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    The Bull Case For Tuya (TUYA) Could Change Following Its 10% Share Repurchase Authorization - Learn Why

    Simply Wall St·01/05/2026 07:17:23
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    • Tuya Inc. announced in December 2025 that it had begun a shareholder‑approved buyback program, allowing the repurchase of up to 60,972,194 shares, or 10% of its issued share capital, funded from legally available resources under its governing rules and applicable regulations.
    • An interesting angle is that this authorization sits against a share base of 609,721,949 shares as of June 2025, giving management considerable flexibility to adjust the capital structure and potentially influence per‑share financial metrics over time.
    • We’ll now examine how Tuya’s sizable share repurchase capacity may reshape its investment narrative built around AI‑driven IoT platform growth.

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    Tuya Investment Narrative Recap

    To own Tuya, you need to believe its AI driven IoT platform can keep gaining traction while the company manages hardware commoditization and global trade uncertainty. The new buyback authority mainly affects capital allocation optics rather than the core near term catalyst, which remains Tuya’s ability to sustain profitable growth after its recent move into the black. The biggest risk, in my view, is still pressure on pricing and margins as competition in global IoT intensifies.

    Among Tuya’s recent announcements, the Q3 2025 results stand out alongside the buyback. The company reported US$82.49 million in quarterly sales and US$14.97 million in net income, marking another period of profitability. That shift to consistent earnings gives the repurchase capacity more context, since any reduction in share count directly interacts with earnings per share, a metric many investors are watching as Tuya balances growth with exposure to cost sensitive hardware categories.

    Yet the real concern investors should be aware of is how intensifying IoT competition could squeeze Tuya’s margins and...

    Read the full narrative on Tuya (it's free!)

    Tuya's narrative projects $442.7 million revenue and $76.0 million earnings by 2028. This requires 11.6% yearly revenue growth and a $47.0 million earnings increase from $29.0 million today.

    Uncover how Tuya's forecasts yield a $3.32 fair value, a 52% upside to its current price.

    Exploring Other Perspectives

    TUYA 1-Year Stock Price Chart
    TUYA 1-Year Stock Price Chart

    Thirteen members of the Simply Wall St Community currently see Tuya’s fair value anywhere between US$2.11 and US$8.09, underscoring how far opinions can diverge. Against that spread, Tuya’s large unused buyback capacity and exposure to margin pressure from IoT competition give you several angles to weigh before deciding which of these viewpoints feels most realistic.

    Explore 13 other fair value estimates on Tuya - why the stock might be worth just $2.11!

    Build Your Own Tuya Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Tuya research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
    • Our free Tuya research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tuya's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.