SoftBank Takes $10-Billion Hit
Wochit Business
2020-09-08
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On Tuesday, SoftBank stock took a hit.
SoftBank lost 7.7% over two days following reports that the conglomerate had been making huge and risky bets on tech stocks.
The losses have wiped roughly $10 billion off the market value of SoftBank.
SoftBank shored up its investment in Amazon, Microsoft, and Netflix.
The Wall Street Journal said that the options generated an exposure of about $50 billion.
The size of the bets means that SoftBank (SFTBF) CEO Masayoshi Son is now being called a "whale."
A "whale" is a heavy hitter with the power to move markets on his own.
His company's share holders are nervous because major investments in tech could lead to huge losses is the bubble bursts.
SoftBank lost 7.7% over two days following reports that the conglomerate had been making huge and risky bets on tech stocks.
The losses have wiped roughly $10 billion off the market value of SoftBank.
SoftBank shored up its investment in Amazon, Microsoft, and Netflix.
The Wall Street Journal said that the options generated an exposure of about $50 billion.
The size of the bets means that SoftBank (SFTBF) CEO Masayoshi Son is now being called a "whale."
A "whale" is a heavy hitter with the power to move markets on his own.
His company's share holders are nervous because major investments in tech could lead to huge losses is the bubble bursts.
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