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.

1213 ET - Amazon's gross merchandise volumes are likely to face slower-than-expected growth from tariffs, UBS analysts say in a research note. They estimate around half or more of Amazon's products will be subject to some form of tariff, given a majority of the electronics, apparel and furniture Americans purchase is imported. That means most products on the site will have higher prices. "Consumers therefore might have to make more difficult choices on where to allocate their dollars," the analysts say. They lowered their estimates for GMV growth for this year and next year, and assume a general recovery in 2027. UBS lowers Amazon's price target to $253 from $272.(kelly.cloonan@wsj.com)

0620 ET - The cost of insuring euro credit against default using credit default swaps edges lower on potentially improved newsflow surrounding tariffs and ahead of earnings from major U.S. tech companies. "On tariffs, the latest newsflow was actually fairly positive at face value, as U.S. officials continued to sound optimistic about potential trade deals," Deutsche Bank Research analysts say in a note. A report in The Wall Street Journal also said President Trump could soften the impact of automotive tariffs by preventing duties on foreign-made cars from stacking on top of other tariffs, according to people familiar with the matter. The iTraxx Europe Crossover index which tracks euro junk bond defaults declines 2 basis points to 339bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0400 ET - Euro-denominated investment-grade services bonds have performed better than other investment-grade peers since the start of 2025 because U.S. trade tariffs only impact goods and not services, CreditSights' Mathieu Le Cann says in a note. Euro IG services bonds trade 7 basis points tighter than the overall ICE BofA euro IG index which tracks euro investment-grade bonds. "In the absence of first-order impacts from tariffs on most services companies, the sector stood among the most resilient during the period of peak spread volatility," CreditSights says. (miriam.mukuru@wsj.com)

0342 ET - Tencent's strong H20 chip inventory is likely to leave it less exposed to the latest U.S. export restrictions on the chip, DBS analysts say in a research note. DBS's channel check suggests that Tencent has more H20 inventory than Alibaba. The impact of the latest H20 restrictions is also limited as domestic substitutes for the H20 chip are rising, they say. Tencent's cloud business could show upside surprise on revenue growth this year after the huge capital expenditure deployed in 4Q, they say. DBS prefers Tencent to Alibaba given its higher upside in cloud growth and better adoption of AI in its core business. Tencent's shares are last 1.2% lower at HK$472.40. (sherry.qin@wsj.com)

0332 ET - Baidu is likely to benefit from strong AI demand, Nomura analysts say in a research note. They estimate that the company's cloud revenue grew 29% on year in 1Q, supported by its AI business, though advertising likely remained soft. The analysts note that the Chinese search giant remains optimistic about the AI outlook despite geopolitical risks, as shown at its recent AI event. Nomura says forecast risks are skewed to the upside, maintaining a neutral rating on the stock. It keeps a target price of $98.00 on ADRs, which last closed at $90.37. (tracy.qu@wsj.com)

2351 ET - Demand for data centers such as those operated by Australia's NextDC appears to be holding up amid recent economic uncertainty, Citi analyst Siraj Ahmed says. He points out that Alphabet's March-quarter results indicated that Google Cloud remains constrained by capacity, with the tech giant making no mention of any changes to demand due to macro shifts. Writing in a note to clients, Ahmed adds that Google also reiterated its capital-expenditure guidance, as expected. Citi has a buy rating and a target price of A$18.70 on NextDC's shares, which are up 2.4% at A$1167. (stuart.condie@wsj.com)

2336 ET - ResMed's expanded U.S. manufacturing footprint is seen by Goldman Sachs analysts as likely to further assist strong gross margin accretion at the breath-tech manufacturer. A 70bp expansion in 3Q gross margin was key to ResMed's stronger-than-expected profit for the period, they say. Keeping a buy rating on the stock, the analysts tell clients in a note that margin accretion to date reflects operating leverage from manufacturing capacity expansion, discipline on labor costs, and the optimization of raw materials. GS lifts its target price by 5.1% to A$49.30. Shares are down 0.7% at A$36.68. (stuart.condie@wsj.com)

2332 ET - Tencent will likely report 1Q earnings that are broadly in-line but a slight beat, Citi analysts write in a note. The company may see some upside risks on strong gaming revenues, they add. Tencent will likely release at least eight new games in 2Q, which could mitigate a high base effect from Dungeon & Fighter Mobile last year, they say. While macro and advertisement budget sentiment could be affected by a tariff overhang, the ads revenue could be supported by the shopping festival on June 28 and improving AI advertisement targeting, they add. Investors will be watching for its integration progress of DeepSeek and Hunyuan to Tencent's various applications, among others. Citi maintains a buy rating for the stock but cuts its target price to HK$670 from HK$681 after an estimates revision. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

1814 ET - Cadence Design Systems customers continue to charge ahead on their research and development investment despite a challenged macro environment. Customers recognize that today's R&D efforts are critical to delivering the groundbreaking products of tomorrow, CEO Anirudh Devgan said during the company's earnings call. He says semiconductors remain foundational to transformative technologies like hyperscale computing, 5G and autonomous systems. The company raised its full-year revenue and adjusted earnings outlook. Shares fall 0.8% in after-hours trading. (kelly.cloonan@wsj.com)

1345 ET - The movements of bitcoin and ethereum--two of the largest cryptocurrencies by market capitalization--have diverged in recent months. Since the start of the year, bitcoin is virtually flat, while ethereum has tumbled nearly 48%, according to data from CoinMarketCap. This difference in performance has brought the spread between bitcoin and ethereum prices to the largest since before the pandemic, and reveals the change in market perception around the roles of these tokens. That's partially because of ethereum's mechanisms which are eliciting higher regulatory scrutiny and therefore lower fund-investor interest, says Quasar Elizundia of Pepperstone in a note. "Without a comparable institutional catalyst or greater regulatory clarity, Ethereum may continue to lag," he says. Ethereum is down 2% over the past 24 hours, while bitcoin is down 0.4%. (kirk.maltais@wsj.com)

1248 ET - Alphabet's core search segment faces an array of pressures likely to drag on growth in the long term, Melius Research analysts say in a note. Beyond slowing paid click growth, ad sales are likely to fall as users focus on Google's AI summaries over clicking links, the analysts say. That's especially true if OpenAI were to launch an ad platform targeted to ChatGPT's massive user base, which is more than double that of Gemini's, according to the analysts. Such developments would weigh on cost-per-click growth, the main driver of overall revenue in search last quarter, the analysts say. Wall Street has yet to price in such risks to search, according to Melius. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

April 29, 2025 12:20 ET (16:20 GMT)

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