SoftBank Reports Loss in Third Quarter, Citing Vision Fund Investments
Japanese technology giant SoftBank Group Corp. reported a significant loss for the third quarter of its fiscal year, largely attributed to its Vision Fund investments. The company experienced a 369.2 billion yen ($2.4 billion) loss, despite a 3% increase in quarterly sales compared to the previous year.
This news comes shortly after SoftBank founder and CEO Masayoshi Son's high-profile appearance with President Donald Trump in Washington, where they announced a potential $500 billion investment in an artificial intelligence project called Stargate. Son has consistently emphasized the company's commitment to the future of AI.
SoftBank's investment strategy focuses on companies with long-term potential, including unlisted startups. This approach often leads to significant fluctuations in the company's financial performance. For the nine months of the fiscal year ending in December, SoftBank recorded a profit of 636 billion yen ($4 billion), reversing a loss of 459 billion yen from the previous year.
Investment gains were observed in holdings such as Chinese e-commerce giant Alibaba, South Korean retailer Coupang, mobility service provider DiDi Global, and Singaporean technology company Grab Holdings. Additionally, improved sales were reported in the British semiconductor company Arm's business. However, some of the earlier investment gains were offset by losses in the latest quarter. SoftBank does not issue annual forecasts.