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.
1143 ET - BNP Paribas analysts are skeptical that a merger between Tesla and SpaceX is on the table anytime soon. "We believe a potential SpaceX-Tesla merger is complicated by significant cash burn at both companies and meaningful regulatory risks," the analysts say in a research note. Improving investor sentiment around Tesla stemming from the merger speculation might be overly optimistic, they say, maintaining their underperform rating and $280 price target. "We fear [Tesla] will face daunting KPIs at its Robotaxi and Optimus businesses over the next two years, bringing downside risk to core operations before any SpaceX merger could realistically materialize," the analysts write. (connor.hart@wsj.com)
1108 ET - Snap's fast-growing subscription business isn't enough to offset the challenges weighing on the social-media company, according to D.A. Davidson. The firm starts coverage with a neutral rating, arguing investors are likely to stay focused on sluggish North American engagement, muted ad-revenue growth and the hefty investment needed to launch Snap's new Specs augmented-reality glasses. The broker sees subscriptions as an overlooked bright spot after reaching a $1 billion annualized revenue run rate, but says hardware spending and advertising headwinds are likely to keep margins under pressure. (anvee.bhutani@wsj.com)
1104 ET -- Shopify's 2Q bar looks beatable, says CIBC's Todd Coupland, with positive trends across the board setting the stage for growth. The analyst says the ecommerce platform "should meet or beat consensus and guide constructively for 3Q," backed by momentum in its payments segment, new merchant additions, European growth and CIBC alternative data. Coupland also notes that Shopify Plus traffic was up 28% in 2Q versus just over 20% last quarter, "a positive read-through for gross merchandise volume versus FactSet's +28% Y/Y expectation." The stock might be down, trading 25% lower year-to-date, but "improving alt data, a beatable bar, and AI likely adding to upside rather than margin risk create a favorable risk/reward heading into the report." (adriano.marchese@wsj.com)
1038 ET - Canadian wireless carriers appear to be moving in the right direction with pricing, says TD Cowen's Vince Valentini. The analyst notes that pricing discipline has remained solid, with modest hikes in mobile plan prices now visible or anticipated across discount and full-service brands. However, one notable exception remains: Quebecor's Freedom Mobile, the newest challenger on the stage which has traditionally kept its prices low to gain a foothold in the market. "Freedom Mobile [is] the only postpaid brand in Ontario, Alberta and British Columbia, yet to move, making it the key brand to watch over the next week," he says. The higher price points should create a "healthier" baseline, Valentine adds. (adriano.marchese@wsj.com)
0500 ET - Shares of European semiconductor companies are paring gains after President Trump said he believed his ceasefire deal with Iran was over following a round of attacks on ships in the Strait of Hormuz. Shares of Dutch semiconductor-equipment maker ASML Holding were up 1.6% earlier in the session, but are now up just 0.4%. Those of smaller rival ASM International were up 0.1%, but are now down 1.2%. Shares of BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, were up 0.9% and are now flat. STMicroelectronics shares were 1.9% higher earlier and are now up 0.5%. (mauro.orru@wsj.com)
0451 ET - China's data center buildout targeting government and state-enterprise AI workloads may reduce the demand for Alibaba's public-sector computing systems, Morningstar analyst Chelsey Tam says. She lowers her forecasts for Alibaba's cloud revenue by 10% annually from fiscal 2030, when the buildout is expected to be complete. Tam also says U.S. legislative threats against the company should pose limited impact given Alibaba's minimal U.S. presence. Morningstar cuts its fair value estimate for Alibaba's ADRs by 7% to $241 but says the valuation remains cheap, adding that concerns over delivery losses and rising AI computing costs are overdone. (jason.chau@wsj.com)
0447 ET - Elon Musk's Space Exploration Technologies offers a business model that allows it to tap opportunities across space, connectivity and artificial intelligence, UBS analysts write in a note to clients. They initiate coverage of the stock with a buy rating and a $210 price target. "We view SpaceX as an unparalleled set of assets with multiple drivers of upside for risk tolerant, long term investors," they say. Scaling its Starship launch vehicle will allow SpaceX to unlock opportunities in space, communications and AI with a total addressable market nearing $30 trillion, the analysts say. SpaceX shares are up 1% premarket at $151.02. (mauro.orru@wsj.com)
0436 ET - Kling, Kuaishou Technology's AI video business, is likely to see more room for growth from its latest fundraising round, while the long-term outlook remains challenging, according to Morningstar's Ivan Su in a research note. "We're encouraged to see outside capital now funding Kling's hefty compute bill, with minority interests absorbing a portion of its losses," Su says. However, the fundraising only covers approximately one year of capital expenditure and remains small compared to the capex of larger competitors like ByteDance and Google, the analyst says. Morningstar maintains its fair value estimate for Kuaishou at HK$90.00. Shares last traded at HK$43.98. (tracy.qu@wsj.com)
0426 ET - Shares of European semiconductor companies are bouncing back Wednesday following Tuesday's tech selloff that was triggered by Samsung Electronics. The memory chip maker provided an earnings update that didn't clear a high bar from investors. While Samsung and some other Asian tech stocks closed another day in the red, shares of European semiconductor companies are in positive territory. Shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 1.6% and 0.1%, respectively. Shares of BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, are up 0.9%. STMicroelectronics shares are 1.9% higher. (mauro.orru@wsj.com)
0421 ET - Kokusai Electric's dominant market position in batch atomic layer deposition--a technology used in AI chip production--should allow it to capitalize on the artificial-intelligence investment cycle, says Morningstar's Jing Jie Yu in a note. Rising chip complexity is weighing on wafer throughput in chip manufacturing, he notes. The Japanese wafer-fabrication equipment company's tools are likely able to help address this bottleneck, the analyst says, noting its 49% global market share of the batch deposition sector as of 2025. He expects Kokusai's revenue to grow at a compound annual growth rate of 15% over the next five years on robust long-term demand for its equipment. Morningstar starts its coverage with a fair-value estimate of 9,500 yen. Shares last closed 4.0% lower at Y9,834. (megan.cheah@wsj.com)
0355 ET - Global initial public offering markets could see a strong 2H, EY says in its latest report. Investor appetite has returned after years of subdued IPO issuance, but execution windows may be "episodic" and could be shaped by mega-IPOs and geopolitics, it writes. Companies pursuing public listings are using more flexible approaches, including IPOs, direct listings and SPACs, to take advantage of improving market conditions, it adds. AI and related infrastructure themes are having a greater influence, with momentum accelerating in semiconductors, power and data-center infrastructure, robotics and other advanced manufacturing segments, it says. "Investors are favoring companies with a demonstrable AI value creation narrative and questioning those with unsubstantiated AI positioning." (kimberley.kao@wsj.com)
0345 ET - Alibaba Group is likely to benefit from its AI and cloud business, according to Jefferies analysts in a research note. "In cloud computing, Alibaba has clear market leadership as the backbone of digitalization across different industries," the analysts say. Jefferies expects Alibaba's cloud segment EBITA margin to improve sequentially in the June quarter at 11.5%, higher than market consensus. Jefferies maintains a buy rating on the stock, with a target price of HK$179.00. Shares last traded at HK$107.80. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
July 08, 2026 12:20 ET (16:20 GMT)
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