SoftBank reports $13 bn loss amid tech sell-off, cuts startup funding

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New Delhi, May 12 | Japanese investment giant SoftBank on Thursday reported a huge net loss of 1.708 trillion yen ($13.14 billion) for the year ending March 31, saying that it would be forced to cut startup funding by more than half this year.

The conglomerate also reported its biggest-ever quarterly net loss, 2.1 trillion yen ($16.2 billion) for the January-March quarter, reports Nikkei Asia.

SoftBank also reported a historic $27 billion loss to its Vision Funds for the full year, owing to heavy losses in investments in tech companies like Coupang and Didi Global.

SoftBank invested $2.5 billion in the January-March quarter, considerably lower than $10.4 billion it spent in the previous quarter.

When it comes to startups, Softbank invested more than $46 billion in startups last fiscal year.

SoftBank CEO Masayoshi Son said that compared to last year, “the amount of new investments (in startups) will be half or could be as small as a quarter”.

The company’s shares tumbled 8 per cent on Thursday ahead of the results, its lowest in nearly two months.

“Other poor performers included Singaporean ride-hailing company Grab, US food delivery firm DoorDash and Indian payments group Paytm, which together lost close to $5 billion over the quarter, according to Redex Research analyst Kirk Boodry’s estimates,” reported the Financial Times.

“The investment environment remains challenging, dominated by fast-rising inflation, increasingly complex geopolitical risk and a global energy shock,” SoftBank said.

SoftBank’s $100 billion Vision Fund was launched in 2017 and is backed by Saudi Arabia and Abu Dhabi.

Source: IANS

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Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

The NIFTY 50 recouped the previous day’s losses and ended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day as it ended at 16266.15 levels. Bank nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 down by 5.94%.

48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.

Moreover, Nifty has been trading in a range of 15750-16410 levels throughout the week, crossing either side can direct further direction. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart which suggest a northward journey in Nifty. The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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