Japanese conglomerate SoftBank is experiencing a hard week in stock exchange this week. It is the company’s worst week in the last three months.
After the first week of August, the Japanese company stock is keeping on the downtrend for the whole week. It started Friday morning with a 1.5% down. And it has been going on since last Monday.
In total, SoftBank stock dive down to almost 7% this week. In addition, it has also hit the lowest price since January this year.
SoftBank stock down, who the one to blame exactly?
Indeed, SoftBank has been making some of the most questionable investments this year. It seemed to be obsessed with investing in money bleeding ride-hailing unicorns.
Among the portfolios in its Vision Fund, most of them are ride-hailing companies. Including Uber, Grab, and Didi Chuxing. All of them are still far from profit. Worse, Uber has been diving down to 25% since its public offering earlier this year.
The Vision Fund has been investing in the transportation and logistics companies for around $28.3 billion as of June 30. But Bloomberg reported that an unknown source stated that the company is reviewing the investment over these areas.
In the same article, the informer said that SoftBank Vision Fund is planning on to take a writedown of more than $5 billion. The number can be up to $7 billion, but the conglomerate is yet to fixate the exact number.
The writedown is to reflect a plunge in the value of both WeWork and Uber and other biggest holdings of SoftBank. The source stated that SoftBank will announce the writedown along with the company’s second-quarter earnings announcement on November 6.
SoftBank’s 13% stake on Uber has been decreasing from June 30 to September 30. The value went down to $3.5 billion according to Bloomberg data.
Meanwhile, SoftBank has previously planned on investing in Grab Indonesia months ago.