SoftBank posts a $21.6 billion quarterly loss on its Vision Fund, one of the highest in its history
Summary
SoftBanks Vision Fund, the brainchild of the companys founder Masayoshi Son, has faced a number of headwinds including a slump in technology stocks as a result of rising interest rates, a tough China market and geopolitics. SoftBank posted one of its biggest losses at its Vision Fund investment unit for its fiscal first quarter, as technology stocks continue to get hammered amid rising interest rates. SoftBanks Vision Fund, which began in 2017 and invests in technology companies, has been hit by a slump in high-growth stocks as a result of rampant inflation that has led the U.S. Federal Reserve and other central banks to raise interest rates. SoftBank said it saw a decline in the share prices of a wide range of its portfolio companies, which was "mainly caused by the global downward trend in share prices due to growing concerns over economic recession driven by inflation and rising interest rates." Shares of companies ranging from South Korean e-commerce firm Coupang to DoorDash in the United States were hit hard in the second quarter of the year.