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Home / Business / SoftBank Group shares move after Uber's rough first trading day

SoftBank Group shares move after Uber's rough first trading day



The SoftBank Group's founder, chairman and chief executive Masayoshi Son announces its group earnings performance briefing on May 9, 2019 Tokyo, Japan, for the financial year ended March 31, 2019.

Alessandro Di Ciommo | NurPhoto | Getty Images

Shares in Japanese conglomerate SoftBank Group came under pressure on Monday's trading session in Tokyo after the major losses on Uber's debut day on Friday.

On the Tokyo market last night, shares of SoftBank Group were down at 3.25%.

"It's a little difficult to be sure, but I think Uber's results are probably the biggest driver of Softbank's fall," said Dan Baker, analyst at Morningstar, CNBC in a Monday email. SoftBank Group, through its landmark vision fund, is a major investor in Uber.

"SoftBank is a long walk through Vision Fund and the results from both Uber and Lyft since listing may have lowered investors' expectations of what SoftBank's investment in space is worth," Baker said.

This analysis was echoed by other experts at the company.

"Someone who has bought the shares, looks at Uber IPO as a catalyst, may have been sellers," said Atul Goyal, CEO of Jefferies. The analyst added that the ongoing concerns about the US China tariff may have contributed to the situation. to "softness" of the stock.

In its IPO day on Wall Street last Friday, the shares in Uber went down over 7%, ending below $ 42 per share with a market value of $ 69.7 billion. Also over 7%.

Uber is now the second-running company to hit the US public market after Lyft's debut in March, both companies have been heavily investigated to continue to make huge losses, but many investors are also fascinated by the entrance to The sector for public exchange.

An investor resembled the relationship between SoftBank and Uber to that of Lyft and its Japanese baker, Rakuten.

"Rakuten became almost a semi-proxy in Asia … for Lift … price movements in the United States, "Andrew Jackson, head of Japanese stocks at Soochow CSSD Capital Markets (Asia), told CNBC's" Street Signs "last Friday before Uber's debut on the New York Stock Exchange.

Shares in Rakuten fell 2.36% on Monday.

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1; CNBC's Lauren Feiner contributed to this report.


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