In its fiscal first quarter, SoftBank reported one of its largest losses at its Vision Fund investment subsidiary as technology stocks continued to decline amid rising interest rates.
The Vision Fund of the major Japanese company reported a 2.93 trillion yen ($21.68 billion) loss for the six-month period. For the Vision Fund, this is the second-largest quarterly loss.
This resulted in a 3.16 trillion-yen net loss for SoftBank for the quarter as opposed to a profit of 761.5 billion yen in the same period the previous year. For the corporation, that represents a record quarterly loss.
Due to the escalating inflation that has prompted the U.S. Federal Reserve and other central banks to boost interest rates, high-growth equities have suffered, which has negatively impacted SoftBank’s Vision Fund, which was established in 2017 and invests in technology businesses.