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.
1215 ET - Telus' large cut to 2028 outlook for free cash flow is not just a miss but a material reset, says BofA's Matthew Griffiths. In a report, the analyst notes that the Canadian telco now expects service 2026 revenue growth at flat to down 2%, from a growth of 2%-4%, and adjusted Ebitda now seen down 2%-4% rather than up 2%-4%. Free cash flow guidance for the year is now C$650 million lower at C$1.8 billion, on weaker Ebitda and higher capex. However "the 26% cut to 2028E free cash flow expectations is most concerning element of its guide," Griffiths says, downgrading the stock to underperform from buy, and lowering the price target to C$13 from C$22. Shares are down 2.8% to C$13.00, and now down 28% year-to-date. (adriano.marchese@wsj.com)
1201 ET - Users of the Coldcard hardware wallet are fleeing, looking for a safer place to store their bitcoin. Since last week, users of Coldcard have been reporting their bitcoin stored on the hardware wallets have been siphoned, stoking fear among users that they may lose their holdings. In a note, analysts with CryptoQuant say that small holders of bitcoin are moving coins "at a scale not seen since the FTX collapse," with many Coldcard users opting to move their holdings to centralized exchanges like Coinbase and Binance. In a post on X, Galaxy Research says that as of last night, the hack has stolen roughly $130 million-worth of bitcoin. Bitcoin is down 0.2% to $63,675 today. (kirk.maltais@wsj.com)
1141 ET - Palantir Technologies' total addressable market is expanding, thanks to an increase in demand for sovereign AI, Truist analysts say. AI customers increasingly want to protect their proprietary data from AI model providers, such as OpenAI and Anthropic, the analysts say. The analysts see this as a significant opportunity for Palantir to gain share because it lets customers retain their data, rather than contributing enterprise intelligence back to model providers. This could expand the total addressable market as enterprises could opt to both deploy applications to run frontier models and own their own intelligence via Palantir's offering. Palantir rockets 26%. (katherine.hamilton@wsj.com)
1015 ET -- Concerns about Palantir Technologies facing rising competition are likely overblown, Oppenheimer analysts Param Singh and Jake Heimowitz say. Some investors have worried that companies such as Anthropic, OpenAI and Databricks are an increasing threat to Palantir, but the analysts believe Palantir's success in the U.S. is a testament to its differentiated strength. They believe Palantir appeals to customers with more complex workloads and offers more flexibility than these competitors, which will allow it to differentiate itself. Shares are up 23%. (katherine.hamilton@wsj.com)
1009 ET -- Palantir Technologies is vying for companies to resist dependence on AI models, Benchmark analyst Yi Fu Lee says. The company spent a lot of time discussing "AI sovereignty," arguing that enterprise companies are prioritizing ownership and control of their data and AI models, rather than relying on frontier AI providers such as OpenAI and Anthropic. This comes as model providers are cutting prices amid complaints by executives about the cost of AI. Palantir is positioning its sovereign AI architecture as a control layer that sits above the models, allowing companies to retain information about their data and intellectual property, Lee says. (katherine.hamilton@wsj.com)
0959 ET--Palantir Technologies investors are debating whether the company can grow beyond its U.S.-focused business model, Benchmark analyst Yi Fu Lee says. "The key investor debate is increasingly shifting from whether the company can grow to whether its success can ultimately broaden beyond an exceptionally strong U.S. franchise," Lee says. Palantir has proven itself as a high-clearance provider for customers such as the U.S. government and military, which has driven many of its multi-million-dollar deals, Lee says. Lee believes Palantir's current valuation limits tolerance for any slowdown in U.S. demand, which is why Lee remains sidelined, rating the stock as a hold. Shares gain 20%. (katherine.hamilton@wsj.com)
0840 ET - European stock indexes are set to hit a raft of new records as positive earnings stories, a tech rally and low oil prices buoy the continent's stocks. The Europe-wide Stoxx 600 is on pace for its first record close in over a month. In Paris, the French CAC 40 gains 0.3%, on track for its first record close since February. Gains for index heavyweight Schneider Electric--up 2.9%--and chip maker STMicroelectronics--up 3.8%--lift the index. The German DAX trades up 0.8%, extending Monday's record close. The Dutch AEX jumps 1% to a new high as ASML climbs 3.5%. Spain's IBEX 35 and the Italian FTSE MIB are also poised for new records. London's FTSE 100 is a laggard, rising 0.35% to hover slightly below its own record. (josephmichael.stonor@wsj.com)
0539 ET - Ams-Osram's strong second-quarter results show that the Austria-based electronics company is progressing well when it comes to opportunities in AI photonics and smartglasses, JPMorgan analysts write in a research note. "Overall the results signal continued stabilization and solid growth in the core business, and good progress on the new growth initiatives," they say. The company said it launched development of micro-photodiode arrays--semiconductors that convert light into tiny electric signals--for AI data centers. It also said it achieved key milestones toward mass-production of technology for augmented-reality smartglasses. Ams-Osram shares trade 6% higher at 17.65 Swiss francs. (mauro.orru@wsj.com)
0513 ET - Ams-Osram reported strong second-quarter sales that got a boost from its semiconductor business, Vontobel's Mark Diethelm writes in a research note. The Austria-based electronics company posted revenue of 805 million euros, with the semiconductor business contributing 621 million euros to the total. Diethelm notes the semiconductor business fared particularly well in the industrial and medical segment, where sales increased 19% on year. Ams-Osram's lamps and systems business contributed 184 million euros in revenue, accounting for about 23% of the total. Ams-Osram shares trade 7.1% higher at 17.83 Swiss francs. (mauro.orru@wsj.com)
0508 ET - Indian equities are expected to outperform its global peers in major markets over the next 18 months, supported by strong fundamentals and limited exposure to artificial intelligence, Capital Economics says. Economist Megan Fisher says valuations and earnings growth no longer appear stretched, as rising valuations elsewhere have narrowed India's valuation premium. Strong economic and corporate earnings growth should support equities, with real investment expected to exceed consensus forecasts. Indian stocks are also less vulnerable to a broad AI-driven selloff expected in 2027 as market has relatively low weighting in AI and semiconductor companies. Meanwhile, strong domestic retail inflows are likely to persist, while foreign demand is projected to recover. CE forecasts the MSCI India Index to rise more than 4% by year-end before falling 5% in 2027. (jason.chau@wsj.com)
0456 ET - Palantir's second-quarter results are strong, but the technology group will struggle to beat sky-high expectations going forward, Jefferies analysts write. A near-doubling of quarterly revenue and a lift to the company's 2026 outlook encouraged investors following earnings reported after market close Monday. However, Palantir has now set a very high bar, one that it will need perfect execution to clear, the analysts say. "We are fundamental fans, but the setup gets harder from here." Growth outside of the U.S. is moderating, while Palantir stock is valued for no slip-ups, they say. Other AI-linked companies offer a better risk-reward outlook, like Microsoft, Amazon and Snowflake, the analysts add. Shares jump over 15% premarket.(josephmichael.stonor@wsj.com)
0449 ET - Ams-Osram had a solid set of second-quarter figures, UBS analysts write in a note to clients. The Austria-based electronics company posted revenue of 805 million euros, above Visible Alpha consensus of 778.3 million euros and a UBS forecast of 774.4 million euros. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization of 136 million euros also beat consensus of 120.4 million euros and a UBS estimate of 117.6 million euros. Analysts say third-quarter guidance is roughly in line with expectations. Ams-Osram is projecting revenue of about 820 million euros and an adjusted Ebitda margin of roughly 16% at the midpoint against consensus of 796.7 million euros and 16.6%. Ams-Osram shares trade 6.7% higher at 17.76 Swiss francs.
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