SoftBank Posts $21.6 Billion Loss As Technology Stocks Drop

Japan’s %SoftBank (TYO:9984) posted a record $21.68 billion U.S. quarterly loss as technology stocks in its Vision Fund continue to get hammered amid a global market downturn.

SoftBank’s Vision Fund, which started in 2017 and invests exclusively in technology stocks, has been hurt by a slump in high-growth securities as the U.S. Federal Reserve and other central banks raise interest rates to lower inflation.

SoftBank said it saw declines in the share prices of a wide range of companies held in its portfolio during the second quarter, including e-commerce firm Coupang (CPNG) and delivery company %DoorDash ($DASH).

SoftBank said the share prices of private companies in its portfolio also fell in the April through June period.

The Japanese firm has sold stakes in companies to raise money, announcing that it sold its stakes in ride-hailing firm %Uber ($UBER) and online real estate company %Opendoor ($OPEN).

SoftBank said it raised $5.6 billion U.S. from those sales.

The company said that, given the heavy losses at the Vision Fund, headcount may need to be reduced in coming months as it undertakes aggressive cost cutting measures.

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