SoftBank posts $6.2 billion quarterly loss as WeWork collapse, tech slump drag bottom line

Finance

SoftBank Founder Masayoshi Son is pictured here in 2019 during an earnings presentation.
Tomohiro Ohsumi | Getty Images

SoftBank posted an investment gain on its Vision Fund in the fiscal second quarter but booked another quarterly loss.

SoftBank’s flagship tech investment arm had a rough time in the fiscal year that ended in March this year, posting a record loss of around $32 billion. A slump in tech stock prices and the souring of some of SoftBank’s bets in China were to blame.

In the June quarter, the Vision Fund posted its first investment gain in five consecutive quarters, signalling early signs of growth again. This has coincided with recoveries in the prices of technology stocks.

Last year, SoftBank’s high-profile founder Masayoshi Son noted the firm would go into “defense” mode, slowing the pace of its investment and being more cautious. In June, Son flagged a shift into “offense” mode, touting his excitement around the potential of artificial intelligence technology.

Chip designer Arm went public in the U.S during SoftBank’s fiscal second quarter. The company acquired Arm in 2016 for around $32 billion at the time. The initial public offering of Arm valued the company at over $50 billion.

Articles You May Like

Top 10 S&P 500 stock winners since Election Day
UK CPI set to rise above BoE target in October, core inflation to remain high
Gold price advances to near two-week high, eyes $2,700 on geopolitical tensions
Not to jinx it, but Russell 2000 on pace for a record close today
USD/CAD attracts some sellers below 1.3950 on softer US Dollar

Leave a Reply

Your email address will not be published. Required fields are marked *