SoftBank reports quarterly net loss due to declining investment values

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SoftBank reports quarterly net loss due to declining investment values
Credit: © Reuters.

Japanese conglomerate SoftBank (TYO: 9984 ) Group Corp. reported a quarterly net loss of 789 billion yen ($6.8 billion) Today, with diluted losses per share at 639.90 yen ($5.51), largely attributed to declining investment values, including that of Alibaba (NYSE: BABA ) Group. Despite a slight revenue increase to 1.669 trillion yen ($14.4 billion), SoftBank's flagship Vision Fund registered a loss of 570.2 billion yen ($4.9 billion) and its carrying value dropped to 11.082 trillion yen ($95.6 billion).

On the same day, SoftBank's subsidiary, Arm Holdings (NASDAQ: ARM ), debuted on the Nasdaq, raising about $5.1 billion in proceeds. However, Arm reported losses and lower than expected revenue and earnings for the September quarter, resulting in no recorded gain from its initial public offering (IPO).

Yesterday, WeWork Inc., a company where SoftBank was a significant investor, filed for Chapter-11 bankruptcy. The co-working space provider, which once boasted a peak valuation of $47 billion, has faced numerous challenges including a failed IPO and the removal of founder Adam Neumann.

Despite these setbacks and the company's current financial predicament, SoftBank founder Masayoshi Son remains confident about capitalizing on an anticipated boom in artificial intelligence (AI).

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