According to $SoFi Technologies Inc.(SOFI)$ SEC Documents filed on Monday, SoftBank sold part of its 9% stake, which is about 5.4 million SoFi shares on August 5 at a weighted average price of $7.99. On Monday, SoftBank sold another 6.7 million shares at an average price of $8.17.
It didn't change SOFI's trend, why?
Generally speaking, the selling of major shareholders will reduce the confidence of investors, but under the circumstances that "major shareholders are pessimistic about the company's prospects". This time, it's not.
SOFI announced Q2 earnings a few days ago, and it performed better than consensus. We also note that, First, raising interest rates has boosted savings. Second, the federal government's tightening on student loans made more students to adopt SOFI services.This trend is expected to continue in the next two quarters.
Therefore, although SOFI has dropped by 50% this year, the overall sentiment of investors is optimistic.
The more important reason is that SoftBank itself, its own portfolio has been hit so hard this year, it has to sell a lot of stocksIn the vernacular, it is-stop loss.
SoftBank's portfolio is very radical. It has invested in many unicorns before, and some IPOs are very bumpy, and most of them have lost a lot of market value. This left SoftBank with a loss of $11.6 billion in Q1 and $23.4 billion in Q2. Among them, the famous Vision Fund made a loss of 2.91 trillion yen in Q2.
Similarly, SoftBank has a lot of investments through US dollars, so it also has a lot of US dollar bonds. The depreciation of Q2 yen also makes the burden of these US dollar debts heavier, and makes it have to gather more US dollar cash to pay off its debts.
It's not just SOFI, SoftBank sold in Q1$Uber(UBER)$But UBER's Q2 performance is perfect (Softbank may cut in the dip), and it also sold half of it$Alibaba(BABA)$Will stocks also be cut in the dip? Wait and see …
Therefore, the sale of SOFI by $Softbank Group Corp(SFTBY)$ will not change the confidence of SOFI in the current market, but will attract more predators. On the contrary, SOFI is expected to introduce more investors to support it after SoftBank leaves the market.
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