SoftBank Group Corp. shares dropped 4.3%, marking their worst intraday decline in almost a month, after shares of Arm Holdings Plc’s recently launched chip subsidiary came under pressure from profit-taking.
Following a 25% increase on their first day of trading on the Nasdaq on Thursday, shares of Arm have decreased by around 4.5% for the past two days. After a run of poorly timed bets on startups, Arm’s $5 billion initial public offering, the largest of the year, was widely regarded as a victory for SoftBank founder Masayoshi Son.
The Tokyo-based technology investor said in a statement that while it anticipates receiving $5.12 billion from Arm’s IPO after costs this quarter, the money won’t boost consolidated profitability. According to SoftBank, the money will instead be added to the capital surplus.
SoftBank, a long-time investor in technology related to artificial intelligence, is hoarding funds to support its bottom line after suffering billions of dollars in losses in its Vision Fund.