SoftBank shares plunge 19%, Masayoshi Son's wealth shrinks by $4.6B
What's the story
SoftBank Group shares took a nosedive of nearly 19% on Monday, resulting in a significant reduction in founder Masayoshi Son's net worth. This steep decline is part of a broader global sell-off that started last Thursday when Japanese equities began to tumble following the Bank of Japan's decision to hike its benchmark interest rate and fears of a looming US recession. According to Forbes's real-time billionaires list, Son lost $4.6 billion in one day due to this market plunge.
Historic drop
SoftBank's worst day mirrors 'Black Monday' of 1987
Monday's market plunge marked the worst day for the Nikkei 225 index since the infamous 'Black Monday' of 1987, with a loss of 12.4%. Black Monday was the global unexpected stock market crash on Monday, October 19, 1987 causing worldwide losses to the tune of $1.71 trillion. At the time, Nikkei had lost 14.9% or 3,836 points. Prior to today's downturn, SoftBank had been experiencing a rally in its stock prices this year, even reaching a new record high.
Financial impact
SoftBank's value drops, Son's fortune still up for the year
The recent price plunge left SoftBank's shares just 1.7% higher for the year. Since Wednesday's close of trade, approximately $28.3 billion has been wiped off SoftBank's value, according to CNBC. The comapny had seen a 46% increase through the end of July. It is set to report its fiscal first-quarter earnings this Wednesday, with investors hoping for further recovery in the Vision Fund. Son has emerged as one of the hardest hit tycoons in the swift reversal of Japanese stocks.