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.
0746 GMT - PDD Holdings' current price level is attractive for a long-term position, Daiwa analysts write in a note. The company remains one of the cheapest stocks under the brokerage's coverage, they say. The headline risks for U.S. import tariffs are largely priced in, they add. After Temu entered new markets in February, the rising mix of non-U.S. markets and the semi-managed model for the U.S. market will likely mitigate potential import tariffs risks, Daiwa says. They expect Temu to break even by the end of this year. Daiwa maintains a buy rating for the stock, with a target price of $180.00. Shares last at $130.92. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0244 GMT - Tencent could generate a high return from its AI investments, with sustainable ad growth, incremental enterprise demand and consumer-facing application monetization, Morgan Stanley analysts say in a research note. MS estimates Tencent's 2025 capital expenditure at 94 billion yuan, mainly on graphics-processing-unit procurement. "With continuous AI ad tech upgrades, we believe Tencent's ads growth should be more durable than global peers given leverage from user data in mini programs and payments," the analysts say. Despite growing capex, MS thinks management remains confident about margin expansion from a favorable business-mix shift. MS maintains its overweight rating and top-pick designation for Tencent and raises the target price to HK$630.00 from HK$550.00. Shares are last at HK$513.00. (sherry.qin@wsj.com)
1826 GMT - Disney is notching higher engagement in its streaming business thanks to a Disney+ bundle that includes Hulu and ESPN, CEO Bob Iger says during the company's annual shareholder meeting. This trend is expected to continue when ESPN's flagship direct-to-consumer offering launches in early fall, he continues. The offering will give subscribers access to the full suite of ESPN's networks, as well as ESPN+, from within Disney+, Iger says. (connor.hart@wsj.com)
1811 GMT - Disney is growing its cruise line, which CEO Bob Iger says will double the company's capacity and reach millions more people around the world. The company currently has seven cruise ships in development, including two which are scheduled to launch later this year, Iger says during the company's annual shareholder meeting. He didn't provide a timeline for the launch of the remaining ships. (connor.hart@wsj.com)
1809 GMT - When asked whether Disney is worried that its theme park prices are hurting return visitation, CEO Bob Iger says the company provides "several options for families looking to spend less, including our lowest-price ticket to Disneyland, which we've kept at the same level since before the Covid pandemic." Ticket prices to the company's parks vary based on demand. One-day adult passes to Disneyland broke the $200 mark on the most popular days at the theme park for the first time in October, more than $100 more than the price of admission on the lowest-cost day. (connor.hart@wsj.com)
1807 GMT - Disney CEO Bob Iger went to Walt Disney World Resort during a recent weekday in March and was pleased to see that the parks were busy. That's because consumer demand for Disney's Experiences division, which includes its theme parks and cruises, is extremely high, Iger says during the company's annual shareholder meeting. He adds that the company is committed to expanding its existing parks, which will add more capacity and value for guests. "Our parks remain the most popular offering in the industry and a solid growth business for the company," Iger says. (connor.hart@wsj.com)
1738 GMT - Disney isn't slowing down on its sequel strategy anytime soon. Pixar is developing "Coco 2," a follow-up to the animation studio's award-winning 2017 film which grossed more than $800 million at the worldwide box office, CEO Bob Iger says during the company's annual shareholder meeting. "While the film is just in the initial stages, we know it will be full of humor, heart and adventure," he says. "And we can't wait to share more soon." Disney benefited from its sequel-heavy film strategy last year, with "Inside Out 2," "Deadpool & Wolverine" and "Moana 2" each grossing more than $1 billion at the box office. (connor.hart@wsj.com)
1734 GMT - Disney has more projects currently in development at its theme parks than at any other time in the company's history, CEO Bob Iger says during the company's annual shareholder meeting. The projects include new lands themed to Disney villains and the company's "Cars" franchise coming to its Magic Kingdom theme park in Orlando, Fla., as well as a first-of-its kind ride based on "The Lion King" coming to Disneyland Paris. Iger says these investments will fuel growth at the company's parks, as well as create thousands of jobs. The company previously said it plans to invest $60 billion into its theme parks, cruises and resorts over the next decade. (connor.hart@wsj.com)
1729 GMT - The EU's decision to charge Google over favoring its own services in search results is "a critical step toward restoring fairness in the digital economy," lobby group Ecommerce Europe says. Ecommerce Europe represents online vendors including H&M, Deliveroo and Amazon, and says it is one of the stakeholder groups involved in discussions related to Google's search results. "Through this announcement, the Commission further expresses its commitment to enforcing the [Digital Markets Act] despite external pressures, reinforcing trust in Europe's ability to maintain an open and competitive Digital Single Market," it says. (edith.hancock@wsj.com)
1447 GMT - Amazon's planned used-car business would likely be more of a threat to third-party listing sites like CarGurus than online marketplace Carvana, Bank of America analysts Michael McGovern and Justin Post say in a report. Amazon Autos, which lets customers browse and buy new Hyundai vehicles, is adding used cars to its repertoire soon, General Manager Fan Jin said on a podcast this week. Amazon's expansion could help drive consumer interest in buying vehicles online. Amazon's model is closer to third-party platforms, while Carvana's broader selection beyond Hyundai models gives it a competitive edge, the analysts say. (katherine.hamilton@wsj.com)
0932 GMT - Nvidia shares edge higher premarket after Chief Executive Jensen Huang said in a Financial Times interview that the company would spend hundreds of billions of dollars on chips and other electronics manufactured in the U.S. over the next four years. Nvidia stock closed 1.8% higher at $117.52 Wednesday. Shares are up 1.3% Thursday premarket, touching a high of $119.55. Huang's remarks come as Nvidia hosts a weeklong AI event in San Jose, where the company unveiled a new line of chips called Rubin that are expected to be available in the second half of 2026. (mauro.orru@wsj.com)
0900 GMT - Investors might be too optimistic about Xiaomi's EV business, Morningstar analyst Dan Baker writes in a note. The company's shares look overvalued, with the current P/E ratio at around 52X well above its historical range, Baker says. He thinks current valuations reflect an overly optimistic view of the EV business, they say. Morningstar forecasts five-year average revenue growth of 15% for Xiaomi, and projects its EV business to sell around 570,000 cars per year by 2029. Morningstar estimates the company's EV gross margin to rise to 25% by 2028. It raises its fair value estimate on the stock by 30% to HK$30.00. Shares last closed at HK$56.50.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
March 21, 2025 04:20 ET (08:20 GMT)
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