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.
1353 ET - Bitcoin is up 1.9% to $64,223, and remains within it's recent general trading range between around $52,700 at its floor, and a short-term realized price just above $67,000. This "stalemate" between the two sides has kept bitcoin prices in place, says Bitfinex in a note. "Situations combining low liquidity, reduced volume and stalling price action typically precede late bear market conditions," the firm explains. But if bitcoin manages to surpass the $67k mark, then there may be a breakout ahead. "Reclaiming the $67,176 level would restore profitability for recent buyers and test overhead resistance," says the firm. (kirk.maltais@wsj.com)
1133 ET - L3Harris Technologies having Sam Mehta replace Chris Kubasik as CEO could be a catalyst for the company closing its performance gap against rival defense contractors, Vertical Research Partners analysts Robert Stallard and Karl Oehlschlaeger say in a research note. Kubasik's ouster is tied to a violation of the company's code of conduct, and investors probably don't think it will affect the underlying business, the analysts say. But it isn't going unnoticed that L3Harris lagged its U.S. defense peers under Kubasik's leadership, they say. The analysts have a high regard for Sam Mehta, the president of L3Harris' space and mission systems. They say he has been an effective manager and a good communicator. (dean.seal@wsj.com)
1127 ET - Chris Kubasik is out as CEO of L3Harris Technologies, a departure that likely has investors thinking back to his ouster from defense rival Lockheed Martin in 2012, Vertical Research Partners analysts Robert Stallard and Karl Oehlschlaeger say in a research note. L3Harris says Kubasik, also its chairman, was found to have violated the defense contractor's code of conduct. Kubasik was set to take the CEO role at Lockheed in 2012 before he was ousted for a "lengthy, close personal relationship" with a subordinate. Whatever drove this more recent departure, investors will likely conclude that the management change won't impact the underlying business, the analysts say. (dean.seal@wsj.com)
1059 ET - Bitcoin can't seem to sustain an elongated breakout from either the higher and lower side of its trading range in recent weeks. The cryptocurrency is up 0.8% to $63,573, but there are factors working against further upside, including the resumption of outflows from bitcoin ETFs by funds. "After a relatively positive start to August, U.S. spot bitcoin ETFs recorded approximately $390 million in net outflows during the week of August 10-14," says Linh Tran of XS.com in a note. "This is not enough to conclude that institutional investors are abandoning bitcoin, but it does suggest that ETF demand is no longer providing the same level of support as before." (kirk.maltais@wsj.com)
1013 ET - With stock-market valuations sky-high as investors make big bets on artificial-intelligence technology, a market correction looks probable, European Central Bank economists say in a blogpost. The rally in the tech sector has brought valuations to levels last seen during the dot-com bubble, they say. "Economic research on past technological revolutions points to a worrisome conclusion: a correction of current stock-market valuations is likely." Unlike during the dot-com bubble, there is less room this time to cut interest rates or use fiscal policy to cushion the fallout, they say. A correction would have severe consequences for the eurozone through investors' direct exposure to the U.S.'s Magnificent Seven tech stocks, and the "overexuberance" in European stock markets themselves, the economists add. (edward.frankl@wsj.com)
0756 ET - MDA Space is starting to get its satellites into space for Globalstar's low-Earth orbit constellation, kicking off an important testing phase following an Aug. 15 launch. The deployment of eight low Earth orbit replenishment satellites aboard a SpaceX Falcon 9 rocket from Cape Canaveral marks the beginning of in-orbit commissioning. The satellites are developed and integrated in Montreal and represent the first commercial communications satellites delivered by MDA as a prime contractor. The company has nine remaining satellites on order currently in final integration, which, once fully deployed, will complete a replenishment fleet meant to extend the operational lifespan of Globalstar's existing network. (adriano.marchese@wsj.com)
0503 ET - Biren Technology is expected to significantly narrow losses amid surging AI chip demand and continued optimization of its product mix. The AI chip maker guided for 1H net loss between 320 million yuan and 400 million yuan, narrowing sharply, while revenue likely rose around 20 times to between 1.15 billion yuan and 1.3 billion yuan. The company attributed the significant revenue jump to fast-growing AI application scenarios and accelerating commercialization. Maybank analysts say in a recent note that Biren is better viewed as a supply-allocation story than a pure technology player as its demand is supported by China's chip-self sufficiency drive and AI chip shortage, even if its products lag top domestic peers in terms of performance. Biren's shares ended 7.0% higher at HK$38.98. (sherry.qin@wsj.com)
0455 ET - Adyen shouldn't be immediately impacted by potential M&A activity from U.S. rival Stripe, ING's Thymen Rundberg writes in a note. Paypal Holdings is in talks to sell itself to a group that includes Stripe and private-equity firm Advent International, The Wall Street Journal reported, citing sources familiar with the matter. While Stripe is building a wider ecosystem across consumers, merchants and AI developers, the Amsterdam-based company remains a neutral, merchant-focused commerce service provider, he says. "We see this neutrality as a genuine differentiator, although Stripe's broader reach could strengthen its competitive position over time," Rundberg adds. Adyen shares are down 1.4% at 1,046.60 euros. (najat.kantouar@wsj.com)
0414 ET - SMIC and Hua Hong Grace's upbeat results indicate "an increasingly constructive recovery" for legacy and specialty semiconductors, Citi analysts say in a research note. AI is not only driving demand for advanced nodes but also increasing demand for mature-node chips used for power management, connectivity and peripheral logic, the analysts say. Both companies have negotiated wafer price hikes with clients, which created meaningful operating leverage despite rising depreciation from new capacity. Citi expects trailing-edge foundries to have better pricing leverage than they had over the past two years thanks to the AI boom. The bank raises SMIC's target price to HK$100.00 from HK$90.00 and Hua Hong's to HK$175 from HK$160.00. SMIC's shares were last 6.2% higher at Hua Hong Grace rose 7.5%. (sherry.qin@wsj.com)
0338 ET - Universal Music Group continues to benefit from higher minimum per-subscriber payments, Citi analysts write in a note. The world's largest music company shows sustainable growth driven by increases in minimum per-subscriber payments from online music streaming platforms, they say. The group also has growth potential related to AI-generated playlists, given the potential launch of this service by Spotify in the second half of the year or early 2027, they add. The U.S. bank resumes its coverage with a buy rating and a target price of 20 euros on the stock. Shares are up 0.9% at 15.08 euros. (najat.kantouar@wsj.com)
0328 ET - Citic Telecom's mobile services and international telecommunications services are likely to remain key growth drivers, says DBS Group Research's Tsz Wang Tam in a note. The company's 1H earnings were largely stable, buoyed by its resilient mobile and international segments, the analyst says. The company is also budgeting a higher capital expenditure of 145 million Hong Kong dollars to support its artificial-intelligence infrastructure investments, he adds. The completion of its Hutchison Telecom Macau acquisition is likely to strengthen Citic Telecom's market leadership in Macau. DBS projects 4.3% and 5.2% earnings growth for 2026 and 2027, respectively. The bank retains its buy rating and HK$3.30 target price. The stock is up 3.3% at HK$2.515. (megan.cheah@wsj.com)
0250 ET - Liquid cooling penetration among AI chips is projected to approach 60% by 2027, as next-generation AI hardware continues to push power and thermal requirements higher, according to research firm TrendForce. The firm says adoption is expected to rise from approximately 33% in 2025 to 53% in 2026, driven by continued investment in AI infrastructure and the rollout of new high-performance AI chips from Nvidia, AMD and Google. AMD is expanding its AI platform strategy with the Helios rack-scale solution, which is expected to enter large-scale shipments in 2027, while the next-generation MI500 platform is being developed to compete with Nvidia's Rubin Ultra, TrendForce says.
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