project, a slide on Mars was bluntly titled “FAR, FAR AWAY,” underlining his skepticism of Musk’s Mars-first rhetoric.

Even so, Blue Origin’s progress has been slower than its own early projections. The company previously said it aimed to reach the moon by 2023, a target it did not meet. Its deliberate pace has often been contrasted with SpaceX’s rapid launch cadence and willingness to iterate in public, even when failures occur.

Musk’s “tortoise” comment appears to acknowledge that SpaceX is now prioritizing depth over speed. Rather than focusing on a single landing, the company is framing success as the ability to deliver massive payloads repeatedly, build infrastructure, and sustain human presence over time. That approach aligns with SpaceX’s heavy investment in Starship, a fully reusable vehicle designed to move unprecedented amounts of cargo and people beyond Earth.

For the broader space industry, the exchange between Musk and Bezos highlights a deeper shift in the conversation. The emphasis is moving away from symbolic firsts toward questions of logistics, supply chains, and long-term viability. Landing on the moon may still capture headlines, but the company that demonstrates it can stay, build, and expand is likely to shape the next phase of lunar exploration.

Shares of Lyft tumbled 15% in extended trading on Tuesday after the U.S. ride-hailing company reported fourth-quarter results that fell short of expectations, signaling persistent challenges in growing its user base and maintaining profitability despite recent regulatory and operational changes.

The sharp decline underscores investor skepticism that near-term policy changes and pricing adjustments will be enough to offset slowing momentum in an increasingly competitive market.

Lyft reported revenue of $1.59 billion for Q4, up only 3% year over year and well below analysts’ consensus estimate of $1.76 billion. Gross bookings grew 19% year over year to $5.07 billion, in line with Wall Street expectations, reflecting moderate underlying demand for rides. Net income for the quarter came in at $2.76 billion, or $6.72 per share, though this figure was not directly comparable to prior periods due to one-off accounting adjustments.

The company’s guidance for adjusted EBITDA—a key measure of profitability—ranged between $120 million and $140 million for Q1 2026, slightly below the Street estimate of $139.8 million. The cautious outlook highlights the delicate balancing act Lyft faces between stimulating demand through lower prices and sustaining margins.

Lyft cited recent California legislation that reduced insurance costs for ride-hailing companies as a factor behind its decision to lower fares in the state. Management expects the move to boost demand over time, but emphasized that broad-based consumer adoption will likely materialize in the second half of the year.

“The pricing adjustments are intended to make rides more accessible and competitive, but the uplift will not be immediate,” Lyft said in its earnings release. “Back-half weighting of adoption reflects the time needed for behavioral shifts and seasonal demand patterns.”

Key operational metrics underscored the challenges Lyft faces in scaling ridership. Active riders totaled 29.2 million, falling short of the StreetAccount estimate of 29.5 million. Total rides for the quarter were 243.5 million, compared with a FactSet estimate of 256.6 million. While bookings grew year over year, the underperformance in active riders and total rides points to ongoing hurdles in attracting new users and maintaining engagement among existing customers.

Industry analysts note that Lyft faces stiff competition from Uber, which has a broader international footprint, diversified revenue streams including freight and delivery, and stronger pricing power in key U.S. markets. Coupled with the lingering impact of pandemic-era consumer behavior shifts, Lyft’s growth trajectory appears more constrained than some investors had anticipated.

Strategic Initiatives and Shareholder Returns

In an effort to bolster investor confidence, Lyft’s board approved up to $1 billion in additional share repurchases, supplementing prior buyback programs. While share buybacks can support the stock and signal management’s confidence in the business, they do not address underlying demand or profitability challenges, which the market viewed as the more pressing issues.

Lyft also continues to explore initiatives to diversify its revenue streams and enhance the customer experience, including subscription offerings and partnerships for shared mobility, although the financial impact of these programs is expected to materialize gradually.

The steep stock decline reflects broader market concerns about profitability pressure across the U.S. ride-hailing sector. Higher labor costs, regulatory uncertainties, and price-sensitive consumers continue to challenge operators like Lyft, which lacks the scale of Uber to absorb margin shocks. Investors are likely to scrutinize the first-half 2026 results closely for evidence that regulatory tailwinds and fare reductions translate into sustained ridership growth without materially eroding margins.

“Lyft’s results show that the industry is still navigating a transitional period where competitive pricing, regulatory changes, and rider behavior all intersect,” said Jessica Liu, senior mobility analyst at Evercore ISI. “Even with the back-half weighted recovery narrative, investors will want to see consistent traction in active riders and ride frequency before regaining confidence.”

Lyft’s ability to regain growth momentum depends on successfully converting lower fares into higher adoption, managing costs effectively, and differentiating itself in a crowded ride-hailing market. With key metrics underperforming expectations and guidance slightly below consensus, the company faces a delicate path to proving that its business model can generate sustainable growth and profitability while navigating regulatory and competitive pressures.

In short, while share buybacks and policy tailwinds offer some support, Lyft’s core challenge remains the same: turning moderate bookings growth into consistent, profitable expansion in a market where consumer behavior is still evolving.