Rakuten Diverges From Japan Rally on Dilution, Debt Concerns
- Rakuten has fallen 20% so far this year while Topix gains 22%
- Concerns over its ability to make mobile business profitable
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Shares of Rakuten Group Inc. have tumbled in recent weeks, splitting ways with a surging Japanese equity market, as concerns mount over its debt levels and its ability to make mobile operations profitable.
Investors are watching moves in shares of billionaire Hiroshi Mikitani’s online retailer, after they sank 20% so far in 2023 to a 14-year low following a new stock sale that diluted the value of its equities. By contrast, the Topix benchmark has advanced 22% over the period and touched a 33-year high this month.