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.

1136 ET - Alphabet says its contracts with smartphone manufacturers--which ensure some Google products such as its Chrome browser are pre-installed on devices using the company's Android operating system--keep those devices safe and are good for competition, according to a regulatory filing the U.K.'s Competition and Markets Authority published on Wednesday. The CMA said in November that Google's design choices related to its Chrome browser on smartphones "make it more difficult for consumers to switch to regularly using another browser app." The company responded in a hearing that its deals "ensure a high-quality, consistent out-of-the box experience" controlled by device makers, the filing says. The company also says its agreements incentivise smartphone makers to ship security updates and upgrades to the Android operating system. (edith.hancock@wsj.com)

0739 ET - Forcing Apple to open up its iPhone operating system to rival developers would harm its ability to innovate and put users at risk, the company says, according to a regulatory filing the U.K.'s Competition and Markets Authority published Wednesday. The CMA has new powers to curb the world's largest tech companies' market power under the Digital Markets, Competition and Consumers Act, which came into force this year. Apple could be obliged to make it easier for app developers and browser engines rivaling its own Safari to run on its popular iPhones under that law. The company says it prioritizes user privacy and security, adding that the regulator finding last year that smaller players should find it easier to compete would lead to companies "who have commoditized user data and wish to see privacy protections eroded" benefiting. (edith.hancock@wsj.com)

0628 ET - European chip maker STMicroelectronics should bring in hundreds of million of dollars from sales to Apple in the coming years, Jefferies analysts write in a note to investors. The analysts expect STMicroelectronics to provide a 3D sensor component for Apple's Face ID authentication technology in its next generation of iPhones that should launch in September. The company should make roughly $255 million in sales in the second half, the analysts estimate, with more than $400 million in additional revenue next year. Apple was STMicroelectronics' largest client in 2023, accounting for 12.3% of sales. STMicroelectronics shares trade 5.3% higher at 24.36 euros. (mauro.orru@wsj.com)

0613 ET - Delivery Hero's margins in Saudi Arabia will likely slow down due to competition from Meituan's Keeta, Citi analysts write in a note. Keeta, the overseas branch of Meituan--China's biggest food delivery and quick commerce platform--has expanded through successive promotions and is currently one of the most downloaded apps in the country, the analysts say. "Keeta's aggressive expansion in Saudi Arabia looks to have been highly effective so far at capturing traffic share." The German food-delivery company's current valuation doesn't fully capture the increasingly competitive environment, they say. The U.S. bank cuts its recommendation on Delivery Hero's shares to sell from neutral and its target price to 26 euros from 28 euros. Shares are down 5.3% at 29.72 euros. (najat.kantouar@wsj.com)

0546 ET - STMicroelectronics' revenue and gross margin are expected to show a small improvement in 2Q and a stronger rebound in 2H, Jefferies analysts write in a note to clients as they upgrade the European chip maker to buy from hold. STMicroelectronics is forecasting lower sales this quarter as demand for legacy semiconductors found in cars, industrial equipment and other devices remains weak. The first quarter could mark a low point for sales and margins but a rebound could be expected later in the year based on feedback from rivals, as well as automotive and industrial demand trends, the analysts say. STMicroelectronics shares trade 5% higher at 24.27 euros. (mauro.orru@wsj.com)

0532 ET - Delivery Hero's 4Q update proved to be reassuring for the Middle East whereas Korea's recovery remains uncertain, Bryan Garnier analyst Clement Genelot writes in a note. The German-listed delivery company's Middle East subsidiary, Talabat, delivered a strong performance, with continued margin improvement. Meanwhile, the Korean market remains tough due to customer decline after the end of free delivery for nonsubscribers, Genelot says. "This was anticipated, but the inflection point expected somewhere in the first half remains hypothetical," he says. Shares are down 5.1% at 29.80 euros. (najat.kantouar@wsj.com)

0434 ET - The dollar is little moved by President Trump's latest tariff threats as markets are optimistic his plans won't come to fruition, MUFG Bank analyst Lee Hardman says in a note. Trump said on Tuesday he is considering imposing tariffs of about 25% on automobile, semiconductors and pharmaceutical imports. He warned tariffs could go "substantially higher over a course of a year." Despite the potential disruptive impact from these plans, the dollar failed to strengthen much overnight, Hardman says. It likely reflects skepticism that Trump will follow through on his threats with such aggressive tariff hikes given "a lack of concrete action so far at the start of his second term." The DXY dollar index trades flat at 107.034. (renae.dyer@wsj.com)

0350 ET - Baidu's search market share could be threatened after Tencent's Weixin began tests to integrate DeepSeek's model, Daiwa analyst John Choi says in a research note. In January, 22% of Baidu's search queries were AI-powered but not monetized, the analyst notes. Although Baidu has followed suit to integrate DeepSeek into its search engine, Choi thinks the high-quality information from companies' and institutions' official accounts on Tencent's Weixin platform could attract more users in the long term, he says. Meanwhile, Baidu's move to make its next-generation AI model Ernie 4.5 open source amid fierce competition could weigh on its operating margin, Choi says. Daiwa lowers Baidu's rating to outperform from buy and cuts its target to HK$100.00 from HK$108.00. Shares last ended 2.05% lower at HK$88.35. (sherry.qin@wsj.com)

0237 ET - Germany's DAX index could come under pressure today after President Trump spoke about new tariffs on cars, pharmaceuticals and semiconductors, IG says. "With new statements from Trump about tariffs, the DAX could possibly be the big loser of the day, as cars and pharmaceuticals are a large part of the index." However, it's unclear when these tariffs would be implemented and more information will come on April 2, IG says. (dominic.chopping@wsj.com)

0051 ET - Will Semiconductor is well-placed to benefit from the increased prevalence of advanced driver-assistance systems in Chinese vehicles, Citi analysts say. The Chinese semiconductor company's OX08D automotive image sensor is used by carmakers like BYD, which recently started rolling out driver-assistance features on a significant portion of its models, they say in a note. Will Semiconductor could also be poised for further re-rating on the back of China's growing emphasis on supply localization, thanks to its leadership in both the auto and smartphone sector, they add. Citi maintains a buy rating on the stock and raises the target price to CNY180.00 from CNY135.00. Shares last at CNY153.90.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

2357 ET - Baidu's advertising revenue likely to improve in 2Q 2025, according to Citi analysts Alicia Yap in a research note. Core online advertising revenue declined 7% year-on-year in 4Q but that was in line with Citi's expectation. While 22% of all of Baidu's search result pages had AI-generative content in 4Q, monetizing that may not happen until mid-year as the company is prioritizing user experience over profit, Citi says. The negative impact from Baidu's generative AI search transformation is likely to have reached a floor in 4Q 2024, paving the way for a sequential improvement in search advertising revenue starting from 2Q 2025 after a seasonally soft 1Q, the analysts say. They keep a buy rating on the stock, with a target price of US$139.00. ADRs last traded at US$90.16. (tracy.qu@wsj.com)

2259 ET - Complementary Metal Oxide Semiconductor image sensors are likely to attract more attention from investors in 2025, Daiwa Capital Markets analysts say in a research report. Drivers include likely sustained recovery in global smartphone demand, the analysts say. Another driver is ongoing car smartification trend which will boost average selling prices of automobiles' CMOS image sensors and the number of such sensors per car, they add. Sony Group and Will Semiconductor are key beneficiaries. The brokerage raises target price on Will Semiconductor's shares to CNY180.00 from CNY165.00 with unchanged buy rating. It has an outperform rating and target price of Y3,700 on Sony Group's shares. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 19, 2025 12:20 ET (17:20 GMT)

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