(Bloomberg) – On Thursday, when his company booked a $ 3.8 billion gain from his stake in Uber Technologies Inc., Masayoshi Son told SoftBank Group Corp. that their time had finally come. Instead, they are still waiting.
The son has featured SoftBank Group from primarily a telecommunications operator to a technology investment firm, and his $ 100 billion Vision Fund has begun to show promise as a major contributor to revenue. SoftBank's stock had rallied nearly 60% this year before its revenues. But the slide over the last two days shows that SoftBank is now also vulnerable to the bad news from Son's investment portfolio, as well as the good.
Uber opened at $ 42 or 6.7% below the $ 45 IPO award. Shortly afterwards, it went to $ 41.06. While the company shortly repaid almost all its losses within the early afternoon, the withdrawal showed short-lived.
"Uber debut does not live up to expectations, and that is why some investors sell," said Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities Co. "It is too early to tell how sensitive SoftBank will be to Uber's price movements in the future. But even if they fall somewhat, it does not have a direct impact on Vision Fund's profits."
The Vision Fund and SoftBank's own Sub-Fund contributed 1.26 trillion ($ 11.5 billion) for the fiscal year ending March 31, or slightly more than half of the total. Investments in 29 companies showed an increase in fair value, while 12 reported a decline.
In addition to Uber, SoftBank reserved a valuation gain of $ 203.4 billion from its stake in Guardant Health Inc., announced in October, and a $ 154.2 billion gain on India's Oyo. It also recorded a 222.6 billion yen loss due to the Nvidia Corp.
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