What's going on?

On Wednesday, Japanese conglomerate SoftBank reported third-quarter results which revealed the company�s first quarterly loss in 14 years. And we already know who�s to blame�

What does this mean?

SoftBank has poured over $10 billion into co-working space company WeWork � both directly and via the $100 billion Vision Fund, its venture capital investment subsidiary. But after SoftBank bailed out WeWork following a highly publicized fall from grace � in which its valuation shrank from $47 billion in January to just $8 billion last quarter � the value of the company was reduced by $4.6 billion on SoftBank�s books, leading to a major accounting loss. Adding insult to injury � and losses to its bottom line � some of SoftBank�s other investments also did poorly during the quarter: Uber, Slack, and Guardant Health�s stocks all lost roughly a third of their value.

Why should I care?

For markets: A little bit of both.

At its core, SoftBank is a �defensive� telecom company, meaning its earnings should be pretty stable and predictable. But loss-making companies such as Uber and Slack are �cyclical�: they have less predictable earnings that ebb and flow with the economic tide, making SoftBank � which has bet big on these companies � a riskier choice for investors than a traditional telecom company (tweet this).

The bigger picture: A brave new world dot com.

SoftBank is, erm, banking on both the digitization of the new economy and � like several others in industries from healthcare to banks � on growth outside Japan. That might work out in the long run, but it can expect a bumpy road for now. Whether investors are prepared to sign up for that journey and back another $100 billion Vision Fund remains to be seen: Saudi Arabia and Abu Dhabi, the current Vision Fund�s two major investors, seem reluctant to commit to another round in the wake of the WeWork turmoil.