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.
2012 GMT - Sandisk's shift toward long-term supply agreements underscores the long-term centrality of memory technology to the artificial-intelligence buildout, Morgan Stanley analysts write in a note. Yes, there are questions about the enforceability of the agreements, although the new structure of the contracts suggests that enforceability will be strong, they write. "But the more important aspect of the LTAs is that they are proof points of what our anecdotal evidence suggests, that customers see memory supply shortages as not just challenging, but getting more challenging over multiple years." Sandisk's deals ought to improve multiples in memory, they add. (elias.schisgall@wsj.com)
1943 GMT - Sandisk is likely to be able to exceed its 2Q guidance given strong pricing trends for memory technology, but the company's shift toward long-term supply agreements raises questions about whether it's taking full advantage ofpricing opportunities, Wedbush analysts write in a note. "Ultimately how one feels about the value of and ultimate sustainability of the new LTAs, vs. Sandisk's seemingly lost opportunity to push higher pricing right now, is going to dictate how one feels about SNDK's results," they write. "We aren't yet sure how this new set of LTAs will play out and likely will have to better understand the mechanics (details from our checks to date have been relatively sparse) to have a stronger opinion." Sandisk is up 5.1%. (elias.schisgall@wsj.com)
1814 GMT - Shopify, which is slated to report 1Q results next week, appears poised for faster growth helped by strong third-party data and healthy U.S. ecommerce trends, according to Morgan Stanley in a note. The analysts say the recent 3P data support solid fundamentals and come alongside "moderating concerns on agentic commerce-related bear cases." The analysts add that although heightened geopolitical stress has weighed on consumer sentiment, "US eCommerce demand continues to look healthy with Q1 non-store sales growth remaining durable throughout the quarter." Shopify is up 4.7% to C$172.62, but down 22% year-to-date. (adriano.marchese@wsj.com)
Western Digital posted a strong quarter, Morgan Stanley analysts write in a note, but the company's guide for margins in the current quarter disappointed buyside analysts after fellow hard-drive maker Seagate Technology Holdings posted "blowout" results earlier this week. "We believe this reflects [management] conservatism ... and nothing else, and expect this dip to get quickly bought because WDC's long-term strong very much remains intact," the analysts write. Though they are bullish on both stocks, they have a preference for Seagate, where the near-term results suggest larger margin expansion. Western Digital falls 1.4%; Seagate rises 5.5%. (elias.schisgall@wsj.com)
1730 GMT - Apple's 2Q results are good enough to set the stock up for outperformance heading toward the September launch of the foldable iPhone, Morgan Stanley analysts write in a note, raising their price target to $330. Revenue growth is accelerating as the company undergoes several product cycles, and Apple's 2Q margins and 3Q guidance build confidence about its ability to grapple with cost inflation, the analysts write. The foldable iPhone launch and the WWDC conference also create room for upside, they add. Shares are up 4.4%. (elias.schisgall@wsj.com)
1728 GMT - Apple's finance chief, Kevan Parekh, seemed to signal that the company is no longer formally targeting reaching net cash neutral, in what appears to Morgan Stanley analysts as a break from the company's practice over the last several years. Though Parekh said that the net cash neutral target was still an attractive path, the shift signals more flexibility for the balance sheet. Still, the analysts note, signals point to dividend growth and buybacks continuing to follow a similar pattern to before. "That leaves us pondering - what could Apple be signaling? We're not entirely sure, but if it's not dividends, buybacks, or reinvestment, could Apple be signaling a potentially greater appetite for M&A or outside investment?" they write. "There's a reason Apple is messaging greater capital structure flexibility - we're just not entirely sure why… yet." (elias.schisgall@wsj.com)
1721 GMT - Apple's 2Q results showed that the company has managed to largely absorb the rising memory costs, UBS analysts write in a note. A consolidated gross margin of 49.3% and a product gross margin of 38.7%, both above the bank's estimates, are strong showings given the memory backdrop, they write. The company's guidance for margins, slightly above UBS estimates, highlights "the strength of the supply chain and ability to navigate one of the most challenging memory backdrops we can recall," the analysts write. (elias.schisgall@wsj.com)
1423 GMT - Roblox's age verification rollout will hurt growth in coming quarters with a large portion of users still unverified, say UBS analysts, who cut the price target to $49 from $74. Shares fall 18% in early trading. "We see a transition period in the coming quarters with 49% of global users still remaining unverified (including 35% in the U.S.) vs. 55% last quarter," the analysts say. That, in addition to experimentation with the discovery algorithm and homepages could cause user friction. "That said, we believe changes are supportive of long-term platform health and model re-accelerating growth in '27+," the analysts say. (nicholas.miller@wsj.com)
1413 GMT - Rivian not introducing its Gen 3 platform until early 2027 poses a significant risk for near-term demand, say Morgan Stanley analysts. Autonomous optionality is core value proposition of battery electric vehicles and the delay of the most advanced autonomy platform could hurt customer interest for now, the analysts say. "The decision to tier the hardware sensor suite introduces an 'upper-bound' to autonomous capabilities on earlier generation vehicles…potentially driving more customers to wait for the next gen product," they say. That could hurt demand for both the company's R1 and R2 cars, extending the path to profitability.(nicholas.miller@wsj.com)
1320 GMT - Reddit reported solid 1Q results, Davidson analyst Wyatt Swanson says in a research note, citing continued strength and broad-based momentum in the business. He points to advertising revenue--which grew 74% year-over-year--and active advertisers--which grew more than 75%--as pillars of strength. Overall revenue topped Wall Street's expectations and offset softer user-growth metrics, Swanson says. While those user-growth metrics still came in ahead of estimates, the beat was by a smaller margin than the company has observed over the past three quarters. Reddit surges 15% premarket.(connor.hart@wsj.com)
1212 GMT - Cboe Global Markets listed prediction markets as one of its top investment priorities as it reallocates cash following a 20% workforce reduction. CEO Craig Donohue says "financial and economic event markets" are among the "emerging areas" where the company would like to invest more resources following the job cuts, which are set to reduce operating costs this year. Cboe debuted a new prediction markets framework in March. Unlike most prediction markets platforms where users can place money on either "yes" or "no" outcomes, Cboe's patent-pending framework lets users pick between three payout options. (katherine.hamilton@wsj.com)
1140 GMT - Bitcoin rises as U.S. stock futures point to further gains on Wall Street in opening trade after a strong end to April. The S&P 500 and Nasdaq closed April with their largest monthly gains since 2020 as upbeat corporate earnings and renewed demand for tech stocks mitigated concerns about the Iran war. Apple is the latest company to add to the rally with its shares rising in pre-market trade after posting stronger-than-expected sales. However, uncertainty over the Iran war limits bitcoin's gains, keeping it range-bound and below the key $80,000 level. Bitcoin rises 1.1% to $77,270, LSEG data show. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
May 02, 2026 04:20 ET (08:20 GMT)
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