softbank: SoftBank jumps 10%, shaking off record loss

Tokyo: shares SoftBank Group Corp gained 10% in morning trading in Tokyo on Friday as the market shrugged off a record loss, which had been widely reported, in its Vision Fund unit.

“Alibaba remains the anchor resource. As long as that company does not deteriorate, a trading range for Soft bank between 4,500 and 5,500 yen is probably where it will be, “he said

Research analyst Kirk Booty.

The rebound followed an end-of-day rally in US equities overnight, with the S&P 500 e Nasdaq composite roughly flat closure. Tech stocks, including flea market app operator Mercari and payment e-commerce company Rakuten, also surged in Tokyo.

The rebound came when the founder and chief executive officer (CEO) of SoftBank Masayoshi son on Thursday
committed to downsizing investments assets and preserving liquidity as the market downturn hammered its technology portfolio.

“When it rains, you open an umbrella,” the billionaire said at a news conference, pointing to SoftBank’s cash position of $ 23 billion and loan-to-value ratio of 20.4%, which compares net debt to asset value. of equity investments.

Son’s downsizing, which follows a drop in IPO activity that had allowed SoftBank to launder funds into new investments, also came when he stressed his belief that valuations will continue to rise over the longer term.

Discover the stories of your interest

“Several investors have observed that (Softbank) making aggressive investments in bull markets and then getting defensive during bear markets essentially makes it a momentum investor,” Jefferies analyst Atul Goyal wrote in a client note.

Stay on top technology Other startup news what matters. subscribe to our daily newsletter for the latest and greatest tech news, delivered straight to your inbox.