SoftBank Group, Japan’s most influential tech-focused investment company, lost nearly a quarter of the value of its shares during Monday’s crash. This is the company’s second straight session of losses. On Wednesday, the company’s stock tanked by more than 9.17%. This drop was largely attributed to a wider tech stock sell-off across Asia, exacerbated by losses from their U.S. peers overnight.
SoftBank’s stock has tanked since their IPO high. This decline comes on the heels of the firm’s recent announcement of a massive $2 billion investment in Intel—something that typically would be seen as a growth catalyst. The news sent investors reeling. More recently, they pivoted their energies toward increasing alarm over the economic prospects for the tech industry as a whole.
SoftBank Group’s main company is based in Tokyo. Expansion stage VC is a critical piece of the tech industry’s success, making important investments in both high-potential startups as well as more mature companies. The firm’s logo was prominently displayed outside its headquarters on January 22, 2025, a stark reminder of its significance in the market.
SoftBank Group’s shares are in free fall, mirroring the crash of Asian technology stocks. These stocks are under significant pressure from inflation, rising interest rates and rapidly changing economic conditions and state market dynamics. This underreaction and overreaction has resulted in major turbulence across the entire sector, forcing investors to return to the drawing board on their investment theses and strategies.
As tech stocks continue to hit the wall, SoftBank Group’s performance has become the favorite trading indicator of Wall Street stock analysts and hedge-fund managers. The new investment by the firm into Intel indicates the firm’s deep commitment to innovation. This shift by Google highlights the immense difficulties that technology companies are facing in today’s tumultuous economic environment.