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--------------------------------------------------------------- Â Written by Peter Cowan
 Journalist
 Hello {NAME} The science fiction writer Arthur C. Clarke had it right when he wrote that âany sufficiently advanced technology is indistinguishable from magic.â After all, how many of us can even explain how smartphones work? Some of you probably have a stronger grasp on it, but I think Iâm like most folks when something like ChatGPT enters the arena. We scratch our heads and go, âMust be magic.â Clarke could have also been talking about the stock markets - sometimes, it sure feels like they move at the behest of supernatural forces. Share prices go up, down, side to side, and few people can divine why. Take Grab (GRAB, Nasdaq), for example. Last week, the super app reported what it called a âstrong setâ of results for the fourth quarter of 2023, but its share price fell 8% in the trading session following the announcement. What gives? Shouldnât a company thatâs doing well perform better on the stock market? Luckily, my colleague Simon has a better handle on the vagaries of the market than most. In todayâs Big Story, he dives into the possible explanations for the discrepancy between Grabâs results and the market reaction. Spoiler alert: Magic is not a factor. -- Peter
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THE BIG STORY [Why Grabâs shares declined despite its âstrongâ Q4 results](
Grabâs shares have underperformed US-listed peers like Uber and DoorDash over the past year despite having similar growth prospects. ---------------------------------------------------------------
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3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1ï¸â£Â 1+1 = Sell to TikTok: Occamâs razor is a complex philosophical concept, but when broken down to its essence, it suggests that the simplest explanation is usually the best one. This could apply to GoToâs (GOTO, IDX) decision to give up a majority stake in its ecommerce arm, Tokopedia, to short-video app TikTok. GoTo CEO Patrick Walujo [attributed the move]( to a falling market share and âintenseâ competition in Indonesiaâs ecommerce space. Speaking at a public event on February 28, Walujo also cited the âvery large investmentâ needed for Tokopedia to compete with its well-funded rivals. Now, instead of waging a costly incentives war, GoTo gains a revenue stream from the TikTok deal. Tokopedia will also pay an ecommerce service fee thatâs an agreed-upon percentage of the combined firmâs gross merchandise value. 2ï¸â£Â Coupang goes Gucci gang: South Korean ecommerce platform Coupang (CPNG, NYSE) enjoyed a [bumper Q4 2023 result]( with net revenue hitting US$6.6 billion, a 23% year-on-year increase. Gross profit for the quarter also swelled 32% year-on-year to US$1.7 billion, with a gross profit margin of 25.6% - an improvement of 160 basis points. But its developing offerings segment, which includes its international offerings and fintech businesses, reported a negative adjusted [EBITDA]( of US$150 million in Q4 2023, jumping from -US$55 million in the same period the year before. Coupang is also planning an expansion into the [luxury goods]( segment following its acquisition of Farfetch, a UK-based luxury platform. 3ï¸â£Â Baidu by the numbers: More good tidings this earnings season for China-based tech major Baidu (BIDU, Nasdaq) which [reported]( a year-on-year increase in revenue and net profit in 2023. The firm raked in US$19 billion in revenue in 2023, up 9% from the year prior. Net income hit US$2.9 billion in 2023, up 169% from the previous year. This marked a turnaround from 2022, when net income fell 26% compared to 2021. In a sign of the times, Baidu is focusing more on generative AI and its AI chatbot service, Ernie. R&D costs for 2023 rose 4% year on year to US$3.4 billion, primarily due to higher server expenses to support these efforts.
 2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [100,000]( The number of vehicles VinFast (VFS, Nasdaq) hopes to deliver in 2024. The Vietnam-based maker of electric vehicles delivered 34,855 units last year. - [US$8.5 billion]( The value of the merger between Disneyâs (DIS, NYSE) Indian unit with local conglomerate Reliance Industries (RELIANCE, NSE). Not only will the move increase Relianceâs market share in the entertainment business, but it could also boost its advertising revenue. THE ONE YOU DIDN'T SEE COMING Blurb: We spotlight the story that had everyone talking and social media buzzing during the past week. Apples donât make for good wheels: Whatâs the longest youâve worked on a project only to see it scrapped? The answer is probably less than a decade, unless you worked on Appleâs (AAPL, Nasdaq) âProject Titanâ from the start. The tech titan has [reportedly halted]( its decade-long effort to build an electric car. The 2,000 employees who were working to bring the project to the roads will move to Appleâs generative AI division, which may be quite a gear shift for some of them. In typically magnanimous fashion, Tesla (TSLA, Nasdaq) CEO Elon Musk reacted to the demise of what could have been a rival by [posting]( salute and smoking emojis. Unfortunately, you do have to give it to Musk because he was right when he [warned]( Apple in 2015 that âcars are very complex compared to phones or smartwatches.â Thatâs 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](
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