The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1607 ET - Pinterest reports increased revenue and a narrower loss for the March-ended quarter, results that beat analysts' expectations. The social-media company says revenue rose 23% from a year earlier to $740 million. The company's loss was $25 million, down from a loss of $208 million a year ago. Analysts polled by FactSet were expecting $700 million in revenue and a loss of $65 million. Pinterest guided for 2Q revenue in the range of $835 million to $850 million, while analysts are looking for$827 million. (sarah.needleman@wsj.com)
1544 ET - Bidders can start lining up for the Telegraph Media Group as RedBird IMI, the joint venture between private-equity firm RedBird Capital Partners and International Media Investments and led by former CNN boss Jeff Zucker, plans to sell the publisher of the Telegraph newspaper and Spectator magazine. RedBird IMI formally abandons its attempt to buy the publications outright, after taking control of the group late last year by paying off loans owed by the Barclay family. The bid prompted an uproar and a government review. IMI's backers include a member of the Abu Dhabi royal family. A pending ban on ownership of a British newspaper by a foreign government would prohibit the venture from owning the publications, RedBird IMI says. The venture says it holds GBP600 million ($753.8 million) of debt tied to the properties. (ted.bunker@wsj.com)
Analysts expect Amazon made $8.95 billion in profit from January through March, up from $3.17 billion in the same period a year earlier. "Amazon Expected to Report Record Q1 Sales -- Market Talk," published at 9:36 a.m. ET incorrectly said analysts expect Amazon made $8.95 billion in profit from April to June.
1300 ET - Roku's partnership with The Trade Desk will take time to ramp, meaning its financial impact is likely to be felt in 4Q/2025, analysts at J.P. Morgan say in a research note. The streaming-service provider says its partnership with the global advertising technology company will equip advertisers with "better planning, buying and measurement of TV streaming media." The analysts note that Roku inventory is already on TTD, with the incremental announcement today being the data Roku shares with TTD. The new data sharing partnership provides advertisers purchasing Roku inventory through TTD with more targeting capabilities than before, and importantly makes Roku inventory more competitive with other streaming inventory available on TTD. (denny.jacob@wsj.com; @pennedbyden)
1252 ET - Renters have seen some relief over the past few months. Rents declined in March for the eighth consecutive month, with year-over-year prices dropping by 0.3%, according to Realtor.com. Even so, the median rent of $1,722 was only $36 less than the peak seen in August 2022, and was $313 more than in March 2019, before the pandemic, pointing to a resilient rental market. Rising shelter costs have been a major driver of overall inflation, a top concern for the Fed as it meets this week, Realtor.com says, but expects cost pressures to continue as interest rates remain high and would-be buyers opt to rent instead and keep demand high. In March, units of all sizes saw median rent declines, with studios showing the largest drop--1.4%--on a year-over-year basis, to $1,435. (chris.wack@wsj.com)
1242 ET - Private equity-backed businesses accounted for 14, or 70%, of the 20 corporate defaults recorded in the US during 1Q, while publicly traded companies represented the remaining six defaults, according to Moody's. "However, public companies restructured $16.8 billion in debt, slightly more than the $16.5B by private companies," the financial-services firm says. "Telecommunications stood out, with the highest defaulted dollar amount of any sector." Telecommunications companies that failed to pay their debts in 1Q included cloud-computing provider Rackspace Technology, which despite being publicly traded had a notable private-equity shareholder. Apollo owned an about 60% stake in the businesses by the time it restructured its debt in March, according to Moody's. (luis.garcia@wsj.com; @lhvgarcia)
1109 ET - IBM bumps up its quarterly dividend by a penny for a fifth straight year, raising it to $1.67 and maintaining the tech bellwether's status as a dividend aristocrat. The new dividend rate, equal to $6.68 a year, represents an annual yield of about 4% based on Tuesday's trading price. IBM's 29th consecutive annual dividend secures the company's spot it in the S&P 500 Dividend Aristocrats index, whose 67 members have paid out a higher dividend annually for at least 25 years. With more than 916.7 million shares outstanding, IBM shells out more than $6 billion in dividends a year. IBM down 0.9% to $166. (colin.kellaher@wsj.com)
1057 ET - Pinterest is expected to report 1Q results after the bell, and analysts polled by FactSet predict a sales rise of 16% to $700.3 million. They also see Pinterest's loss narrowing to $65 million versus $209 million in the same period a year earlier. At a March media and telecom conference, Pinterest CEO Bill Ready said the company has been using artificial intelligence to improve the user experience on its platform, which has helped increase engagement and boost its advertising business. Pinterest is up 1.1% to $34.10. (sarah.needleman@wsj.com; @saraheneedleman)
1043 ET - Paramount Global's latest results and lack of update regarding reports of a potential sale raises several questions, say analysts at BofA Securities in a research note. WSJ has reported on a proposed merger between the owner of CBS, MTV, Nickelodeon and the Paramount film studio and production company Skydance Media. Paramount on Monday also parted ways with CEO Bob Bakish. The analysts' unanswered questions include who is now making the strategic decisions at Paramount, what is the timing/terms of a potential sale, and what would the strategic direction of the company be if no deal takes place and current ownership remains in control. "Given the lack of transparency, we believe it is challenging to handicap the potential outcomes," they add. (denny.jacob@wsj.com; @pennedbyden)
0936 ET -- Amazon.com reports Q1s earnings after the bell. Analysts polled by FactSet predict sales rose 12% to $142.65 billion, which would be up from the 9% sales growth Amazon saw a year ago and a Q1 record for the company. Analysts expect Amazon made $8.95 billion in profit from January through March, up from $3.17 billion in the same period a year earlier. Amazon CEO Andy Jassy has significantly reoriented the company to focus on artificial-intelligence innovations. Earlier this month, in his annual letter to shareholders, he said generative AI may be the largest technology transformation since the cloud and perhaps since the Internet. But he also said Amazon remains committed to cost-cutting. (sarah.needleman@wsj.com; @saraheneedleman) Corrections & Amplifications
This was corrected at 1:28 p.m. ET because it incorrectly said analysts expect Amazon made $8.95 billion in profit from April to June. Analysts expect Amazon made $8.95 billion in profit from January through March, up from $3.17 billion in the same period a year earlier.
0505 ET - Informa's current share price doesn't reflect the company's multi-year growth sustainability, Berenberg analysts Carl Murdock-Smith and Usman Ghazi say. The events and business-intelligence company's revenue guidance for 2024 implies underlying growth of 7%-9%, while its medium-term ambition is to sustain 5%-plus revenue growth, the analysts write in a research note. The world digitalization, change in business-to-business buying behavior, and funding models are all catalysts that support Informa's long-term growth, as highlighted in the CEO's review in the annual report, the analysts add. Shares are up 0.4% at 801.60 pence. (najat.kantouar@wsj.com)
0210 ET - Singtel's stock-price correction looks like a buying opportunity, Maybank Research analyst Hussaini Saifee says in a research report after Monday's 2.5% drop. The fundamentals of subsidiary Optus have improved thanks to its agreement with TPG Telecom to create a regional multi-operator core network, the analyst says. Also, Singtel's impairment charges for 2H ended March are non-cash and thereby unlikely to affect dividends, the analyst says. Maybank forecasts Singtel's FY 2024-2027 earnings CAGR at 16% and sees potential for its dividend per share to grow together with earnings. Maybank raises the stock's target price to S$3.10 from S$3.05 and maintains a buy rating. Shares are 1.3% higher at S$2.38. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
April 30, 2024 16:50 ET (20:50 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments