May 18, 2020
Image: Marco Verch, via Flickr
Good morning! This Monday, SoftBank's Vision Fund is underwater, Huawei sanctions are taking a toll, and how someone arbitraged a pizza. Want Index in your inbox each morning? Subscribe here.
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As of 4:50 a.m. PDT: Nasdaq Futures: 1.82% | Euro 600: 2.34% | Nikkei: 0.48% | Hang Seng: 0.58%
SoftBank Group announced earnings this morning, and it was unsurprisingly painful. The company reported an operating loss of $13 billion for the last financial year, its biggest ever — almost all of which was driven by its disastrous startup bets.
Amid the bad news, SoftBank tried to appease investors. The company said it would double its stock buybacks, using its Alibaba stake to raise the cash. It's also reportedly trying to unload some of its T-Mobile stake to Deutsche Telekom, perhaps at a discount.
It seems CEO Masayoshi Son is still confident. He's acting like the company's shares are undervalued and is pretty clear that he thinks his big bets will eventually pay off.
A thing that DoorDash sometimes does is create pages for businesses without their permission, take orders from customers, and then call up the restaurant to place those orders. And sometimes DoorDash gets the pricing wrong, as it did with Ranjan Roy's restaurant-owning friend. Specifically, it charged consumers $16 for a pizza that it then had to pay Roy's friend $24 for.
So, obviously, the pair exploited the system, placing $16 orders through DoorDash, getting $24 from DoorDash, and giving the delivery driver a box with a topping-less pizza in it (which was then delivered to another friend). "I wonder if we've managed to watch an entire industry evolve artificially and incorrectly," Roy writes. I think we might have.