International News 09 January 2025
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Tencent makes biggest share buyback since 2006 after being blacklisted by the US
Tencent, China's largest technology company, has conducted a major share buyback in response to being blacklisted by the US due to alleged links to the Chinese military. The buyback of 3.93 million shares, the largest in decades, is part of Tencent's strategy to enhance shareholder returns and mitigate the impact of the US blacklisting. However, despite this initiative, Tencent's shares experienced a 7.3% decline on the same day. The company has strongly refuted the allegations made by the US government and has expressed its openness to collaborating with the US Department of Defense to address any potential misunderstandings. This underscores the gravity of the situation for Tencent, as it endeavours to rebuild market confidence and address the repercussions of the US blacklisting.
Amazon Web Service (AWS) will invest US$ 11 billion to strengthen infrastructure
Amazon Web Services (AWS) has announced its intention to invest approximately $11 billion in Georgia, with a view to expanding its infrastructure and supporting cloud and artificial intelligence (AI) technologies. This investment is expected to generate hundreds of employment opportunities and consolidate Georgia's status as a centre for digital innovation. Amazon anticipates generating employment opportunities for 550 individuals. The growing demand for AI and cloud technologies has led to a significant increase in electricity consumption, as AI data centres require substantial energy. According to an analysis by the Electric Power Research Institute, data centres in the US may consume up to 9% of the total electricity generated by the end of the decade. In order to address this demand, Amazon has entered into agreements with US utility companies, such as Talen Energy and Entergy, to supply electricity to its data centres across the country.
Bank of America Downgrades Tesla Stock to Neutral from Buy
Bank of America's John Murphy has downgraded Tesla's stock to Neutral from Buy, stating that the company's upside potential has already been reflected in the current price. Tesla's stock has appreciated by over 60% since the company's stock rating upgrade in April last year, with a notable surge following President Donald Trump's election victory in November. Despite the downgrade, Murphy has increased his price target on Tesla shares to US$490 from US$400. However, Murphy emphasises that there is still a high execution risk for Tesla and that the stock already reflects most of the company's long-term potential, including the core car segment, robotaxi, Optimus, and renewable energy and storage. Murphy's analysis suggests that Tesla has the potential to achieve a 5% global car market share in the long term, positioning it as one of the top 10 car manufacturers worldwide.