SoftBank Group Offloads Entire Alibaba Stake After Jack Ma-Founded Company Causes $6.16B Loss
Portfolio Pulse from Benzinga Neuro
SoftBank Group has sold almost its entire stake in Alibaba Group Holding, marking a significant shift from e-commerce to artificial intelligence investments. This decision comes after Alibaba contributed to a $6.16 billion loss for SoftBank. The Japanese conglomerate is now focusing on investments in Arm Holdings and its Vision Funds, with Alibaba's share in SoftBank's net asset value dropping from 48% in 2020 to almost zero.
May 13, 2024 | 1:58 pm
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SoftBank's sale of its Alibaba stake and the reported $6.16 billion loss from Alibaba investments could influence investor sentiment negatively in the short term, potentially impacting Alibaba's stock price.
The sale of a significant stake by a major investor like SoftBank, coupled with the substantial reported losses directly attributed to Alibaba, could lead to negative investor sentiment. This might result in short-term price volatility or a decrease in Alibaba's stock price as the market absorbs the implications of SoftBank's divestment and the reasons behind it.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100