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.
1134 ET - Walmart and Target are in a better spot than other food retailers when it comes to weathering the competitive threat from a proposed combination of DoorDash and Instacart, Morgan Stanley analysts say in a note. While both Walmart and Target have relationships with third-party delivery platforms, their proprietary capabilities should give them more flexibility than other retailers that are more reliant on outsourced delivery, the analysts say. Walmart has its own proprietary delivery network called Spark, giving it a structural advantage, the analysts say. Target's ownership of Shipt, meanwhile, affords greater control over fulfillment, they say. "A more consolidated third-party delivery landscape could further widen the competitive gap between retailers with proprietary networks and those without," they say. (kelly.cloonan@wsj.com)
1112 ET [Dow Jones]--A proposed tie-up between DoorDash and Instacart could give the combined platform more of a leg up on grocers when it comes to negotiating last-mile delivery deals, Morgan Stanley analysts say in a note. Most food retailers lack proprietary last-mile delivery networks, given the costs and complexity of building them out, the analysts say. Many players in the industry use DoorDash or Instacart as a result, with several using both platforms, including Costco, Kroger and Albertsons, the analysts say. Consolidation could thus give the combined platform more negotiating leverage, which could affect delivery economics, access to customers and retail media monetization, the analysts say. (kelly.cloonan@wsj.com)
1005 ET - Fox's cable-network business--which includes Fox News, Fox Sports 1 and Fox Business--recorded quarterly revenue of $1.8 billion, up 8% from the year-ago period. The gain was due to contractual price increases and growth in the average number of subscribers, the company says. Higher sports advertising revenue, including a boost from the World Cup, also contributed to the segment's growth. Fox Corp. and Wall Street Journal parent News Corp share common ownership. (kelly.cloonan@wsj.com)
1002 ET - Fox's quarterly advertising revenue climbed 47%, with a 60% jump in its television segment. The company cites a boost from the FIFA World Cup as well as political advertising and its streaming platform Tubi. The World Cup and election cycle, as well as the kickoff of the college football and NFL seasons, "supported strong contributions from across the company," Chief Executive Officer Lachlan Murdoch says. Fox Corp. and Wall Street Journal parent News Corp share common ownership. (kelly.cloonan@wsj.com)
0854 ET - Lumentum reports a F1Q profit of $360.3 million, or $3.54 a share, up from $4.2 million, or 5 cents a share, in last year's comparable period. Stripping out certain one-time items, quarterly earnings came out to $4.57 a share, ahead of analyst views for $4.22 a share, according to FactSet. Net revenue more than doubled to $1.26 billion. CEO Michael Hurlston says Lumentum delivered growth across all its businesses, with pump lasers and optical circuit switches being the leading contributors. "Looking ahead, we anticipate adding approximately $350 million in sequential growth in our second quarter," he adds. Lumentum is down 4% premarket, after agreeing to be bought by Marvell Technology in an all-stock deal worth roughly $80 billion. (connor.hart@wsj.com)
0847 ET - U.S. corporate bond issuers are paying higher premiums to attract bond buyers as companies issue more debt, BNP Paribas' Viktor Hjort says in a note. Rising corporate debt supply to fund AI-linked expansion is causing investors to demand higher compensation for buying bonds. "Funding investments across hyperscalers, data centers, AI labs, semiconductors and power will push corporate bond supply materially higher in the coming year," Hjort says. (miriam.mukuru@wsj.com)
0843 ET - Marvell Technology and Lumentum agree to an $80 billion tie-up, bringing together what the companies call complementary electrical and optical technologies to help address increasingly complex connectivity requirements across next-generation AI infrastructure. The deal will help shape the next era of AI connectivity, Marvell CEO Matt Murphy says. The combined company's total addressable market is projected to be $550 billion, as surging AI data traffic continues to necessitate rapid hardware innovation. (connor.hart@wsj.com)
0837 ET - Marvell narrows its F3Q revenue outlook. The company says it now expects revenue of $3.15 billion plus of minus 2%. It had previously guided for F3Q revenue of $3.15 billion, plus or minus 5%. The new outlook comes as Marvell agrees to buy data-center-optics maker Lumentum in an all-stock deal worth roughly $80 billion. (connor.hart@wsj.com)
0435 ET - Robotaxi will reach 1% of China's combined taxi and ride-hailing fleet by 2028, or roughly 46,000 vehicles, with vehicle-level margins nearing 35%, and the fleet scaling toward 1 million units by 2035, Morgan Stanley analysts write in a note. As models improve, datasets expand and hardware costs decline, the industry will largely to reach unit economics breakeven by 2028. China's robotaxi operators are also commercializing overseas, particularly in the Middle East and Europe, where higher labor costs improve the economics of autonomous mobility, they say. WeRide, Pony AI, Baidu and Momenta are already embedding China's ecosystem into global ride-hailing infrastructure, they add.While the regulatory authority maintains a cautious and measured approach toward granting new license, and framework now forming is more technically comprehensive and more durable than the one it replaces.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0244 ET - Rising interest rates in the U.S. have likely capped the performance of Singapore's small- and mid-cap stocks, say Macquarie Capital analysts in a note, citing historical trading patterns. Higher rates have likely prevented these small-to-mid-cap stocks from reaping the full benefits of the latest tranche of funds under Singapore's equities development market program meant to boost trading in small- and mid-cap stocks, the analysts say. Overall liquidity has been declining and stock liquidity has pivoted back towards larger caps, they say. Macquarie analysts remain focused on companies with strong, visible earnings growth, such as UOB-Kay Hian and UMS Integration. (megan.cheah@wsj.com)
2230 ET - Panasonic Holdings' 2H guidance still seems conservative after the Japanese electronics maker raised full-year earnings forecasts, says Atul Goyal at Jefferies in a note. Artificial intelligence-related infrastructure demand and restructuring helped drive broad-based margin gains in 2Q, led by its energy and industry segments, the analyst says. Demand for battery backup units and capacitors remains strong, with further capacity investment likely. The stock valuation remains reasonable if AI-related growth, restructuring and pricing drive operating-profit growth beyond the fiscal year ending March 2027, he says. Key risks are data-center project timing and input costs. The bank maintains a buy rating and a target price of 4,684 yen. Shares are up 5.2% at Y3,731. (kosaku.narioka@wsj.com; @kosakunarioka)
2017 ET - CelcomDigi's 3Q core net profit is estimated to have increased 1%-3% sequentially, helped by lower costs, CIMB Securities analysts Choong Chen Foong and Kenny Lim say in a note. They tip 3Q core earnings up 4%-6% on year at 430 million-440 million ringgit. Service revenue may have remained flat as tighter prepaid SIM registration rules weighed on demand, although lower dealer commissions and SIM card costs should cushion the impact, they reckon. The analysts cut their 2026-2028 core earnings forecasts by 1%-4% to account for higher costs from additional spectrum rights, but expect network capacity and coverage to improve. CIMB maintains a buy rating on CelcomDigi and keeps its target price at 3.65 ringgit. Shares are 0.4% lower at 2.53 ringgit.
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