SoftBank posts unexpected $3.3bn loss; Vision Fund unit records profit
SoftBank's Vision Fund investment arm reported a gain of just over $1 billion in the June quarter, marking a return to profitability after five quarters. This gain is attributed to the increased valuations of high-growth tech companies that SoftBank favors. However, the parent company still reported a $3.3 billion loss for the third consecutive quarter.
Analysts expected the firm to post a small profit
SoftBank's overall loss has come as a surprise to many. According to a Reuters poll, analysts expected the Japanese investing giant to post a net profit of $525 million. The negative quarter is attributed to unrealized losses in some major portfolio companies, including Alibaba.
SoftBank's current proactive approach bodes well for India
The company's investment strategy has evolved, adopting a more proactive approach to investment and monetization. This shift aligns with the global rise of tech stocks, as investors seek sectors that can withstand potential macroeconomic declines. This bodes well for India as well. Previously known for its aggressive investments, the investor has not loosened its purse strings in the country over the past 15 months.
