Investments

SoftBank Shares Slide Along With Ride-hailing Stocks

SoftBank Shares Slide With Ride-hailing Stocks

Shares in Japan’s SoftBank Group have been sliding for three straight days, and closed 5.4 percent lower on Tuesday (May 14), according to a report from Bloomberg.

The company had made it a point to illustrate that it was the world’s largest investor in ridesharing companies, but after disappointing IPOs for both Uber and Lyft, the distinction may have turned into a liability.

SoftBank has lost about $16 billion in market value, as Uber fell almost 20 percent below its IPO price. Masayoshi Son, CEO of SoftBank, said the bank controls 90 percent of the ride-hailing market, including shares in Didi Chuxing, Grab and Ola in India.

SoftBank shares climbed to a record high after it bought back 600 billion yen ($5.5 billion) shares. Now that Uber and Lyft have both underperformed, analysts worry the appetite for large-growth, loss-operating companies may be thinning. SoftBank is also one of the biggest shareholders in WeWork, which loses money regularly in favor of growth but has announced a bid to go public.

Last week, SoftBank invested $20 million in Clip, a Mexican FinTech startup that offers a mobile credit card reader for smartphones. Businesses all across Mexico have adapted the technology as a simple and low-cost way to accept payment, according to Reuters.

The investment is one of the first Latin American deals by SoftBank, as it launches its $5 billion tech fund in the area. The money was part of a $100 million funding round for Clip, and the company’s valuation rose to between $350 and $400 million. The company’s total funding amount so far is about $160 million. Other investors include New York-based investment company General Atlantic.

Some companies think SoftBank’s tech fund will help with growth in the region. “Growth will be faster, more dramatic and more competitive,” said Fernando Gonzalez, a partner at Virginia-based QED Investors and CEO of Mexican FinTech startup Coru.

——————————–

Latest Insights: 

Facebook is a giant in the ad game, with 2.3 billion active monthly users and $16.6 billion in quarterly advertising revenue. However, its omnipresence makes it a honeypot for fraudsters. In this month’s Digital Fraud Report, PYMNTS talks with Rob Leathern, Facebook’s director of product management, on how the site deploys automated systems and thorough advertiser vetting to close the lid on fraudster attempts.

TRENDING RIGHT NOW

To Top