Storm clouds gather at SoftBank Group as valuations slide

Major SoftBank assets that went public over the last year and are now trading below their listing price include ridehailing company Didi Global, e-commerce firm Coupang and used-car platform Auto1 Group.

TOKYO: Storm clouds hang over SoftBank Group Corp as it prepares to report third-quarter earnings on Tuesday, with the valuations of top portfolio companies slipping and heavyweights departing the Japanese technology conglomerate.

Major SoftBank assets that went public over the last year and are now trading below their listing price include ridehailing company Didi Global, e-commerce firm Coupang and used-car platform Auto1 Group.

In the quarter that ended Dec. 31, artificial intelligence firm SenseTime was a bright spot but others, such as Paytm parent One 97 Communications, have disappointed.

"The valuations they've made just haven't held up," said Redex Research analyst Kirk Boodry. "There's a lot more scepticism."

The new year has offered little respite to Chief Executive Masayoshi Son: January was a bruising month, as investors turned away from growth stocks promising future profits.

"This looks to be a far more critical time for SoftBank than in 2020, when some of its big bets like WeWork and Oyo had gone sour," Asymmetric Advisors analyst Amir Anvarzadeh, who recommends shorting the firm, wrote in a note.- Reuters