Masayoshi Son<\/a> 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<\/a> curtails unnecessary human interaction, it’s hammering such businesses and rattling the foundations of Son’s SoftBank<\/a> Group Corp.

In New York City, the co-working space of SoftBank-backed WeWork<\/a> stands practically empty as tenants stay home for fear of infection. In Shanghai, drivers for the ride-hailing service Didi Chuxing<\/a> have seen their pay plummet as customers avoid shared automobiles. In San Francisco, Dara Khosrowshahi, chief executive officer of Uber<\/a> 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 more than 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.

“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<\/a> “weren’t profitable when times were (relatively) good, begging the question, what will their economics look like in 2020?”

Despite 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.

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.

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Masayoshi Son<\/a> 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<\/a> curtails unnecessary human interaction, it’s hammering such businesses and rattling the foundations of Son’s SoftBank<\/a> Group Corp.

In New York City, the co-working space of SoftBank-backed WeWork<\/a> stands practically empty as tenants stay home for fear of infection. In Shanghai, drivers for the ride-hailing service Didi Chuxing<\/a> have seen their pay plummet as customers avoid shared automobiles. In San Francisco, Dara Khosrowshahi, chief executive officer of Uber<\/a> 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 more than 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.

“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<\/a> “weren’t profitable when times were (relatively) good, begging the question, what will their economics look like in 2020?”

Despite 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.

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.

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