SoftBank group shares move after tough Uber trading day



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On May 9, 2019, Tokyo, Japan, founder of SoftBank Group, Chief Executive Officer, Masayoshi Son, will report the results of his group to the income statement of his group, for the year ended March 31, 2019.

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Shares of the Japanese conglomerate SoftBank Group were under pressure during Monday's trading session in Tokyo, following heavy losses on the first day of the anti-anger giant, Uber, last Friday.

At the close of the Tokyo market on Monday, the shares of the SoftBank group were down 3.25%.

"It's a bit difficult to be sure, but I think Uber's performance is probably the most important factor in Softbank's downfall," Morningstar analyst Baker told Dan Baker. The SoftBank Group, through its Vision Fund, is a major investor in Uber.

"SoftBank has long gone through the Vision Fund and the performances of Uber and Lyft because the listing could have reduced investor expectations as to the value of SoftBank's investments in the space," said Baker.

This analysis was taken up by other experts of the company.

"Some who bought the shares and who saw Uber IPO as a catalyst could be sellers," said Atul Goyal, managing director of Jefferies. The analyst added that lingering concerns over the tariff situation between the United States and China may have contributed to "in the stock.

Last Friday, during its IPO on Wall Street, Uber shares plunged more than 7%, closing at less than $ 42 a share, with a market capitalization of $ 69.7 billion. Competitor Lyft's shares also fell by more than 7%.

Uber is now the second company of its kind to enter the US public market after Lyft's debut in March. Both companies have been extensively reviewed to continue to record heavy losses, but many investors are also intrigued by the entry of this sector into the stock market.

An investor compared the relationship between SoftBank and Uber to that of Lyft and its Japanese sponsor, Rakuten.

"Rakuten has almost become an indirect substitute in Asia … for Lyft … price movements in the United States," said Friday at the airport Andrew Jackson, head of Japanese shares at Soochow CSSD Capital Markets ( Asia), on "Street Signs". Uber's debut on the New York Stock Exchange.

Rakuten shares fell 2.36% on Monday.

– Lauren Feiner of CNBC contributed to this report.

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