Today’s lesson: Bet on more than one horse

Opening Bell 🔔 is Tech in Asia’s free newsletter, which brings you the biggest news and latest trends around publicly listed Asian 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](. Hello {NAME} “It is like watching a plane crash.” “Slow moving train wreck.” Though metaphors that describe the state of markets today vary, the sentiments remain the same. Geosphere Capital Management’s Arvind Sanger, who made the train wreck comparison, said in an interview that the current Nasdaq fall is [more worrying than the dot-com crash](. The companies falling today may have been market leaders for a decade or more, and the effect of their fall is likely to be profound, said Sanger. The plane crash comment, meanwhile, came from a tweet by the stock market’s very own Cassandra, Michael Burry, the investor and hedge fund manager who’s best known for being one of the first to call out the housing market crash in 2007 and 2008. He is the same Burry who is immortalized in The Big Short, both the book and movie. Burry, who goes by the name Cassandra on Twitter, after the Greek mythology priestess who was cursed to make true prophecies no one would believe, [deleted the tweet soon after]( it was posted on May 24. "It hurts, it is not fun, and I'm not smiling," he added. The investor is no stranger to making unnerving commentary on social media and has even previously described the market to be [“dancing on a knife’s edge.”]( Perhaps we should dedicate an edition of this newsletter to memorable metaphors used to describe the stock market. Regardless, there’s caution in the wind. The takeaway: make your bets on more than one horse. Image credit: Timmy Loen Take Tencent (0700, HKG) for instance. In a story [that dives deep]( into the Chinese tech giant’s gaming business in light of its lowest revenue growth since the firm went public in 2004, analysts say Tencent is likely to continue taking its deep pockets to Southeast Asia. Since 2018, for example, Tencent has made massive investments across the region, including in companies like Sea Group and Gojek. Similarly, after a decade of shining in the ride-hailing and food delivery segments in the region, Grab (GRAB, NDAQ) seems to be upping its focus on fintech, as Tech in Asia notes in a visual story [on Grab’s organizational structure.]( -- Nikita --------------------------------------------------------------- 4 STOCKS TO WATCH Hot stocks, earnings reports, restructuring, activist investor pressure, and more. We feature the stocks that are likely to make big moves during the week. Image credit: Timmy Loen 🇨🇳 Alibaba (BABA, NYSE): Amid the pressures brought about by strict zero-Covid measures in China, investors have gotten a breather, as Alibaba’s quarterly revenue rose by a better-than-expected 9%. Still, this was [the lowest quarterly growth]( for Alibaba since its listing in 2014. The company said it would not provide a forecast for the current fiscal year because Covid-19 risks clouded its outlook. While investors remain unsure about the company’s long-term prospects amid regulatory crackdowns on tech, [Beijing has recently expressed support]( for the sector, which may allay some fears. Here are five charts on [the company’s financial health.]( 🇸🇬 PropertyGuru (PGRU, NYSE): The online property platform’s total revenue grew by 42% in the first quarter of 2022. Its net loss increased to S$120.3 million (US$87.8 million), which the company attributes to accounting adjustments in relation to the business combination with Bridgetown 2 Holdings Limited. PropertyGuru [said it was on track]( to achieve the 2022 guidance of 44% year-on-year revenue growth and a return to a full-year positive adjusted EBITDA figure. Here are [five charts on the company’s]( financial health. 🇨🇳 Baidu (BIDU, NDAQ): While Baidu’s quarterly revenue ticked up 1% from the almost US$4.2 billion it posted a year ago, [its quarterly profit slipped 22%.](. This was despite the growth in its artificial intelligence cloud business. See [Baidu’s financial health in five charts here](. 🇮🇳 Zomato (ZOMT, NSE): While Zomato seems to have [stepped up efforts]( to provide investors with adequate information alongside its quarterly results, the food delivery major’s stock continues to languish below its issue price of 76 rupees (US$.98) apiece. --------------------------------------------------------------- 3 MARKET WHISPERS A lot more reliable than whispers, we highlight engaging source-based reporting from reputable news outlets around the globe. Photo credit: Didi 1️⃣ So long, New York: Public shareholders of ride-hailing platform Didi (DIDI, NYSE) have [voted in favor]( of delisting the Chinese firm from the New York Stock Exchange. The company, which has been under intense pressure from Chinese regulatory authorities for its business practices and use of customer data for nearly a year, plans to re-list in Hong Kong. While Didi Global has received a lifeline by delisting in the US, the company is [unlikely to see an uptick in fortunes]( as investigations into its business practices are still on and any penalties are yet to be decided. 2️⃣ Marketing wonder: Singapore-based data intelligence platform Near [plans to list on the Nasdaq]( through a merger with special purpose acquisition company KludeIn I Acquisition Corp. The merger will see the combined entity reach nearly US$1 billion in market capitalization. It’ll trade under the ticker “NIR.” The deal is expected to fetch US$268 million in gross proceeds, including a private placement of US$95 million. Near became Southeast Asia’s [most valuable marketing tech startup]( in 2019 following a fundraise of US$100 million. The company is moving its headquarters to Pasadena, California. 3️⃣ Timing it right? Indian hospitality chain Oyo is [shelving plans to go public]( till after September. The firm chose to delay its IPO until its financial performance improves and to dodge market volatility. The company had previously filed preliminary papers with stock market regulator Securities and Exchange Board of India in October 2021 to raise over US$1 million through an initial share sale. Now, Oyo is also looking to reduce its IPO valuation between US$7 billion to US$8 billion from its original target of US$11 billion. --------------------------------------------------------------- 2 EYE-POPPING FACTS Tech in Asia scours the internet to bring you the head-turning numbers from the world of business. - [US$360 billion]( – That’s how much Samsung (005930, KRX) plans to spend on chips and biotech over five years. The parent group for Samsung Electronics and Samsung Biologics has promised to create 80,000 jobs by 2026. These jobs are likely to be in semiconductors and biopharmaceuticals. - [1%]( That’s how much Airbnb’s (ABNB, NDAQ) operations in China contributed to the company’s total revenue. The home rental service is reportedly laying off 60 employees as it exits the country in July. Airbnb is the last remaining [large American internet business]( in China. --------------------------------------------------------------- THE 1 YOU DIDN'T SEE COMING We spotlight the unusual, not-your-everyday kind of story that has got everyone talking and social media buzzing over the past week. Metaverse to beat grim realities Image credit: Timmy Loen The sun doesn’t discriminate, and neither does inflation. Soaring prices have affected consumer tech platforms, and as fuel costs go up, companies like Grab (GRAB, NDAQ) and GoTo (GOTO, IDX) have to perform a delicate balancing act to keep their drivers, customers, investors, and the governments happy in Southeast Asia, as detailed in [this Tech in Asia story.]( Given all the economic doom and gloom in the air, it’s no surprise that some of us are taking a closer look at virtual worlds. Last week the Hang Seng Indexes Company, a private entity owned by Hong Kong’s Hang Seng Bank, launched the [China Metaverse Index]( to track the performance of 30 metaverse-related companies. The new index is “designed to help investors capture potential opportunities” that arise in the sector in the China and Hong Kong stock markets, said Daniel Wong, the director at Hang Seng Indexes Company. The index includes virtual reality, gaming, and other digital experiences, and it features companies like Tencent and NetEase, besides some Apple supplies. Since the announcement was made, at least three local governments in China - Guangzhou, Xiamen, and Hangzhou - [have introduced plans]( to incentivize homegrown metaverse firms. While this could boost the growth of local companies, [some opine]( that this index is a precursor to launching an exchange stranded fund that could feature Chinese tech firms exiting US exchanges. --------------------------------------------------------------- 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](. 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