TapTechNews August 6th news, the Japanese stock market suffered a heavy setback on Monday, dragging down the share price of SoftBank Group by 19%, creating the largest single-day decline since the company went public in 1998, and the market value evaporated by 15 billion US dollars (TapTechNews note: currently about 107.05 billion yuan). Resulting in a cumulative decline of 38% in the third quarter, which is expected to set the largest quarterly decline since 2001.
This share price crash occurred when SoftBank's founder, Masayoshi Son, was preparing to increase his investment in the fields of artificial intelligence and semiconductors. The turmoil in the global stock market has also brought great pressure to SoftBank's Vision Fund that invests in hundreds of technology start-ups.
Affected by this, Masayoshi Son's personal wealth shrank by 2.9 billion US dollars in one day (currently about 20.696 billion yuan). In the past three trading days, his wealth has evaporated by more than 5 billion US dollars, erasing most of the gains since the beginning of the year and becoming one of the most severely hit billionaires in Asia.
Analysts believe that the boom of artificial intelligence is fading, and the market pays more attention to the revenue and profitability of AI companies. SoftBank's AI investment strategy may help the company restore profitability, but the implementation risk is relatively high.
SoftBank will release its quarterly financial report on Wednesday, and analysts expect a small profit.