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.

0806 GMT - ProSiebenSat.1 Media's neutral stance on PPF Takeover Bid isn't surprising, Equita analyst Milo Silvestre writes in a note. The media company said the Czech investment conglomerate's bid didn't reflect its earnings potential and long-term value. The German broadcaster seems to be more confident about medium-term prospects, including growth in the digital and streaming sector, he says. Shares remains unchanged at 7.05 euros. (najat.kantouar@wsj.com)

0457 GMT - The long-term growth outlook remains promising for China's online travel agency segment, which has already seen meaningful consolidation, HSBC Global Research analysts write in a note. JD.com announced its intention to enter the industry, offering hotels under its JD Hotel Plus program zero commission for up to three years, they add. China's online travel agency industry has been experiencing years of competition and consolidation, which started with Meituan's aggressive expansion in 2016, followed by TikTok's ambitions in 2023, they say. The competitive landscape stabilized last year, with both Meituan and TikTok raising their fees to those charged by existing industry players, the analysts say, adding that JD.com will likely chart a similar course.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

0425 GMT - The semiconductor sector is likely in the early stage of a downcycle, Morningstar analyst Phelix Lee says in a research note. Valuations of chip manufacturers have declined amid uncertainty about U.S. tariffs, he says, fueling fears about chip demand and long-term investments. "Capital spending by select U.S. and Chinese tech firms are slated to exceed $300 billion in 2025, growing more than 40% year-on-year, posing a much higher hurdle to sustain the momentum into 2026," Lee says. These signs point to "a cautious demand outlook for the next 24 months," he adds. Morningstar thinks investors should opt for best-in-class stocks such as TSMC and GlobalWafers.(sherry.qin@wsj.com)

0416 GMT - Naver is likely to benefit from South Korea's government-led artificial-intelligence initiatives, HSBC analyst Junhyun Kim writes in a note. The South Korean internet platform company is expected to play a key role in the government's AI infrastructure build-out, as a former Naver executive has been appointed as a senior presidential aide for AI policy, Kim says. The analyst also points to Naver's track record of successfully bidding for AI projects in South Korea, Saudi Arabia and Thailand. He remains positive about Naver's capability to operate large-scale data centers. HSBC raises the stock's target price by 7.1% to KRW300,000 and keeps a buy rating. Shares are 4.3% higher at KRW254,000. (kwanwoo.jun@wsj.com)

0343 GMT - Xiaomi's management indicates that the impact of Chinese subsidies targeting consumption has started to fade, Citi analysts write in a note. The company says the government measures had the strongest impact within the first one to two months and the effects are ebbing. Citi notes 1Q smartphone sales in China only grew 3%, indicating the stimulus impact on smartphones has been limited. Xiaomi thinks 1Q sales growth for the smartphone and Internet of Things segments was largely driven by a stronger product line rather than subsidies. The company remains confident in a 1-percentage-point increase in market share for smartphones and full-year sales growth of 25%-30% for the IoT sector. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0220 GMT - Malaysia's tech industry is poised for a stronger 2H, supported by improving revenue trends, front-loading activity and a broader semiconductor recovery, RHB IB analysts Lee Meng Horng and Miza Izaimi say in a note. The sector now offers an attractive risk-reward ratio and compelling valuations following the selloff in tech stocks, they say. Sector earnings are expected to grow 2% in 2025 and 40% in 2026, with potential for rerating as global uncertainties ease. Despite tariff risks, Malaysia's strong ecosystem and role in supply-chain shifts could continue to offer upside, the analysts add. RHB maintains an overweight rating on Malaysia's tech sector. Its top stock picks are Malaysian Pacific Industries, Unisem, CTOS Digital and Coraza Integrated Technology. (yingxian.wong@wsj.com)

0148 GMT - Malaysia is likely to remain a key data-center hub despite reports of Chinese companies using local facilities to train AI models in order to dodge U.S. chip curbs, says MIDF Research analyst Royce Tan Seng Hoo in a note. While awaiting official clarification, he believes older Nvidia chips were used, possibly to accelerate work ahead of the now-rescinded U.S. AI diffusion framework. The withdrawal of the Biden-era rule curbing the export of sophisticated AI chips is positive for the data-center value chain, he adds. Tan notes no signs of project delays, and contractors are still actively bidding for new data-center construction. MIDF maintains a positive rating on Malaysia's construction and utilities sectors, and expects continued momentum in data-center investments and related infrastructure. (yingxian.wong@wsj.com)

0139 GMT - LG Electronics' 2Q earnings may miss street views largely due to weaker sales of televisions, Daishin Securities analyst Kangho Park says in a note. Higher prices of liquid-crystal-display panels also likely suppressed profit margins for the South Korean consumer electronics giant, Park says. Restocking demand for home appliances likely slowed in 2Q following a rush of orders in 1Q ahead of higher U.S. tariffs, the analyst adds. He expects LG's 2Q operating profit to fall 27% on year to KRW870.30 billion, below the market consensus of KRW953.80 billion. Daishin cuts the stock's target to KRW115,000 from KRW120,000 but keeps a buy rating. Shares are 1.1% lower at KRW73,000. (kwanwoo.jun@wsj.com)

0132 GMT - The next few months look to be crucial for Australian broadband providers Superloop and Aussie Broadband, Citi analysts say. They tell clients in a note that price increases and promotions timed to coincide with the end of Australia's financial year on June 30 raise the prospect of heightened volatility in customer churn and net additions. That said, the Citi analysts reckon that the value proposition of both companies make them well placed to navigate the backdrop. (stuart.condie@wsj.com)

2300 GMT - Smart glasses with voice capabilities seem like a natural fit for agentic AI, BofA Securities analysts say in a note. Smart glasses have the potential to shift typed queries to faster, more conversational voice interactions, often delivering just one result rather than a long list, the analysts say. That likely shift means tech giants will battle for leadership in both smart glasses and their platform operating systems with embedded agentic AI capabilities, the analysts say. Their view comes after Google re-entered the smart glasses market last month, joining Meta, Snap and Amazon. (kelly.cloonan@wsj.com)

2155 GMT - Meta is likely in the best spot to benefit from a shift toward agentic AI in the near-term, BofA Securities analysts say in a note. With over 1 billion users, Meta AI Assistant could serve as a consumer-facing entry point for agentic AI task delegation and goal completion as the company embeds it across chat, search and feed, the analysts say. New use cases would boost engagement, and over time, the assistant could expand product discovery and ad buying behavior for further revenue streams, they say. Meta's work to fully automate ad campaigns will also expand its reach to advertisers who previously lacked the resources to manage digital campaigns, they say. (kelly.cloonan@wsj.com)

0851 GMT - Nordic Semiconductor's operational growth potential is underestimated by the market, Berenberg analyst Meha Pau writes in a note. The Norway-based semiconductor's recent restructuring is likely to boost the Ebitda margin, the analyst says. The reset includes new leadership and a workforce reduction. The German brokerage forecasts Ebitda margins to swing to 18% in 2026, driven by revenue recovery and gross margin expansion. Berenberg initiates its stock coverage with a buy rating and a target price of 165 Norwegian krone. Shares are down 3.9% at 134.10 krone. (najat.kantouar@wsj.com)

(END) Dow Jones Newswires

June 19, 2025 04:20 ET (08:20 GMT)

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