Softbank: The Whale of Nasdaq-100 Revealed
In recent months, the exponential rally of technology stocks sent many of Nasdaq’s frontrunners to sky-high. No one speculated of Softbank’s involvement on the sudden climb.
Apple and Tesla even offered stock split options after per share prices ballooned at unprecedented levels.
The pandemic singlehandedly reverted the course of life and work at a blink. Due to the shift of consumer preference from traditional brick-and-mortar facilities to digital stores, many did not question why tech stocks sustained its growth while others fluctuated from red to green and back again.
Today, Softbank, the financer of the world’s leading startups listed in the vision fund portfolio, is said to be one of the key drivers and “manipulators” of the tech rally in recent months.
According to reports, the Japanese investor purchased technology company options amounting to $4 billion gain. Mostly from the stocks it already owns from Microsoft and Amazon.
It also bought significant stakes on other Nasdaq-listed tech firms, namely Tesla, Apple, and Zoom. The move caused a trading frenzy on Wall Street.
While the company is believed to have bought a massive scale of equity derivates, it declined to comment on the circulating news.
The Whale’s Vision Fund Portfolio
Its $100 billion-worth Softbank venture managed to provide financial cushioning on some of the world’s well-known technology startups today.
Some of these include Uber, WeWork, and Oyo, among others.
Since many of the companies listed on its vision fund portfolio experienced a sharp drop in revenue in the past months, Softbank made significant investments in the options market to keep its elite position afloat.
Analysts warn about the possibility of a record-breaking Nasdaq sell-off. It could weigh down some of the industry’s key drivers that have experienced big chunks of gains since the pandemic.
The technology-heavy index experienced successive setbacks last week. Experts say that this may indicate that the conglomerate is ready to offload some of its coveted options.
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