Tech, Media & Telecom Roundup: Market Talk

Dow Jones
18 Mar

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.

0817 GMT - Trustpilot reported excellent full-year results with an outlook that was also positive, Berenberg analysts say in a research note. The London-listed review website for businesses posted adjusted Ebitda that was 5% above the previously-upgraded consensus expectations and guides for a 2 percentage point increase in adjusted Ebitda margin for 2025. "Therefore, we increase our 2025 estimated adjusted Ebitda forecast by 8%," Berenberg says. The analysts increase the price target on the stock to 420 pence from 410 pence. Shares trade 14% higher at 314.50 pence. (nina.kienle@wsj.com)

0623 GMT - Douzone Bizon's revenue and operating profit growth may slow to single digits in 2025 from 14% and 60%, respectively, in 2024, CGS International's Joshua Kim says in a research report. The South Korean company's margin growth could be muted this year, as further outsourcing cost cuts seem limited and cost pressures are increasing from large-scale project transitions in its extended enterprise resource planning segment, the analyst says. Its current stock valuation of 29x estimated 2025 price-to-earnings also prices in "overblown" revenue contribution from artificial-intelligence services and further cost reductions in 2025. The brokerage downgrades the stock's rating to reduce from hold, and keeps the target price at KRW59,000.00. Shares are 0.9% lower at KRW57,700.00. (ronnie.harui@wsj.com)

1822 GMT - The recent decline in Chewy's stock price represents a good buying opportunity, Baird analysts say in a research note. The online pet-supplies company is well positioned to grow its top line and expand its margins in 2025, as the industry backdrop continues to normalize and the company leans further into marketing, the analysts write. They also say that pets are a resilient industry, and Chewy has strong recurring revenue streams and less exposure to tariffs than most retailers. The company, scheduled to report its 4Q results next week, remains a Baird "2025 best idea," the analysts add. Chewy is up 92% in the past 12 months. (connor.hart@wsj.com)

1735 GMT - Netflix's high subscriber count provides the streaming service with the ability to spend more on content. "Because it has more content, it drives better engagement, leading to more subscribers and possibly better pricing power in a virtuous cycle," MoffettNathanson analysts--describing what they dub "the Netflix flywheel"--say in a research note. Looking forward, the analysts believe Netflix can continue to add new users, in part because of the launch of its lower-priced ad-tier. Advertising, also, "should unlock a new runway of growth in the business for years to come," they add. An even higher subscriber count, combined with new revenue from ads, will "drive margins higher without any ceiling in sight." Shares rise 4% after MoffettNathanson upgrades Netflix to buy and raises its price target. (connor.hart@wsj.com)

1710 GMT - "Netflix has won the streaming wars," MoffettNathanson analysts say in a research note. "Case closed." This prompts the question, though: Where does the streaming service go from here? The company's future growth relies on sustaining growth in its core business, quickly ramping its advertising business and expanding its margins, according to the analysts. All of these objectives are possible, they write: "We believe its engagement will allow the company to better monetize and unlock greater profits in the years ahead." The analysts upgrade Netflix to buy from neutral and raise its price target to $1,100 from $850. Shares rise 3.6% to $950.56. (connor.hart@wsj.com)

1635 GMT - Shift4 Payments' rumored interest in a point-of-sale solutions provider is consistent with its M&A strategy, say D.A. Davidson's Peter Heckmann and Allison Heckmann in a research note. The analysts note that an Australian media outlet reported that the payments processor is interested in acquiring Smartpay. "We view the potential acquisition of Smartpay as very consistent with Shift4's M&A strategy to build the customer acquisition funnel by acquiring providers of older POS solutions and/or verticalized automation software," the analysts say. Any deal would come after Shift4 struck a deal for Global Blue Group, a tax-free shopping services provider, as first reported by WSJ. Shares tick up 0.4%. (denny.jacob@wsj.com; @pennedbyden)

1505 GMT - Investors could use U.K. stocks to diversify their portfolios as market volatility rises, although U.S. equities remain more favorable, UBS's Anthi Tsouvali says in a note. U.S. stocks have underperformed their U.K. peers so far in 2025 due to growth concerns in the U.S., with the U.S.'s S&P 500 index down around 3.5% while the U.K.'s FTSE 100 index is up around 2.6%. U.K. equities could act as a hedge in the current volatile environment, but their lower valuations makes U.S. stocks preferable, Tsouvali says. U.K. equities havelimited exposure to structural themes such as AI and electrification, aerospace and defence--which will benefit from European spending plans--, she says.(miriam.mukuru@wsj.com)

1421 GMT - Affirm still has some Walmart business after the retailer replaced it with Swedish-based Klarna. Affirm says in a filing that Walmart continues to use Affirm's pay-over-time products, which are also provided through its direct-to-consumer products, the Affirm app and card. OnePay, a fintech company majority owned by Walmart, announced that it had selected Klarna, to offer installment loan financing to customers of OnePay at Walmart beginning later this year. Klarna says the partnership will give Walmart's weekly U.S. customers and members flexible payment options for thousands of items both online and in stores--and will be directly integrated inside Walmart at checkout this year. Affirm Holdings tumbles 14%. (adriano.marchese@wsj.com)

1352 GMT - Science Applications International's raised guidance "is striking in the face of DOGE industry concerns that have caused an industry-wide selloff," says William Blair's Louie DiPalma in a research note. The technology company which provides IT, technical, and engineering services primarily to the U.S. government, raised the low-end of its prior guidance range for FY26 and now sees revenue between $7.60 billion and $7.75 billion as well as adjusted EPS between $9.10 and $9.30. "While the results and forecast are positive, we maintain our market perform rating due to the lack of visibility associated with DOGE, and specific contract headwinds," says DiPalma. DOGE has triggered the cutting of tens of thousands of jobs to reduce the size of government by $1 trillion this fiscal year. SAIC surges 12% in early trading. (denny.jacob@wsj.com; @pennedbyden)

1123 GMT - BCE will likely need to cut its dividend by at least half to return to a responsible balance sheet. The Canadian telco is widely expected to cut its dividend to improve its finances. In a Scotiabank report, Maher Yaghi says the company needs to have enough breathing room to pay down debt over time and face any potential expected and unexpected circumstances such as spectrum acquisitions or increased competitive pressures respectively, and for this reason the ideal cut is 50%. "Cutting 25 or 30% would not be enough... to clearly make a break of the old financial path and get back to one that will provide the resources to de-lever the balance sheet over time," he says. (adriano.marchese@wsj.com)

0952 GMT - Nvidia's artificial-intelligence conference this week is an opportunity for the tech giant to allay concerns about the outlook and demand for AI chips, XTB research director Kathleen Brooks writes in a note to clients. Chinese AI company DeepSeek rattled markets in January after it developed a model that it said nearly matched American rivals despite using inferior chips, casting doubt on the need to spend huge sums on advanced gear provided by Nvidia and other tech giants. Brooks says Nvidia now has a chance to fight back at the weeklong AI event in San Jose, Calif., known as GTC. The event will feature a keynote speech from Chief Executive Jensen Huang. Nvidia shares are up 0.9% premarket at $122.79. (mauro.orru@wsj.com)

0925 GMT - Nvidia shares edge higher Monday premarket ahead of a closely watched artificial-intelligence conference where the tech company is expected to unveil the next generation of AI chips. Shares closed 5.3% higher at $121.67 on Friday. Nvidia stock is up 0.9% Monday premarket, touching a high of $123.04. The weeklong AI event in San Jose, Calif., known as GTC, will feature a keynote speech from Chief Executive Jensen Huang. Nvidia showcased its Blackwell AI chips at last year's GTC conference, and analysts expect Huang to unveil a revved-up version of that family called Blackwell Ultra. (mauro.orru@wsj.com)

(END) Dow Jones Newswires

March 18, 2025 04:20 ET (08:20 GMT)

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