No stock answer for the big share buyback question

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](.  ---------------------------------------------------------------  Written by Peter Cowan  Journalist  Hello {NAME} Maximizing shareholder value has become a bit of a grubby phrase, thanks in no small part to internet meme culture. After all, it’s hard to be motivated to make the rich richer when you’re holding down a pretty boring 9 to 5 job (I speak from past experience). But online loathing aside, this is what stewards of publicly listed companies are tasked with doing. To be sure, it’s not their only mission, but it’s likely a top priority. In this week’s Big Story, my colleague Simon dives into share buybacks, a practice designed to boost a company’s share price and return capital to shareholders. Simon analyzed 12 of Asia’s biggest tech firms but found little correlation between a share buyback and share performance. If anything, the companies that didn’t purchase their own shares performed better over time. As the full piece shows, share buybacks are no silver bullet for poor operational performance. -- Peter  ---------------------------------------------------------------  THE BIG STORY [Asia tech firms go big on buybacks, but outcomes are mixed]( Our sample of 12 Asian tech companies suggests that, over the past six months, those that did not announce buybacks outperformed those that did. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ An Apple investment a day keeps the doctor away: Apple (AAPL, Nasdaq) CEO Tim Cook has been touring Southeast Asia in the past week and wherever he went, promises of investment have followed. During his visit to Vietnam, Cook said Apple plans to [increase]( its investments in the country’s electronics suppliers. Since 2019, the firm has poured US$15.8 billion through its Vietnam-based supply chain partners. While in Indonesia, Cook announced that the company would open an [Apple Developer Academy]( in Bali. Apple already has three such academies in Jakarta, Surabaya, and Batam, but it’s easy to imagine why a holiday island like Bali might be a more popular destination for developers. In Singapore, where Apple employs more than 3,600 people, the firm announced it would be investing a further [US$250 million]( to expand its campus in the city-state. 2️⃣ Bump in the road?: VinFast (VFS, Nasdaq) has some ambitious goals for 2024, including delivering 100,000 electric vehicles (EVs). However, judging by its [first quarter results]( the Vietnam-based firm has some way to go. VinFast delivered 9,689 EVs - 4x more than a year ago - in Q1, but that’s still well off its 2024 target. The firm also recorded a net loss of US$618.3 million, more than double its revenue during the period. Despite the results, VinFast appears confident. The firm remains “committed” to meeting its delivery goals and views the ongoing global economic and geopolitical uncertainties as “temporary hurdles,” says chairperson Thuy Le. 3️⃣ Chips are down: Chipmaker TSMC’s (2330, TWSE) stock price [dipped by 6%]( after releasing its first-quarter earnings report. It seems markets were more concerned about TSMC’s reduced growth outlook for the global semiconductor industry, despite the firm’s forecasts that its Q2 sales may rise by as much as 30% amid increasing demand for the semiconductors used in AI applications. As smartphone and personal computing markets remain weak, decreased demand for consumer electronics looks set to dampen the chip sector’s gains from the AI revolution.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [260%]( The rally in India-based Zomato’s (ZOMATO, NSE) stock price since April 2023. The price surge prompted analysts to revise their forecasts for the food discovery app upwards. - [9]( The number of hours that nine Google (GOOGL, Nasdaq) employees protested in Google Cloud CEO Thomas Kurian’s office. The sit-in protest centered around Project Nimbus, Google and Amazon’s (AMZN, Nasdaq) joint US$1.2 billion contract to provide the Israeli government and military with cloud computing services. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. We’re going to need a bigger check: How much is a CEO worth to a company? Most of us probably wouldn’t say US$56 billion, but I suppose most CEOs aren’t like Elon Musk. Shareholders of Tesla (TSLA, Nasdaq) agreed to a pay package worth that staggering sum in 2018. But it has yet to be paid out to Musk after the deal prompted a lawsuit from a shareholder and was rejected by a Delaware judge this year. Now, Tesla is [asking shareholders]( to approve the compensation and the relocation of its corporate HQ to Texas. It seems like an odd time to award Musk a sum worth more than the gross domestic product of well over half of the world’s nations, given the 37% drop in Tesla’s stock price this year and the [job cuts]( that affected 10% of its global workforce. However, as with all things Musk, logic isn’t necessarily the arbiter of how things will go. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](.  [Saigon Summit 2024 : Charting Vietnam’s Tech Future on May 30]( We know that fundraising is a daunting task. So let us take the stress and guesswork out of the process and turn it into a rewarding experience by opening doors to the right investors at Investor Hour. It’s time to convince them that investing in your startup isn’t a smart move - it’s the smartest one. [Sign up before May 3 to secure your slot!]( [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25]( Fintech and travel tech enthusiasts, this one's for you! Join us at the Tech in Asia Conference in KL to hear from Tonik Bank, CrescentRating & HalalTrip as they share their expertise and insights. Don't miss out - [purchase your tickets]( today! [Product Development Conference (Jakarta, 25-26 June 2024)]( In this edition of Tech in Asia’s flagship conference for product talent, get access to keynote presentations, interactive Q&As, and networking opportunities that help you to build, launch, and scale world-class products. Early-bird tickets are gone, but fear not—you can now grab first-release tickets at 50% off! Better yet, bring 2 friends and secure an extra 20% off. [Secure your spot now.]( [Tech in Asia’s Founders Meetup in Singapore on April 24]( We took the best of our 2023 Founders Meetup series and injected it into our all-new agenda this year. But don’t just take our word for it - join us at Hopscotch on April 24 to experience the excitement firsthand. P.S. We’re just getting started. We’re hosting many other Founders Meetups this year, so [stay tuned]( [Tech in Asia’s Founders Meetup in Vietnam on May 30]( Founders Meetup is returning to Vietnam as part of the official closing party of Saigon Summit! Unwind and connect with founders, startup leaders, and investors from across the region at this premier networking mixer. Early bird tickets are fully redeemed – [get yours at US$12 now!]( That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894