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.
1319 ET - Delivery Hero says it is in advanced discussions with Uber over a potential takeover of the German food-delivery company. The talks come amid recent efforts from Uber to bolster its international presence. Earlier this year, Uber agreed to acquire chauffeur-service company Blacklane, which operates in more than 60 countries, and in June, the ride-hailing company agreed to acquire Getir's delivery portfolio in Turkey. Delivery Hero operates in about 65 countries across Asia, Europe, Latin America, the Middle East and Africa, according to the company's website. (kelly.cloonan@wsj.com)
1249 ET - The market has soured on Netflix in the last few months, bringing several concerns to the forefront ahead of the streaming company's 2Q results, Morgan Stanley analysts say in a note. Investors are worried about engagement trends and a lack of recent break-through new content, as well as the possibility of higher churn after a price hike in March. There are also concerns over higher spending and less margin expansion than Netflix's historical average, plus questions over its positioning amid the rise of AI and uncertainty over which type of content will resonate with audiences in the future, they say. However, they continue to see shares as undervalued. "We tend to think many of these concerns are well understood and in some cases overblown," they say. (kelly.cloonan@wsj.com)
1230 ET - Apple's stock looks overly expensive as several factors threaten to pressure unit growth, KeyBanc Capital Markets analysts say in a note. The device maker's recent price increases for iPad and Mac, and a potential hike for iPhone prices, will likely drive a slowdown in unit growth, the analysts say. That will in turn weigh on user growth which is correlated with its services business, the analysts say. Additionally, U.S. carriers like Verizon and AT&T seem to be pulling back on device subsidy offers, which could encourage consumers to hold onto their devices for longer and upgrade less frequently, pressuring domestic growth, they say. That makes international growth increasingly important for Apple, where iPhone price increase will make it tough to gain customers, they say. The analysts downgrade the stock to underweight from sector weight, with a $250 price target. (kelly.cloonan@wsj.com)
1229 ET - Okta's commentary around its Okta for AI Agents offering was more balanced recently, compared with enthusiastic bullishness on the company's 1Q earnings call, D.A. Davidson analysts write in a note. "That said," the analysts add, "FY27 guidance still does not embed any material contribution for this product, leaving room for meaningful upside in our view if Okta is able to execute & begin to convert what is a strong & growing pipeline for the product." They note that Okta's most common competition in offering security for artificial-intelligence agents seems to be do-it-yourself solutions rather than established commercial services. (elias.schisgall@wsj.com)
1219 ET - Delivery Hero shares rose nearly 6% following a report of advanced talks with Uber over the acquisition of the German food-delivery company. According to Bloomberg, the U.S. giant intends to strike a deal with Delivery Hero as soon as this week. The transaction could value the German group well above its recent share price of around 36 euros per share, Bloomberg says, citing unnamed sources. Delivery Hero shares are up 5.8% at 39.10 euros. (najat.kantouar@wsj.com)
0732 ET - Ericsson's outlook comments will probably prompt low-single-digit percentage downgrades to 2026 EPS estimates, UBS analyst Francois-Xavier Bouvignies writes. Consensus 2027 estimates will also likely fall, by a low- to mid-single-digit percentage, he adds. The company posted second-quarter revenue that was 2% below consensus and guided to a networks gross margin of 48%-50% versus consensus at 50%. Ericsson also highlighted increasing component cost inflation heading into the coming quarters, which UBS believes could place additional pressure on gross margins from the fourth quarter onward. "With the stock up 25% year-to-date, we believe the combination of slowing revenue growth, lower gross margins, and increasing component cost inflation is likely to weigh on sentiment." Shares fall 8.6%. (dominic.chopping@wsj.com)
0524 ET - JD.com's 2Q results is likely to be better than market expectations, according to Nomura analysts in a research note. Nomura expects JD's retail business to report a 5.5% decline in revenue during the quarter, better than market expectations of a 7.5% decline. This is partially supported by JD's supermarket sales, Nomura says. The bank adds that losses from its food delivery business is likely to narrow significantly. Nomura keeps a buy rating and a target price of its ADRs at US$41.00, which last traded at US$28.88. (tracy.qu@wsj.com)
0436 ET - SK Hynix's American depositary receipts look fairly valued given longer-term cyclical risks, Morningstar says in a note. Analyst Jing Jie Yu expects memory-chip makers' earnings trajectories to be "highly unpredictable" and thinks the "tremendous volatility" in both SK Hynix ADRs and Korean stocks will continue. For SK Hynix, unprecedented levels of retail participation and margin taken on its shares are exacerbating the volatility, he adds. "That said, we expect near-term price discovery to continue for SK Hynix's ADRs, given the limited trading history to identify appropriate spreads." Morningstar maintains a $160 fair-value estimate and reiterates its "very high" uncertainty rating. Nasdaq-listed SK Hynix tumbled 9.3% to $152.35 on Monday after surging 13% on its first day of trading. (farah.elias@wsj.com)
0434 ET - Ericsson's second-quarter sales came in below expectations, with the miss coming mainly from networks, Jefferies analyst Janardan Menon writes. "This seems to have been mainly due to the timing of deliveries in India, with guidance for a stronger-than-seasonal Q3 as these deliveries are implemented." Ericsson notched down its networks gross margin guidance to a mid-point of 49%, from 50.4% in the second-quarter, with the headwind being mainly a higher proportion of network roll-out projects. However, steadily rising component prices could have a bigger impact on the fourth-quarter gross margin, depending on the level of success in mitigating actions including price increases, Jefferies says. It is unclear whether network roll-out will remain a headwind in the fourth quarter. Shares fall 7.9%. (dominic.chopping@wsj.com)
0400 ET - China's K-shaped export recovery is contributing to a growing divergence across industries, say Barclays economists in a research note. High-tech sectors, such as semiconductors and electronics, are enjoying expanding profits and stronger pricing power. Meanwhile, traditional industries, including textiles and household consumer goods, face declining profits and persistent price pressures. With strength in headline exports largely concentrated in capital-intensive industries, the positive spillover from exports to the domestic labor market appears limited. "As a result, the export boom is unlikely to translate into a rapid recovery in household income or consumption, which explains the continued softness in domestic demand," Barclays says. (monica.gupta@wsj.com)
0329 ET - Ericsson second-quarter earnings beat expectations, but gross margin guidance will likely weigh on the stock, J.P. Morgan analysts write. Ericsson beat consensus Ebitda expectations by 3.1%, despite a sales miss, on the back of better gross margins in both the key networks and cloud software & services divisions. However, the company is guiding for a gross margin of 49% at the midpoint in networks, which is below consensus expectations of 49.7%, the bank says. Third-quarter earnings are likely to be a mid single digit percentage below consensus, J.P. Morgan adds. "Overall, we expect investors will worry about the component cost impact on margins along with the mix impact i.e. lower U.S. revenue impacting margins into 2H." Shares fall 6.9%. (dominic.chopping@wsj.com)
0257 ET - CJ ENM could be hit by Korea's shrinking broadcasting market, CGS International's Joshua Kim says in a research report. According to the Korea Media and Communications Commission, the country's broadcasting market revenue has contracted for three straight years through 2025. Also, advertising revenue CAGR has declined 13% over 2022-2025, the analyst notes. The trend is expected to continue through 2026 and beyond as high-margin ad spending continues to migrate toward online platforms. The brokerage cuts its 2026 and 2027 EPS forecasts for the entertainment and retail conglomerate by 46% and 30%, respectively. It lowers the stock's rating to hold from add and the target price to 34,000 won from 78,000 won. Shares last closed at 30,150 won. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
July 14, 2026 16:50 ET (20:50 GMT)
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