SoftBank reports epic $24.5 billion loss

Affected by the US interest rate hike and the global high-tech stock prices tumble, the Japanese Vision Fund has experienced tragic losses, resulting in a staggering loss of 3.1627 trillion yen (about 24.5 billion US dollars) in SoftBank’s Q1 earnings performance.

Xie Jinhe, a financial expert from Taiwan, said this is an epic loss for SoftBank. Adding up the prior quarter’s 2.1 trillion-yen loss, it makes a half year loss of 5.26 trillion yen. It is no wonder that Japanese media is calling SoftBank “no Bank”, only “Soft” left. Xie went on to say that SoftBank founder Masayoshi Son has been betting on the right things in the past 20 years and became the biggest investor behind Alibaba. The listing of Alibaba on the New York Exchange had made SoftBank the biggest winner, but Jack Ma’s economy wealth creation model for the past 20 years seems to have run out of steam and hit a dead end.

Xie wrote a post on his Facebook account: “since Jack Ma became a bench warmer, SoftBank has been like a deflated ball, switched into decline mode. Looking back at the past 20 years, Masayoshi Son has been betting on Jack Ma, which had made SoftBank prosperous. How will Masayoshi Son steer SoftBank in the future? He needs to find a new wealth creation model and renovate new investment projects.”

“Internet of Things” in Communist China has always been hugely subsidized by the Central government, in order to create web traffic, then market it with the prosperous China nameplate to list them in the US stock exchanges, and let global investors pay for it. This model has been successfully running for the last 20 years. Xie went on in his post: “in the era of low interest rates and the flood of printed money, the above-mentioned approach was a magic wand turning stone into gold, and it has always been the mainstream of the market, but this year is the era to end all of it.” Xie warned that “more companies will show their original shape in the future.”

Aussie Brief News
Aussie Brief News

Go to First Page and Get the Latest News.

Translator: OXV 翻译组
Design&editor: HBamboo(昆仑竹)

Leave a Reply

Your email address will not be published. Required fields are marked *