Masayoshi Son, founder of SoftBank Group Corp., has experienced a significant financial setback as the company’s shares plummeted in the wake of recent market turbulence. In just two days, SoftBank’s stock dropped approximately 13%, resulting in a $2.5 billion reduction in Son’s personal fortune. Despite this, his net worth remains approximately $3 billion higher than at the beginning of the year, according to the Bloomberg Billionaires Index.
The sharp decline follows a sudden interest rate hike by the Bank of Japan, which has caused widespread upheaval in the Japanese stock market. SoftBank, one of the world’s largest technology investors, saw its shares slide by 6.7% in morning trading on Friday. This is a dramatic reversal from the 46% increase the company enjoyed through July.
SoftBank’s assets include a significant stake in Arm Holdings Plc, a chipmaker whose stock surged earlier this year on expectations of benefiting from the AI boom. However, Arm’s shares fell 16% on Thursday after the company merely reiterated its annual sales forecast, disappointing investors.
The Japanese stock market is facing its steepest decline since 2020, exacerbated by the Bank of Japan’s tighter monetary policy and a strengthening yen. These factors are impacting SoftBank’s international operations, adding to the company’s woes.
Son, who holds a major portion of his SoftBank stake as collateral for loans, remains the largest shareholder in the $78 billion enterprise. This recent drop highlights the risks inherent in tech investments, which can be highly sensitive to shifts in economic policy.
The next few weeks will be crucial in determining whether SoftBank can recover and stabilize its position in the market, or if this downturn will lead to further challenges for the tech giant.
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
