(Nov 11): SoftBank Group Corp shares dropped as much as 11% after the Japanese tech investor reported its first net loss in almost two years, after a US$3.7 billion (RM15.1 billion) writedown for its US data-centre projects and falling AI valuations.

The stock traded as low as ¥3,465 (RM88.88) in Tokyo on Wednesday. The company swung to a ¥1.12 trillion loss in its fiscal second quarter after writing down nonrefundable advance payments it made to secure power-generation equipment for its eight-gigawatt Ohio project and other US data centres.

While part of the loss is due to accounting, “the real issues are a ¥597 billion power-equipment write-off that raised more questions” than what the management could explain, and the financing costs that grew 2.6 times year on year, Jefferies analyst Atul Goyal wrote in a note. “Management is playing defence.” 

SoftBank shares have plunged almost 60% from their record high in June, among the worst performers on the Nikkei 225 Stock Average for the period. Volatility, meanwhile, has risen as investors sought to gauge the risks and opportunities around its artificial intelligence investments. 

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