Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Softbank books record loss as sell-off in tech stocks hits Vision Funds unit

Published 08/08/2022, 11:21
Updated 08/08/2022, 12:11
© Reuters.  Softbank books record loss as sell-off in tech stocks hits Vision Funds unit

© Reuters. Softbank books record loss as sell-off in tech stocks hits Vision Funds unit

SoftBank Group reported its biggest ever quarterly net loss of $23bln as a flagship fund was hit by the sell-off in tech stocks.

The Japanese multinational conglomerate holding company said its Softbank Vision Funds posted an investment loss of ¥2,919.1 billion (US$21.61bn) for the three months to 30 June – pushing the group’s pre-tax loss to US$24.39bn.

The world’s largest technology fund has been hit by a slump in the valuation of tech stocks.

SoftBank said the Vision Fund losses included 293.4 billion yen for Coupang, 235.9 billion yen for SenseTime Group Ltd. and 220.7 billion yen for DoorDash Inc (NYSE:DASH), according to a report in Bloomberg.

They also mentioned drops at AutoStore Holdings and WeWork Inc (NYSE:WE).

Softbank has attempted to manage its finances defensively by raising US$10.49bn from the sale of pre-paid forward contracts using Alibaba (NYSE:BABA) shares, and selling 21.2 million T-Mobile shares for US$2.4bn.

The Japan-based conglomerate has also carried out a share buyback, buying ¥293.5 billion (US$2.17bn) of shares in the first quarter, bringing its total repurchase to ¥638.1 billion (US$4.72bn) as of June 30.

Softbank is authorised to buy up to ¥1 trillion (US$7.4bn) of shares under the ongoing share repurchase programme.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Haha, Softbank fully deserve a loss after all their anti-chinese rhetoric. We need less confrontation to create a new worldwide boom. Everyone included.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.