HSBC, Europe’s largest lender, has announced a share buyback of up to $2 billion after posting a 6.5% increase in annual pre-tax profit, largely driven by the sale of its Canadian banking business.

However, the bank’s revenue slightly declined, and its earnings fell short of analyst expectations.

For the full year, HSBC reported:

• Pre-tax profit: $32.31 billion (vs. $32.63 billion expected)
• Revenue: $65.85 billion (vs. $66.52 billion expected)

Although pre-tax profit missed estimates compiled by LSEG, it surpassed the bank’s internal consensus forecast of $31.67 billion.

Revenue declined slightly from $66.1 billion in 2023.

In the fourth quarter, HSBC’s pre-tax profit nearly doubled to $2.3 billion, recovering from a $3 billion impairment charge in the same period last year.

However, quarterly revenue fell 11% to $2.3 billion.

HSBC expects to complete the $2 billion share buyback by the end of the first quarter of 2025.

The bank also plans to cut annual costs by $1.5 billion by 2026 as part of its broader restructuring strategy.

Under CEO Georges Elhedery, who took over in July 2023 following the retirement of Noel Quinn, HSBC has been streamlining its operations.

In October, the bank announced plans to restructure into four divisions, splitting operations into “Eastern markets” and “Western markets” to enhance efficiency and focus.

According to Bloomberg, the management will announce more job cuts, mostly in its investment bank division. Some of these cuts, mostly in Asia, have already started, but the company expects to supercharge them in the next few months.

Management has already taken further action to improve efficiency. It has reduced its management committee and combined its commercial and global banking divisions.

These actions are on top of the management’s other actions in the past few years, including exiting unprofitable markets. HSBC has exited top countries like Canada, the United States, Argentina, and France. 

The bank expects the reorganization to generate approximately $300 million in cost savings in 2025.

HSBC projects net interest income of $42 billion for 2025, down from $43.7 billion in 2024, reflecting challenges in the global banking environment.

The bank’s Hong Kong-listed shares dipped 0.29% following the earnings release.

With its latest buyback and ongoing cost-cutting measures, HSBC aims to enhance shareholder value while navigating an evolving financial landscape.

Should you buy HSBC stock?

HSBC’s share price remains in a strong bull market and is hovering at its all-time high.

HSBC stock has risen in the last three straight weeks and by almost 300% from its lowest level in 2020.

So, what next for the HSBC stock price?

The weekly chart shows that the HSBC stock price has been in a strong uptrend in the past few months. It recently moved above the upper side of the ascending channel shown in black. 

HSBC stock has moved above the 50-week Exponential Moving Average (EMA). Further, the Relative Strength Index (RSI) has moved to the overbought level of 85, the highest swing in years. That is a sign that it has become highly overbought. 

The Percentage Price Oscillator (PPO) has also jumped to the highest point in years. Therefore, the stock may see a brief pullback and retest the upper side of the ascending channel. That retreat will be part of a break-and-retest pattern, a popular continuation sign. In the long-term, the HSBC share price will jump and get to 1,000p.

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Asian markets traded mixed on Wednesday as investors reacted to US President Donald Trump’s proposal to impose 25% tariffs on imports of autos, semiconductors, and pharmaceutical goods.

Concerns over trade tensions weighed on sentiment, while policy moves in New Zealand and Australia influenced regional markets.

Meanwhile, Chinese economic data and corporate earnings reports from major banks and tech firms added to market volatility.

Asian markets react to trade tensions and economic data

Japan’s Nikkei 225 declined 0.38%, while the broader Topix index slipped 0.31%, as a widening trade deficit weighed on investor sentiment.

However, the latest Reuters Tankan poll showed improving business sentiment among Japanese manufacturers, with the index rising to +3, the highest level since November.

South Korea’s Kospi surged 1.83%, while the Kosdaq added 0.62%, supported by gains in chipmakers.

In China, the CSI 300 index rose 0.42% in choppy trade, while Hong Kong’s Hang Seng index edged down 0.33%.

In India, stocks rebounded, with the Nifty 50 gaining 0.21% and the BSE Sensex rising 0.38%, snapping a recent losing streak.

Australia’s S&P/ASX 200 fell 0.73% to 8,419.20, a day after the Reserve Bank of Australia (RBA) cut interest rates by 25 basis points to 4.10%, marking its first rate cut since November 2020.

New Zealand cuts rates again as economy slows

The Reserve Bank of New Zealand (RBNZ) slashed interest rates by 50 basis points to 3.75%, marking its fourth consecutive rate cut.

The move was widely expected, as inflation continues to ease and economic growth slows.

The New Zealand dollar weakened 0.33% to $0.5719 against the US dollar following the announcement.

New Zealand’s inflation rate stood at 2.2% in Q4 2024, with price growth slowing for seven of the last eight quarters, according to LSEG data.

Wall Street sets new records as energy stocks lead gains

Overnight, U.S. markets ended higher, with the S&P 500 closing at a record 6,129.58, after briefly touching an intraday high of 6,129.63.

The Nasdaq Composite added 0.07% to 20,041.26, while the Dow Jones Industrial Average edged up 10 points to 44,556.34.

The energy sector was the best-performing segment in the S&P 500, rising 1.9%, while tech stocks also saw gains.

Samsung, SK Hynix gain on South Korea’s chip tax credit boost

Shares of Samsung Electronics and SK Hynix climbed 3.16% and 4.29%, respectively, after reports indicated that South Korea’s K-Chips Act could raise investment tax credit rates for semiconductor firms.

The tax credit for large- and medium-sized enterprises is expected to increase from 15% to 20%, while small- and medium-sized firms may see their rate rise from 25% to 30%, according to Business Korea.

Samsung is expected to benefit significantly as it continues developing its NRD-K R&D complex at its Giheung Campus.

HSBC announces $2 billion share buyback as profits rise

Europe’s largest lender, HSBC, announced a $2 billion share buyback after reporting a 6.5% rise in annual pre-tax profit, driven by the sale of its Canadian banking business.

The bank’s full-year revenue came in at $65.85 billion, slightly lower than the $66.1 billion recorded in 2023.

Q4 profit before tax nearly doubled to $2.3 billion, as last year’s $3 billion impairment charge no longer weighed on results.

HSBC expects to complete the share buyback by the end of Q1 2025.

The bank also announced plans to cut costs by $1.5 billion annually by the end of 2026.

National Australia Bank falls 8% on weak earnings

Shares of National Australia Bank (NAB) dropped 8.63% after reporting weaker-than-expected first-quarter earnings.

The lender’s cash earnings for the three months ending December 31 fell to AU$1.74 billion ($1.11 billion), a 2% decline compared to the previous quarter.

NAB’s performance was hit by lower margins and rising credit impairments, as more borrowers struggled to meet repayments.

China’s property sector still weak

China’s new home prices fell 5% year-on-year in January, slightly better than the 5.3% decline in December.

However, prices remained unchanged month-on-month, signaling that the country’s prolonged real estate downturn is far from over.

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EV charging stocks should be thriving this year as the number of electric vehicles in the United States jump. Americans bought about 1.4 million EVs in 2024, a trend that may keep growing in the coming years. Cox Automotive anticipates that EV sales will total about 10% of all vehicle sales this year.

EV charging stocks have plunged

However, the three most prominent EV stocks have plunged. EVgo stock price has crashed by over 66% from its highest level in 2024 and by 87% from its all-time high. Similarly, Blink Charging has become a penny stock as it crashed from over $64 in 2021 to $1.10 today.

Like Blink Charging, ChargePoint’s stock price plunged from $50 in 2021 to $0.83 today. These firms have crashed due to the high cost of deploying charging infrastructure, depreciation, and continued loss-making. 

Investors have been irked by dilution, especially by ChargePoint, a company that issued a going concern in 2023. All these three stocks have become bargains, but one of them, EVgo seems like a real winner. Let’s explore why EVgo stock price may rebound soon.

Read more: 3 reasons why the EVgo stock price may surge 160% soon

EVgo business is doing well

EVgo is one of the best EV charging stocks to buy, thanks to its growing market share, partnerships, and its focus on profitability. 

Its business has attracted over 1.2 million customer accounts who use its 1,100 locations each year. This is a strong figure for a company that was started a few years ago. Its network throughput has jumped from just 26 GWH to 247 GHW at the end of last year.

EVgo’s business is doing well as its evenue rose by 92% in the third quarter to $67.5 million. Its charging network revenue rose by 98% to $43.1 million.

Wall Street analysts believe that the company’s business will continue doing well and generating substantial revenue. The average revenue estimate for its fourth quarter to come in at $69 million, representing a 38% annual growth rate. 

This growth rate means that EVgo’s annual revenue will be $258.6 million, followed by $361 million in the next financial year. 

EVgo hopes that its business will more than triple by 2030. It will achieve that using a Department of Energy (DoE) loan of over $1 billion that it received from the Joe Biden administration. 

The company also has a partnership with General Motors. It expanded its partnership in September last year, a move that will see the two deploying 400 fast charging stores at flagship destinations in major metropolitan areas. These stations will have 350kW chargers, security cameras, and lightings. 

A key concern that has affected most EV stocks is dilution. EVgo ended the last quarter with about $153 million in cash and equivalents. While those funds are not enough, the DoE loan will help it prevent more dilution in the future. 

Read more: Tesla dubbed ‘the best stock to short’ in 2025

EVgo stock price technicals point to a rebound 

The daily chart shows that the EVgo share price has plummeted in the past few months, moving from a high of $9.05 in October to $3 today. It has moved below the crucial support at $3.22, the 78.2% Fibonacci Retracement level.

The stock has also formed a death cross pattern, a highly popular bearish sign in the market. All these are signs that the stock may keep falling. 

On the positive side, EVgo stock price has formed a falling wedge chart pattern, a popular bullish reversal sign. This pattern comprises of two falling and converging trendlines. 

Therefore, one can make a contrarian case for the EVgo stock price. The next potential catalyst for the stock is its earnings, which are set to happen on March 7. 

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Electric Vertical Take-Off and Landing (eVTOL) stocks have done well in the last 12 months as investors anticipate their certification and cheer their fundraising from top blue-chip companies. Archer Aviation stock price has soared by 100%, while Joby Aviation is up by about 20%. So, which is a better investment between the two companies?

Why Archer Aviation and Joby stocks have soared 

Archer Aviation and Joby Aviation are the two biggest companies the eVTOL industry with a market cap of $5.8 billion and $6 billion. 

These firms are building aircraft that will mostly be used in urban centers and by the Department of Defense. 

Archer Aviation is building the Midnight plane that will offer air taxi services in major cities. It can sit up to four passengers and have a range of about 100 miles. Its top speed will be about 150 miles a hour. 

Joby Aviation is building the S4 plane with a range of about 150 miles and a speed of 200 mph.

ACHR and JOBY stock prices have surged in the past few months after they made substantial progress on their development and certifications. Joby Aviation has already received numerous certifications, including the Repair Station Certificate and have done the first three stages of the FAA certification.

Archer Aviation has also received some certificates. The two companies hope to receive full certification later this year and then start commercialization immediately. Analysts believe that these firms are in the pole position for an industry that is expected to see strong demand. 

Read more: Joby Aviation stock price has soared: is it too late to buy?

Studies estimated that the eVTOL aircraft market size was valued at $1.2 billion in 2023, a figure that will get to $23.4 billion in 2030. Other studies have estimated that the eVTOL industry will be bigger than that, with one of them predicting that it will get to $170 billion by 2034.

Therefore, if these estimates are correct, it means that Joby and Archer will be the most dominant players in the industry. Historically, early movers usually do better than those who are playing catch up.

However, the risk is that the industry may not do all that well as analysts estimate since their predictions are based on assumptions. 

JOBY and ACHR balance sheets

The JOBY and ACHR stocks have soared because of improvements in their balance sheets. As pre-revenue companies, the biggest concern among investors is that of dilution, which happens when a company raises cash by selling shares. 

The two companies have been highly dilutive. Archer Aviation’s outstanding shares jumped from 50 million in 2020 to 383 million today. Similarly, Joby’s outstanding shares have soared from 69 million in 2021 to 717 million today.

Archer Aviation worked to handle its balance sheet last year as it raised cash from Stellantis, the parent company of Jeep and Chrysler. As part of the deal, Stellantis pledged to fund Archer’s manufacturing in exchange for quarterly share distributions. 

Joby Aviation also received funding from Toyota, a company known for its expertise in manufacturing.

JOBY vs Archer Aviation: Better eVTOL stock to buy?

At this point, it is relatively difficult to give a better estimate on the better buy between the two companies. In a statement to Invezz, a Barclays analyst said:

“Archer Aviation and Joby Aviation are market leaders in an industry with an unknown potential. They have invested robustly and are hoping to dominate the eVTOL industry. If they are successful, the two companies may become big players just as Tesla did in the EV industry. The key phrase here is if. There’s also a chance that the industry will not do well as analysts anticipate.”

The analyst recommends that investors buy a small piece of the two companies since it is hard to separate them now. These investors will benefit if the two firms become the next Tesla. They will not lose much if they fail.

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China is making a serious push to lead the world in technology.

From artificial intelligence and electric vehicles to semiconductors and renewable energy, the country is accelerating its efforts to outpace the West. 

President Xi Jinping’s meeting with top business leaders is a statement to the West that Beijing is changing its approach.

The once heavily scrutinized private sector is now being encouraged. 

Does China have a chance of becoming the global tech leader? 

Is China building the next AI empire?

Artificial intelligence is at the center of China’s strategy.

The rise of DeepSeek, a large language model developed without the latest American chips, has truly shaken the industry.

It has shown that China can innovate despite US sanctions. 

Chinese AI firms now file more patents than any other country.

Tencent and Alibaba are integrating AI into their platforms, while Huawei is developing its semiconductor solutions.

The government is pouring billions into AI research, and state-backed firms are advancing quantum computing at a pace that rivals the US.

The numbers support the trend. According to the World Intellectual Property Organization, China accounted for almost half of global AI patent filings in 2023.

While the US still leads in AI infrastructure, China is proving that it can develop competitive alternatives.

DeepSeek’s emergence is reminiscent of Alibaba’s 2014 IPO, which triggered a boom in Chinese consumer-tech innovation.

If AI follows a similar trajectory, China could dominate the next generation of digital applications.

A new king of electric vehicles?

The auto industry is transforming, and China is leading the way.

In 2023, China became the world’s largest exporter of electric vehicles, overtaking Japan.

BYD, the country’s top EV maker, sold more cars than Tesla in the fourth quarter of 2023.

This was unthinkable a few years ago.

Batteries are a key reason for this success.

China produces over 80% of the world’s EV batteries, with companies like CATL and BYD at the forefront.

The country also dominates the supply chain for lithium, cobalt, and nickel, key materials for battery production. 

While Western automakers struggle with costs and infrastructure, China has scaled up production and cut prices.

The result was a flood of affordable EVs hitting global markets, particularly in Europe and Southeast Asia.

However, the West is pushing back. The US and the EU are considering tariffs to slow down Chinese EV imports.

Meanwhile, local subsidies in the US are driving domestic battery production. But China isn’t going to slow down that easily.

Xi Jinping’s change in strategy

In 2020, China’s tech giants were under attack. Jack Ma, once the face of Chinese innovation, disappeared from public view after criticizing regulators.

Alibaba’s fintech arm, Ant Group, had its $34 billion IPO canceled. 

Beijing cracked down on ride-hailing, gaming, and education firms, wiping billions off the stock market.

The private sector got the message: growth was welcome, but power was not.

But Xi Jinping’s recent meeting with business leaders, including Ma and Huawei’s Ren Zhengfei, was designed to restore confidence. He promised fewer regulatory fines and a fairer market for private firms. 

This is a calculated move. China’s economy is slowing, and private investment has been declining. By reassuring entrepreneurs, Xi hopes to stabilize business sentiment.

However, the old rules still apply. The government wants the private sector to thrive, but only within state-approved boundaries.

Entrepreneurs must serve national goals, such as AI development and advanced manufacturing. The era of unchecked private tech empires is over.

Is China finally breaking free from Western tech?

For years, China relied on the West for semiconductors and high-tech components.

US sanctions aimed to cut off its access to advanced chips. Many expected China to struggle.

But Huawei’s latest smartphone, powered by a domestically developed 7nm chip, shocked industry experts.

This suggests China is making progress in chip manufacturing, despite restrictions.

Even though China can produce mid-range chips, they are still years behind in high-end semiconductor fabrication.

The US, Japan, and the Netherlands control the most advanced chipmaking equipment, and export restrictions are limiting China’s access.

To counter this, Beijing has poured over $100 billion into its domestic semiconductor industry, with the clear goal of achieving complete tech independence from the West.

Western firms, meanwhile, are doubling down. The US is investing heavily in domestic chip production, with a $52 billion CHIPS Act designed to ensure American leadership. Europe is also boosting semiconductor funding.

Will China become the world’s tech leader?

China is making a serious play for global tech dominance.

Its government is directing vast resources into AI, EVs, and semiconductors.

Its companies are innovating despite Western sanctions. And its economic mode, the so-called “state-backed capitalism”, gives it the ability to push forward long-term strategies.

However, it won’t be an easy task. The West is actively working to curb China’s rise, limiting access to critical technologies.

Domestic challenges, such as a weakening property market and reluctant investors could slow progress.

And while China excels in scaling production, it still lags in cutting-edge breakthroughs.

The next decade will determine whether China can fully break free from Western tech dependence and take the lead.

If its progress in AI, EVs, and chips continues at this pace, it won’t just be catching up, but it will be setting the new global standard.

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Delaware, a state known for its favorable corporate laws, has proposed a significant change that could reshape the relationship between corporate boards and shareholders.

This new bill aims to limit shareholder lawsuits, especially after several prominent companies, including Meta Platforms and Dropbox, have hinted at moving their legal incorporation out of Delaware.

Here’s a breakdown of the bill and its potential implications.

Why is the bill being proposed?

Delaware’s corporate law governs the relationship between company boards and shareholders for two-thirds of S&P 500 companies.

This makes the state a hub for corporate incorporations, with businesses attracted to its well-established courts and stable laws.

However, recent high-profile cases involving companies like Meta and Dropbox, as well as tensions with the Delaware judiciary, have prompted some businesses to consider relocating their incorporation to states like Texas, which has created its business court.

According to Delaware state Senator Bryan Townsend, a Democrat, the bill is being introduced in response to growing concerns about shareholder litigation and competition from other states, Reuters reported.

Townsend notes that some jurisdictions are gaining traction as legitimate alternatives to Delaware’s corporate law.

Key provisions of the new bill

1. Limiting shareholder lawsuits: The bill would take steps to protect directors and controlling shareholders from legal action related to alleged conflicts of interest. This would include reducing the scope of internal records shareholders can access, which are often used to build cases against corporate boards.
2. Reducing shareholder access to records: Shareholders would face more restrictions when trying to access internal company records, potentially making it more difficult to gather evidence for litigation.
3. Protection for directors: The proposed law would help shield company directors and controlling shareholders from liability in certain situations, particularly those related to conflict-of-interest claims.

Delaware bill: a response to recent legal challenges

The bill comes on the heels of several controversial rulings in Delaware’s Court of Chancery, which have held controlling shareholders liable for deals that were previously thought to be properly structured.

This has led to criticism that the state is becoming too favorable to shareholder lawyers, particularly in cases where corporate leaders lose costly lawsuits.

Notably, Elon Musk has been an outspoken critic of Delaware’s judiciary, particularly after a Chancery judge ordered the rescinding of his $56 billion pay package from Tesla.

Musk’s companies, Tesla and SpaceX, have since moved their incorporation from Delaware to Texas.

Texas has created a business court aimed at competing with Delaware’s renowned Court of Chancery, attracting business moguls like Musk to its jurisdiction.

What impact will the bill have?

The bill could drastically change shareholder litigation in Delaware.

Experts are divided on its potential impact. Some argue that shareholder lawsuits are essential in preventing corporate abuses and holding boards accountable.

Others contend that these lawsuits are often ineffective, serving as a “tax” on companies without delivering meaningful benefits to shareholders.

Experts note that the bill would make shareholder litigation “dramatically less successful,” which could lead to fewer legal challenges for companies operating in Delaware.

However, she also points out that federal securities regulations, under the administration of Republican President Donald Trump, could further restrict institutional investors’ ability to influence corporate boards, reducing the effectiveness of the litigation mechanism altogether.

The bill is still under review, and Delaware lawmakers are moving quickly to push it forward.

Delaware Governor Matt Meyer, a Democrat, has voiced his support for the bill, but it remains to be seen how this will play out in the coming months.

As corporate leaders continue to weigh the benefits of incorporating in Delaware versus other states, this legislation could mark a shift in how the state governs corporate law.

Delaware’s reputation as a corporate haven may be tested, and businesses may find new opportunities to structure their operations in more favorable legal environments.

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