BABA - Alibaba Group Holding Limited

NYSE - NYSE Delayed Price. Currency in USD
188.59
-6.73 (-3.45%)
At close: 4:02PM EDT
Stock chart is not supported by your current browser
Previous Close195.32
Open189.97
Bid0.00 x 1800
Ask0.00 x 3200
Day's Range188.00 - 192.74
52 Week Range147.95 - 231.14
Volume13,376,354
Avg. Volume17,065,248
Market Cap483.505B
Beta (5Y Monthly)2.09
PE Ratio (TTM)53.93
EPS (TTM)3.50
Earnings DateMay 12, 2020 - May 17, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est1,826.20
  • How companies are stepping up to ease coronavirus hardships
    Yahoo Finance

    How companies are stepping up to ease coronavirus hardships

    As companies around the country and world suffer from the effects of the deadly novel coronavirus, some businesses are stepping up to help alleviate some of the economic impact. Here’s a list of some of their efforts so far. We’ll continue to update this list as more companies contribute to the relief effort.

  • Jack Ma Foundation and Alibaba Foundation Donate to Seven More Countries in Asia to Fight COVID-19
    Business Wire

    Jack Ma Foundation and Alibaba Foundation Donate to Seven More Countries in Asia to Fight COVID-19

    The Jack Ma Foundation and the Alibaba Foundation today announced donations of essential medical supplies to seven more countries in Asia.

  • Barrons.com

    SoftBank Group Has Multiple Problems. It Also Has an Undervalued Stock.

    Moody’s isn’t impressed, but maybe it should be: SoftBank has holdings worth almost triple its current stock price.

  • Barrons.com

    25 Tech Stocks for a Post-Coronavirus World

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  • A Trio of Stocks Growing Capex Fast
    GuruFocus.com

    A Trio of Stocks Growing Capex Fast

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  • Yandex Unveils Project Helping Hand to Combat Coronavirus
    Zacks

    Yandex Unveils Project Helping Hand to Combat Coronavirus

    Yandex (YNDX) rolled out a project called Helping Hand, which will manage transportation, medicinal deliveries, and food and other essential commodity supplies to fight COVID-19 pandemic.

  • Bloomberg

    Son Has Now Pledged 40% of His Stake in SoftBank to Lenders

    (Bloomberg) -- Masayoshi Son pledged an extra 10.1 million SoftBank Group Corp. shares to lenders in the past two weeks as he unveiled an ambitious plan to overhaul his Japanese conglomerate and silence critics.Son has now committed 227 million SoftBank shares as collateral, worth about $8 billion, according to regulatory filings. That’s about 40% of his 27% stake in the publicly traded conglomerate. The newly pledged shares were worth about $360 million at Friday’s close.The Japanese billionaire has more than tripled the level of pledging since 2013, turning to banks including UBS Group AG, Nomura Holdings Inc., Credit Suisse Group AG and Julius Baer Group Ltd. It’s not uncommon for the ultra-wealthy to borrow against their stock, but Son’s use of the tactic is among the most significant tracked by the Bloomberg Billionaires Index. The amount he’s pledged trails only Larry Ellison, Russia’s Suleiman Kerimov and China’s Qin Yinglin on the ranking of the world’s 500 richest people.Son’s net worth is $12 billion, which excludes the value of the pledged shares. It has fallen $3.6 billion so far this year and has been one of the more volatile fortunes tracked by Bloomberg.SoftBank spokesman Takeaki Nukii declined to comment on Son’s personal finances.SoftBank has been battling on several fronts this year, including facing pressure from Elliott Management Corp., which called for a special committee to review processes at the Vision Fund, the world’s largest single investment pool for tech startups. Son has responded with a plan to sell about $14 billion of shares in Chinese e-commerce leader Alibaba Group Holding Ltd. as part of an effort to raise $41 billion to shore up businesses battered by the coronavirus pandemic. Son moved ahead after he reportedly considered and then abandoned the idea of taking his conglomerate private.SoftBank also lashed out at Moody’s Corp. this week after its debt was downgraded by two notches, accusing the ratings company of “bias” and “creating substantial misunderstanding.”Some other billionaires are scrambling to meet margin calls on their pledged shares. India’s Gautam Adani and his family put up an additional $1.4 billion of shares as collateral on existing debt this month, and wealth managers like UBS and Credit Suisse have asked clients to post additional collateral.(Updates with Moody’s response in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • A Short-Term Dip in Alibaba's Price Could Be a Buying Opportunity
    TheStreet.com

    A Short-Term Dip in Alibaba's Price Could Be a Buying Opportunity

    During Thursday's Mad Money program, Jim Cramer said the strong Q2 news from Micron Technology will have a ripple effect on all of the cloud stocks. In this daily bar chart of BABA, below, we can see that prices declined from around the middle of January to the middle of March. BABA corrected about 2/3 of the previous advance with support developing in the middle of the June-October consolidation area.

  • Dow Jones Futures Fall As U.S. Coronavirus Cases Top China's; 5 Stocks Setting Up Amid Market Rally
    Investor's Business Daily

    Dow Jones Futures Fall As U.S. Coronavirus Cases Top China's; 5 Stocks Setting Up Amid Market Rally

    Futures fell as U.S. coronavirus cases surpassed any other country, including China and Italy. Amid a stock market rally attempt, Amazon, Alibaba, AMD, Netflix, GSX are setting up.

  • 3 Big Stock Charts for Friday: JD.com, Charter, and Thermo Fisher
    InvestorPlace

    3 Big Stock Charts for Friday: JD.com, Charter, and Thermo Fisher

    By one measure, the bull market returned on Thursday. As we noted in yesterday's Big Stock Charts, there was a technical argument that the Dow Jones Industrial Average had done so yesterday. The case is easier to make after the Dow rallied another 6.4% on Thursday.Source: Shutterstock As Barron's noted, the term "bull market" isn't set in stone. But the Dow, incredibly, has rallied 21.3% in just three sessions, satisfying one common definition. Add in a late-day rally Monday and the bounce nears 24%.A snapback rally in Boeing (NYSE:BA) has been a key contributor. But the S&P 500 itself has gained 18% in three days. The rally has been broad as well as steep.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem As U.S. stocks look to close what could be the best week of trading since the 1930s, optimism seems to have returned. Friday's big stock charts look to tap into that optimism. Like the market, all three stocks found support. And all three could see more upside ahead. JD.com (JD)Source: Provided by Finviz To look at the first of Friday's big stock charts, one might not even know a sell-off had occurred. JD.com (NASDAQ:JD) has mostly rallied through broad market declines, and there's a case that the rally should continue: * For the most part, this simply looks like a solid chart. A broadening ascending wedge that's held since August suggests new highs are on the way. Excluding a short-lived dip, JD stock mostly has held the 50-day moving average, which can provide support going forward as well. An investor might worry about short-term resistance as a few rallies have reversed this year, but that aside it seems like JD stock should head higher. * Fundamentally, there's a strong case. Just last week I highlighted JD stock as one of seven stocks that had survived the market carnage and could keep rallying. Shares aren't all that expensive relative to trailing earnings. China is getting back to normal. Its e-commerce market is big enough for both JD and larger rival Alibaba (NYSE:BABA). * That said, JD probably needs this rally to hold, or at least not reverse. Trading earlier this month shows that broad market weakness can bring JD.com down with it. In-country risk remains elevated. As with the market as a whole, investors can be hopeful but they still need to mind the downside. Charter Communications (CHTR)When we highlighted Charter Communications (NASDAQ:CHTR) in Big Stock Charts almost two months ago, the chart looked fantastic while the fundamentals were questionable. Even with CHTR stock 15% cheaper, this edition of Big Stock Charts sounds much the same: * CHTR stock managed to bounce nicely off support that held in August. Thursday's rally retook the 200-day moving average. There seems to be a path to at least the 50DMA, which suggests roughly 8% further upside. * But the fundamentals still look questionable at this price. Charter still has to deal with the effects of cord-cutting going forward. A valuation of 23x forward earnings hardly seems cheap in that context. * Charter has been a wonderfully-managed company as it's built out its business through acquisitions. As a result, it was one of the best stocks of the bull market: at February highs, CHTR had rallied almost 1,500% from financial crisis-era lows. After this bounce Charter stock is basically back where it was in mid-December -- and 'only' up about 1,200% from the 2009 nadir. * For investors who believe the bounce of the last three days has gone too far, this chart can serve as Exhibit A. As steep as the decline seemed to be, there are a significant number of large-cap stocks like CHTR who now trade back where they did just months ago. Fundamentally, CHTR shows that the buying opportunity in the market as a whole might not be quite what a 30%-plus decline in major indices would suggest. Thermo Fisher Scientific (TMO)Source: Provided by Finviz Market bulls might see it differently, however. Those that do should take a look at the third of Friday's big stock charts, which suggests that Thermo Fisher Scientific (NYSE:TMO) has a rally ahead: * As with CHTR, TMO stock has seen support hold, save for a brief decline during the worst of the market panic. But it hasn't received quite the same bounce: shares are up 'just' 13% from their low (and even less looking to closing prices). There's whitespace toward moving averages which can be reached if market stability holds. * Meanwhile, Thermo Fisher shouldn't have much, if any, real impact from pandemic fears. The life sciences supplier serves customers that have little or no macroeconomic exposure. The scramble to treat the coronavirus may cause some short-term supply chain issues, but hardly enough to drive a 17% decline from February highs. * Again, market bulls should consider TMO here just above support. But skeptics might respond that the decline here makes more sense than it seems. Many believe that market valuations simply had run too far in February. From that perspective, the fall in TMO stock isn't an unjustified sell-off. It's a correction. And the same trend explains at least a portion of the big fall elsewhere in U.S. stocks.Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets. He has no positions in any securities mentioned. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post 3 Big Stock Charts for Friday: JD.com, Charter, and Thermo Fisher appeared first on InvestorPlace.

  • SoftBank’s Bet on Sharing Economy Backfires With Coronavirus
    Bloomberg

    SoftBank’s Bet on Sharing Economy Backfires With Coronavirus

    (Bloomberg) -- Masayoshi Son has been among the most fervent believers in the sharing economy, investing billions in startups that help people split the use of cars, rooms and offices. But as the coronavirus curtails unnecessary human interaction, it’s hammering such businesses and rattling the foundations of Son’s SoftBank Group Corp.In New York City, the co-working space of SoftBank-backed WeWork stands practically empty as tenants stay home for fear of infection. In Shanghai, drivers for the ride-hailing service Didi Chuxing have seen their pay plummet as customers avoid shared automobiles. In San Francisco, Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., another SoftBank investment, said “I wouldn’t put my kids in an Uber.”Investors are increasingly spooked about the stability of Son’s empire and its $100 billion Vision Fund amid the pandemic. Before this week, SoftBank shares had tumbled about 50% in a single month, including their worst one-day decline since the Japanese billionaire listed his company in 1994. In response, the SoftBank impresario launched one of the most audacious deals of his career: sell part of Alibaba Group Holding Ltd. and other assets to raise $41 billion to buy back shares and slash debt.While that envisioned deal put a floor under the share price, it hasn’t changed the fundamental vulnerability of an edifice built on sharing-economy standouts that’ve been walloped since sheltering in place became the norm. SoftBank gained about 40% since Son revealed that blueprint, which is said to include unloading $14 billion of Alibaba stock for starters. But it remains down about 30% from a February peak. In fact, Moody’s Corp. questioned the wisdom of selling prized assets into a market downturn and pushed SoftBank’s debt deeper into junk territory. SoftBank fired back by accusing Moody’s of bias, but its stock fell 9.4% on Thursday.“Right now, investments sensitive to sharing and the economy are not where you want to be, with the pandemic encouraging a stay-at-home mentality,” said Pelham Smithers, whose London-based firm offers research on Asian technology companies, in a note to clients. Companies such as WeWork, Uber and the hotel-booking Oyo “weren’t profitable when times were (relatively) good, begging the question, what will their economics look like in 2020?”Read more: Masa Son Unveils a $41 Billion Asset Sale to Silence His CriticsDespite the stock bounce, SoftBank’s credit default swaps -- the cost of insuring debt against default -- are still near their highest levels in a decade. The concern isn’t so much that the Japanese giant won’t be able to pay its own debts -- its cash will cover money due for at least the next two years. Rather, investors fret that Son’s 80-plus portfolio companies will struggle in the current environment, triggering negative headlines and massive writedowns.“With the prospect of more good money being sunk into firms like WeWork and Oyo, investors would not have reacted as positively as they did this week,” Amir Anvarzadeh, a market strategist at Asymmetric Advisors Pte. in Singapore, said in a note to clients.Most worrisome for investors, Son -- who saw $70 billion wiped from his net worth in the dot-com crash -- may feel compelled to step in to support some of his startups rather than see them fail. The litany of woes surrounding SoftBank’s highest-profile startups threatens to tarnish Son’s reputation as a tech investor -- one built largely on an early bet on Alibaba before it came to dominate Chinese e-commerce, which he’s struggled to replicate.Last year, after WeWork’s effort to go public fell apart, SoftBank stepped in to organize a $9.5 billion bailout. Son had to choose between financial aid or bankruptcy, at a time when risk aversion is straining global tech investment.“SoftBank frustrated investors already with its assistance to WeWork last year,” said Makoto Kikuchi, chief investment officer at Myojo Asset Management Co. in Tokyo. “SoftBank owns many investments such as tech companies that get hit particularly in this situation.”SoftBank and Vision Fund representatives declined to comment for the story.Read more: SoftBank Blasts Moody’s for ‘Biased’ Ratings DowngradeSon did vow he wouldn’t step in to rescue any more portfolio companies after WeWork and called for more financial discipline. Among SoftBank startups, Brandless Inc. said in February it would close down while satellite operator OneWeb is mulling a possible bankruptcy filing.“It’s unlikely that SoftBank portfolio companies will see any of that money, because the announcement was pretty clear on the purpose of the asset sale,” said Justin Tang at United First Partners. “In fact, it would be an opportune time for SoftBank to get rid of its weaker portfolio companies and stick with the leaders.”On Wednesday, Moody’s said it will watch SoftBank and the extent to which tumbling valuations will hurt its tech-heavy portfolio. Son’s biggest bet to date has been on ride-hailing, with stakes in Uber and the leading companies in China, India and Southeast Asia. The latest to exhibit signs of trouble was European player Getaround, which is now said to be dangerously short of cash and actively seeking a buyer.Beijing-based Didi Chuxing is another prime example of how the virus is walloping these operations. The startup, once tagged at $56 billion, had struggled to justify its valuation even before the latest crisis because of a government crackdown on its services. Ridership tumbled during the outbreak in China and Didi cut driver subsidies.Sheng Gang, a 34-year-old Shanghai resident, said he used to earn a 36 yuan ($5) bonus for every four rides during the morning rush hour; now that’s been lowered to just 6 yuan for every three. He expects his income to drop by about half this month to around 10,000 yuan.“I don’t have a Plan B since I just bought a new car,” Sheng said.Wen Peng, a 35-year-old Hebei native, earned around 6,000 yuan a month as a part-time driver. But when the coronavirus hit, most people chose to stay inside and he couldn’t sustain himself. He quit in February.“People didn’t leave their homes, almost no one wanted rides,” he said. “Many others quit for similar reasons.”A Didi spokeswoman said ridership has rebounded significantly in recent weeks as people went back to work.Read more: WeWork’s New Crisis: ‘Workplaces Will Never Be the Same’WeWork is another question mark: SoftBank has told WeWork shareholders that it could withdraw from the agreement to buy $3 billion of its stock that was part of a bailout deal. WeWork has kept its offices open despite the virus, even while other co-working operators have closed them. That may be because revenue would disappear otherwise, just as SoftBank is trying to engineer a turnaround. WeWork said Thursday it doesn’t expect to hit its 2020 financial targets as it grapples with the outbreak.One executive who usually uses a WeWork office on Park Avenue in New York said hardly anyone shows up anymore. His WeWork representative has stopped coming to the site and works remotely. He figures customers may be canceling their leases or simply not paying, which would leave WeWork on the hook for rent owed to the landlord, Tishman Speyer. “None of us are going to the office,” he said. “But we’ve decided for now to just kick any decisions down the road for six months.”Then there’s Oyo, which is in a particularly tricky spot. The Indian company has been expanding rapidly by guaranteeing a certain amount of revenue to hotels if they sign on as franchisees. But with few travelers anywhere, Oyo has to pay hotels even when their rooms are mostly empty.At the Kawasaki Hotel Park in Japan, more than 400 reservations were canceled for February to April. The result was a drop in revenue of about 25 million yen ($226,000), according to Sanho Miyamoto, the owner.“Overseas customers disappeared and Japanese businessmen halted business trips. I had to ask our employees to take a vacation for a while,“ Miyamoto said. “I am worried whether Oyo can manage because it guarantees the revenue fall for its members.”He wouldn’t comment on arrangements with Oyo. But if the startup paid the entire shortfall, it would lose about $240,000 on a single hotel.Read more: Masayoshi Son’s Other Big Real Estate Bet Has Some Real ProblemThere’s opportunity in the downturn too. SoftBank-backed Slack Technologies Inc., a popular work communications tool among home workers, has surged following lockdowns from New York to California. And after a difficult first year in Japan, Oyo has turned to promising cash for hotels that join its platform as bookings plunged. While the company didn’t say how much it was prepared to spend, that kind of opportunism can only shorten its runway of available cash.Investors fear that companies like Oyo have become too big to fail for SoftBank, Atul Goyal, senior analyst at Jefferies Group, wrote in a report. The WeWork rescue showed that “zero is not a floor” for any SoftBank investment and that Son is willing to throw more good money after bad, he wrote.SoftBank may soon prove Goyal right. The company is seeking to raise an additional $10 billion so its first Vision Fund can support portfolio companies, according to people with knowledge of the matter. And the list of SoftBank portfolio firms that may soon need help also includes gym company Gympass, Getaround and travel startups Klook and GetYourGuide.“These startups are geared for high growth and high cash burn,” Goyal said. “As revenues fall, they will need further infusions of capital to keep the lights on.”Read more: SoftBank Seeks $10 Billion to Support Vision Fund Companies(An earlier version of the story corrected the name of GetYourGuide.)(Updates with WeWork’s warning in the 21st paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • 5 Stocks Top Earners Steven Cohen and David Tepper Agree On
    GuruFocus.com

    5 Stocks Top Earners Steven Cohen and David Tepper Agree On

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  • Moody's

    Alibaba Group Holding Limited -- Moody's announces completion of a periodic review of ratings of Alibaba Group Holding Limited

    Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Alibaba Group Holding Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.

  • Business Wire

    Multi-Lingual Support From the Global MediXchange of Combating COVID-19 (GMCC) Programme to Further Enable Sharing Among Medical Personnel Worldwide

    Multi-Lingual Support From the Global MediXchange of Combating COVID-19 (GMCC) Programme to Further Enable Sharing Among Medical Personnel Worldwide

  • Bloomberg

    SoftBank Blasts Moody’s for ‘Biased’ Ratings Downgrade

    (Bloomberg) -- SoftBank Group Corp. lashed out at Moody’s Corp. after its debt was downgraded by two notches, accusing the ratings company of “bias” and “creating substantial misunderstanding” days after the investment group announced a $41 billion asset sale program intended to shore up confidence.SoftBank’s shares slid as much as 8.4% early in Tokyo trade. The Moody’s downgrade -- lowering SoftBank’s corporate family rating and senior unsecured rating to Ba3 from Ba1 -- pushed the company deeper into junk territory. It comes at a critical time for founder Masayoshi Son, who this week set in motion his biggest play yet to silence critics and shore up his company’s crumbling shares and bonds.“Such a downgrade, which deviates substantially from Moody’s stated rating criteria, will cause substantial misunderstanding among investors who rely on ratings in making investment decisions,” SoftBank said in a statement, which also asked Moody’s to withdraw the rating.While SoftBank had 1.7 trillion yen ($15 billion) of cash and equivalents on hand at the end of December, it also has a huge debt load: The firm faces 1.68 trillion yen of bonds and loans coming due over the next two fiscal years and a total of about 3.6 trillion over the following four-year period.Read more: Masa Son Unveils a $41 Billion Asset Sale to Silence His CriticsThe company, which also operates the $100 billion Vision Fund, is vulnerable to economic shocks given that debt, and its ties to unprofitable startups from WeWork to Oyo Hotels. Many of the Vision Fund’s biggest bets lie in what’s known as the sharing economy, which has been particularly hard-hit by the pandemic that’s causing millions of people to stay indoors. Travel spending has slumped as a result.SoftBank is said to be targeting the sale of $14 billion of stock in the Chinese e-commerce leader Alibaba Group Holding Ltd., as well as slices of its domestic telecom arm and Sprint Corp., which is merging with T-Mobile US Inc. But SoftBank risked unloading some of its most prized assets at a discount given the downturn, Moody’s said in its statement.“Asset sales will be challenging in the current financial market downturn, with valuations falling and a flight to quality,” said Motoki Yanase, a Moody’s senior credit officer in Tokyo.Read more: SoftBank Is Said to Plan $14 Billion Sale of Alibaba Shares“SoftBank’s decision to withdraw its corporate and foreign currency bond ratings by Moody’s probably wouldn’t save the company from higher new borrowing and refinancing costs.”Anthea Lai, analyst, Bloomberg IntelligenceThe scale of the endeavor unveiled by SoftBank on Monday surprised investors. Despite several days of gains, however, the stock remains down about 30% from its 2020 peak, underscoring persistent concerns that tumbling technology valuations will damage Son’s company. S&P Global Ratings said this week the asset sales could ease downward pressure on SoftBank’s credit quality.The rout triggered by the coronavirus has spread to credit markets and sparked a surge in the cost of insuring debt against default -- including that of SoftBank, whose credit-default swaps are near their highest level in about a decade. Apollo Global Management, the alternative asset management house co-founded by Leon Black, has placed a short bet against bonds issued by SoftBank because of its tech exposure, according to the Financial Times.(Updates with share action from the second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bullish investors pour money into Alibaba, Amazon, Intel and Microsoft
    MarketWatch

    Bullish investors pour money into Alibaba, Amazon, Intel and Microsoft

    That’s what professional investors are buying. Momentum chasers are purchasing Apple, AMD, Netflix and Tesla.

  • Letter from locked-down Italy: the Cuban, Russian and Chinese efforts to assist Lombardy
    MarketWatch

    Letter from locked-down Italy: the Cuban, Russian and Chinese efforts to assist Lombardy

    For ordinary Italians, horrified by the virulence of the COVID-19 disease, all that matters is that help is at hand. Many have complained about “communist aid” but Italians, in the current circumstances, don’t care about geopolitics.

  • GuruFocus.com

    David Tepper Is 'Nibbling' at Stocks as Coronavirus Uncertainty Continues

    Appaloosa Management leader reveals he is cautiously investing in tech, health care Continue reading...

  • SoftBank’s Son Is Betting on Himself After Go-Private Talks
    Bloomberg

    SoftBank’s Son Is Betting on Himself After Go-Private Talks

    (Bloomberg) -- SoftBank Group Corp.’s Masayoshi Son is continuing to bet on himself, even after he considered and then abandoned the idea of taking his conglomerate private.Son discussed the idea with investors including Elliott Management and the Abu Dhabi sovereign-wealth fund Mubadala in the past week, the Financial Times reported, before moving ahead with a plan to sell assets instead.The Japanese billionaire is backing himself in other ways. A regulatory filing Tuesday shows his stake has risen to 26.9% from 25.5% and, with SoftBank’s shares gyrating wildly, he also pledged more stock against his holdings.Son committed an extra 600,000 shares, or about 0.3% of his holdings, to lenders, the filing shows. It means 38.6% of his stake is now pledged to global banks including UBS Group AG and Nomura Holdings Inc., more than triple the level in 2013.He also loaned 30 million shares -- about 5% of his holding -- to Son Equities, according to the disclosure. The holding company is invested in GungHo Online Entertainment, a gaming firm founded by his youngest brother Taizo Son whose shares have dropped 33% this year, according to data compiled by Bloomberg.The size of Son’s pledges -- 216.9 million shares worth $7.4 billion -- are among the most significant tracked by the Bloomberg Billionaires Index. That amount trails only Larry Ellison, Russia’s Suleiman Kerimov and China’s Qin Yinglin on the ranking of the world’s 500 richest people.“It’s most common among controlling shareholders,” said Michael Puleo, assistant professor of finance at Fairfield University’s Dolan School of Business in Connecticut. The practice is rare right now because of the stock market rout and it is much more expensive to satisfy margin calls, he said. “Banks want nothing to do with high-risk loans.”Largest FortunesSoftBank spokeswoman Hiroe Kotera declined to comment on Son’s personal finances.SoftBank’s shares have tumbled since February with investors concerned about some of its investments.The past week Son began thinking of a leveraged buyout after Gordon Singer of Elliott’s London office expressed interest in buying more SoftBank shares last week, one person said, according to the FT. The plan was eventually abandoned for a number of reasons, including difficulty in getting an investor consortium together so quickly for a large deal, Tokyo listing rules and tax considerations.The regulatory filing doesn’t explain the rationale for Son’s 30-million-share transaction but the shifting of stakes is a reminder of the complex web of relationships that have long underpinned one of Japan’s largest fortunes.When GungHo was spun out of SoftBank in 2015 all the shares owned by Taizo Son’s holding company were pledged to his brother’s Son Holdings, according to a statement at the time. Son has also leveraged his stake in the Vision Fund, which invests in tech startups, including WeWork and DoorDash. That boosts his returns if things go well, with outsize losses if they don’t.Leveraged bets are common among the wealthy, but the marketwide plunge triggered by the spread of the coronavirus is pressuring rich families across the globe, who over the years used share-backed debt facilities. Some are now facing margin calls, adding to broader financial turmoil.India’s Gautam Adani and his family put up an additional $1.4 billion of stock as collateral on existing debt earlier this month. In China, shareholders of at least 14 firms were asked to supply additional shares. The Hinduja family, one of the world’s richest clans with interests in finance, energy and real estate, are repaying debt backed by equity they hold in lender IndusInd Bank Ltd. after a stock rout caused a breach in loan terms.Like Son, SoftBank isn’t averse to pledging its holdings. Its stakes in Alibaba Group Holding Ltd. and SoftBank Japan both include pledged shares.The company’s enormous debt load and ties to unprofitable startups from WeWork to Oyo Hotels through its $100 billion Vision Fund are worrying investors. Other assets like chipmaker Arm Holdings aren’t listed and may prove difficult to monetize quickly. Moody’s Japan downgraded SoftBank’s unsecured debt rating on Wednesday, saying the Japanese investment firm’s plan to sell off assets during a market downturn threatened the value of its entire portfolio. SoftBank responded to the downgrade by saying it was “biased and mistaken.”SoftBank shares have tumbled 27% since Feb. 12, even after soaring this week on Son’s plan Monday to unload 4.5 trillion yen ($41 billion) of assets.The disposal includes the sale of about $14 billion of its shares in prize asset Alibaba. That amount will probably increase, Bloomberg Intelligence analyst Anthea Lai said in a note this week.Even for a billionaire who embraces risk as much as Son, the past few weeks have been tumultuous.At the start of the month his fortune stood at $17 billion. In two weeks it was cut in half. So far this week it has climbed by about 50% as markets embraced his plan.Son may be comfortable with such swings. He saw $70 billion wiped from his net worth in the dot-com crash. But falling fortunes aren’t the only potential downside of pledging shares.“It can get painful for more than one reason,” said Fairfield University’s Puleo. “There’s the loss of wealth but it also creates very negative headlines.”(Updates with Moody’s downgrade in 16th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Moody's

    SoftBank Group Corp. -- Moody's downgrades SoftBank Group to Ba3; places ratings on review for further downgrade

    Moody's Japan K.K. has downgraded SoftBank Group Corp.'s (SBG) corporate family rating (CFR) and senior unsecured rating to Ba3 from Ba1, and its subordinate rating to B2 from Ba3. At the same time, Moody's has placed the ratings under review for further downgrade. The rating action follows SBG's announcement on 23 March 2020 that it will monetize up to JPY4.5 trillion (about $41 billion) of its investment portfolio and use the proceeds to repurchase up to JPY2 trillion ($18 billion) of its own shares.

  • Barrons.com

    SoftBank and Other Tech Companies Donate Masks as Hospitals Struggle to Find Them

    With health workers nationwide running low on masks and other protective gear, a growing list of technology companies are locating their own supplies and donating them to those on the front lines of the coronavirus pandemic. On Monday, a (9984) (SFTBY) executive announced on Twitter that the company is donating 1.4 million N95 respirator masks to the State of New York. A spokesperson for SoftBank said the company obtained the masks specifically to donate them to the state.

  • Here's What Top Hedge Funds Are Buying In The Coronavirus Stock Market Crash
    Investor's Business Daily

    Here's What Top Hedge Funds Are Buying In The Coronavirus Stock Market Crash

    Hedge fund manager Bill Ackman bet on Warren Buffett's Berkshire Hathaway and Starbucks. David Tepper added to his Amazon stake.

  • Barrons.com

    SoftBank Rally Continues as Company Reportedly Plans to Sell $14 Billion of Alibaba Stake

    SoftBank’s single largest asset is its 26% stake in Alibaba. It reportedly intends to sell $14 billion of its shares, a little over 10% of its position.

  • Stock Market News for Mar 24, 2020
    Zacks

    Stock Market News for Mar 24, 2020

    Benchmarks closed in the negative territory on Monday after lawmakers failed to implement the massive fiscal stimulus designed to ease the economic impact of COVID-19.

  • Alibaba (BABA) Expands in Digital Media Via Yinhekuyu Buyout
    Zacks

    Alibaba (BABA) Expands in Digital Media Via Yinhekuyu Buyout

    Alibaba's (BABA) subsidiary, Alibaba Pictures acquires Yinhekuyu Media to fortify its presence in the digital media industry.