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.

0820 GMT - Futures linked to the tech-heavy Nasdaq-100 rise sharply after the U.S. and China agreed to suspend most tariffs on each other's goods pending further negotiations. The E-mini Nasdaq 100 futures contract is up 3.3% on Monday. Tech stocks had been under strain since U.S. President Trump in April levied tariffs on dozens of nations, including China, prompting Beijing to retaliate. Tariffs rattled tech investors who feared a trade war could destabilize supply chains and raise costs for both manufacturers and consumers. Nvidia shares are up 2.7% premarket at $119.74, while Apple stock is up 4.6% at $207.38. (mauro.orru@wsj.com)

0748 GMT - European technology stocks trade sharply higher after the U.S. and China said Monday they agreed to suspend most of the tariffs on each other's goods while further trade negotiations continue. Dutch maker of semiconductor equipment ASML rises 4.6%, while smaller peers ASM International and BE Semiconductor Industries gain 6.8% and 5.9%, respectively. European chip makers Infineon and STMicroelectronics both rise more than 6%. Meanwhile, Zurich-listed shares in computer-peripherals maker Logitech leap 6.4%, as news from the U.S.-China trade talks in Switzerland triggered broad-based gains across European stocks. (adria.calatayud@wsj.com)

0351 GMT - Naver's revenue growth could accelerate this year, as its search platform has room to grow thanks to search-quality upgrades, HSBC analyst Junhyun Kim writes in a note. The South Korean internet-platform giant may also gain from a recovery in commerce advertising growth, an expansion in gross merchandise value, and better monetization through higher take rates for online sellers, Kim says. He expects Naver's revenue to rise 14% in 2025, faster than an estimated 11% increase for 2024. HSBC cuts its target price on the stock by 6.7% to KRW280,000, citing valuation pressure on its search engine, but maintains a buy rating. Shares rise 0.1% to KRW191,100. (kwanwoo.jun@wsj.com)

0232 GMT - South Korean telecom giant KT may have most of its near-term positives reflected in its valuation, Nomura analysts Angela Hong and Won Kang write in a note. KT's 62% share-price rally for the past two years, outperforming benchmark Kospi's 4% gain for the same period, shows it has delivered on its structural reforms agenda through labor restructuring, monetizing real estate assets and streamlining its business portfolio, they say. Nomura downgrades its rating on the stock to neutral from buy, while raising its target price by 5.7% to KRW56,000 to factor in the company's continued earnings momentum and improved operational efficiency. Shares are flat a tKRW51,500. (kwanwoo.jun@wsj.com)

0223 GMT - SMIC is well positioned to capitalize on China's accelerating chip localization, DBS analyst Jim Au says in a research note. DBS expects SMIC's earnings to recover to $945 million this year despite pressure on average selling prices for wafers and rising depreciation expenses, the analyst says. Improving consumer electronics and smartphone end-market demand, alongside new product launches in China, are expected to outweigh this margin drag. Au thinks SMIC's utilization rate has bottomed out and will remain above 89% versus the global average of 76% in 2025. DBS upgrades SMIC's A-share rating to hold from sell and raises its target price to CNY83.00 from CNY50.01. Shares are last at CNY85.90. (sherry.qin@wsj.com)

0212 GMT - XLSmart Telecom Sejahtera may need time to realize synergies from its completed merger, UOB Kay Hian analysts say in a research report. The Indonesian telecommunication services provider is the merged entity of XL Axiata, Smartfren Telecom and its unit Smart Telecom. XLSmart Telecom Sejahtera could begin to report its performance as the merged entity in 2Q, the analysts say. The company earlier mentioned that the potential synergies could affect its operating and capital expenditures and its leases, the analysts note. The brokerage downgrades the stock's rating to hold from buy and lowers the target price to IDR2,400.00 from IDR3,300.00. Shares last closed 1.4% higher at IDR2,160.00. (ronnie.harui@wsj.com)

0117 GMT - Gentrack's contract pipeline is likely to be a focus of investors at the software company's 1H result, says Forsyth Barr. Gentrack hasn't confirmed a major customer for its g2.0 technology since Genesis Energy in 2023. So, analyst James Lindsay thinks Gentrack must provide confident messaging about the strength of its pipeline for investors to look through any near-term weakness in performance. Gentrack has been actively hiring in Bulgaria, Forsyth Barr says, raising hopes that a contract may be forthcoming there. "We expect Gentrack to retain its medium-term growth guidance but see downside risk to consensus revenue in FY 2025 if material contract wins have not been secured," Forsyth Barr says. (david.winning@wsj.com; @dwinningWSJ)

0052 GMT - Morgan Stanley analysts see a few options for News Corp. and its newfound net-cash position. They think that the market is underestimating the potential impact of what they say is the media conglomerate's first net-cash position for a long time. The business is less capital intensive and generating more free cashflow, they tell clients in a note. They suggest that, with its interest in Foxtel cable-TV divested, News Corp. could embark on M&A, reinvest in its existing business, or return capital to shareholders. MS keeps an overweight rating and US$37.00 target price on News Corp.'s U.S. stock, which last traded at US$32.57. News Corp.'s Australia-listed securities are down 2.3% at A$51.91. News Corp owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal. (stuart.condie@wsj.com)

0011 GMT - Naver is set to get an earnings boost from faster-than-expected improvement in the profitability of its subsidiaries, Daiwa Capital analysts Thomas Y. Kwon and Joon Lee write in a note. They raise their 2025 EPS estimate for the South Korean internet-platform giant by 5.8%. They expect Naver to drive strong earnings growth from 2Q by integrating AI features into its core platforms, monetizing its commerce and fintech user base, and expanding its business-to-business market shares in Korea and overseas. However, they lower their 2026 EPS estimate by 1.8%. Daiwa trims its target price on the stock by 2.4% to KRW279,000 and keeps a buy rating. Shares are 1.0% higher at KRW192,900. (kwanwoo.jun@wsj.com)

2329 GMT - Xero's bull at Macquarie expects the cloud-accounting software provider to reinvest for growth in fiscal 2026. A note from one of the investment bank's analysts tells clients that they expect the reinvestment to be outlined with guidance provided at this week's annual result. They say that they can already see 140 job ads for roles with the company. They have high conviction in Xero's growth story beyond the next 12 months, and think it is likely to improve traction in the U.S. thanks to changes in product, strategy and management. Macquarie has an outperform rating and A$191.90 target price on the stock, which is at A$172.41 ahead of the open. (stuart.condie@wsj.com)

2233 GMT - Domain's $1.9 billion takeover by CoStar could create a short-term overhang on REA Group shares, given the risk of more intense competition in property listings, says Jefferies. Still, analyst Roger Samuel still thinks REA's dominance is unlikely to be disrupted. "As it is pushing Audience Maximiser, which targets buyers across numerous sites online, it would further entrench REA's Number 1 position," Jefferies says. The bank retains a hold call on REA following its 3Q update, while its price target drops by 0.8% to A$246.10/share. REA ended last week at A$244.97. REA is controlled by News Corp, which owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 12, 2025 04:20 ET (08:20 GMT)

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