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.

1525 ET - Microsoft's investment in Open AI is sparking success, Morgan Stanley analysts Keith Weiss and Josh Baer say in a research note. The analysts raise their price target to $530 as they see increases in direct monetization and IT wallet share gains for Microsoft. The company is in a prime position for the upcoming GenAI innovation cycle as it makes strides in its Azure AI business, the note says. The analysts expect Microsoft to have a compound annual growth rate in the mid-teens as it remains disciplined with its spending. (natalie.weger@wsj.com, @NatalieWeger)

1324 ET - Equinix issued long-term guidance that came up short of expectations but Stifel's Erik Rasmussen believes its long-term prospects remain positive and that those targets will move higher. The digital infrastructure company's revenue outlook was generally as expected, but its adjusted funds from operations per share guidance through 2029 came in below, says the analyst. The latter metric is being impacted by an accelerated capital plan and higher borrowing costs on new investments and refinancing activity. Despite the expected drag on results in 2026 and 2027, Rasmussen believes the magnitude of the AI opportunity remains robust. "Given the company's history of outperformance, we believe there is opportunity to see AFFO trend higher over this forecasted period," adds the analyst. (denny.jacob@wsj.com; @pennedbyden)

1312 ET - BofA Securities says Equinix's longer-term guidance from the data center operator's investor day was disappointing but analysts remain constructive on the stock because of AI demand. They note that the new 2025-2029 revenue growth outlook was in-line with investor expectations but adjusted funds from operations per share guidance was below expectations, based on conversations they had. "Strong projected AI inference growth and commentary on customer demand justifies the investment and we view Equinix as a primary beneficiary of secular AI growth," the analysts say. Equinix slides 8.2% to $756.41, and is currently the worst performer in the S&P 500. (denny.jacob@wsj.com; @pennedbyden)

1146 ET - Deutsche Telekom is well-placed to continue to outgrow the German telecoms market over 2025 and into 2026, Berenberg analysts write in a note. The German telecom group is clearly outperforming its peers in the country, the analysts say. Unlike Vodafone and Telefonica, Deutsche Telekom has seen little impact from a regulatory change in the country that prevents landlords from bundling TV services with rental agreements, they add. The company's strategy shift to a value approach in Germany is seen as the right move and should benefit its German fixed line market as a whole over the next 12 months. DT and Telefonica shares are trading 0.1% lower, while Vodafone shares are up 1.6%. ( najat.kantouar@wsj.com)

1113 ET - Cellnex is likely to benefit from its long-term strategy, Berenberg analysts writes in a note. The Spanish telecommunications-infrastructure company has built up a solid portfolio that will allow it to raise prices in the future when contracts come up for renewal, the analysts say. The portfolio offers investors visibility on future earnings with a 105 billion-euro revenue backlog and an average contract length of 31 years, they add. However, they should note that Cellnex's shares tend to move in opposite direction of interest rates--especially U.S. bonds yields--which could hit short to medium-term performance, they say. Shares are up 0.6% at 33.05 euros. (najat.kantouar@wsj.com)

1039 ET - BT Group's cash flow is likely to rise sharply, potentially leading to higher shareholder returns, Berenberg analysts write in a note. Top-line earnings for Openreach--a London-based telecom company owned by BT--look robust and cost savings should allow Ebitda and cash flow to grow, they add. The German brokerage forecasts an acceleration in Openreach's Ebitda growth from 2% this year to 5% by the end of the decade. However, Openreach reported 243,000 line losses in the fourth quarter of fiscal 2025, they note. "BT's line losses dominate consensus thinking, but the issue seems overdone," the analysts say. Shares are up 0.8% at 192.55 pence. (najat.kantouar@wsj.com)

0955 ET - Micron delivers a solid quarter meeting elevated expectations, Wedbush's Matt Bryson and Antoine Legault say in a research note. The memory-chip maker recorded a big jump in sales and earnings in 3Q amid booming demand for AI-driven memory. The analysts note that their raised estimates coming into the print weren't aggressive enough as Micron outperformed their more optimistic projections, helped in part by better-than-forecast pricing trends. "And the better base in FQ3, in turn, yields a better outlook for FQ4, with Micron standing to again benefit from better ASP trends, better mix," say Bryson and Legault. Shares rise 1.5% to $129 in premarket trading. (denny.jacob@wsj.com; @pennedbyden)

0950 ET - Penn Entertainment has faced headwinds for years as it's been building its online business, but it's nearing an inflection point, Citizens' Jordan Bender and Eric Ross say in a research note. The gambling company has overpromised and underdelivered, say the analysts, "leading to a bloated cost structure and balance sheet." But several catalysts are near, including casino openings/growth and shareholder returns that should bridge the company into 2026. They add that the digital business can turn into a call option for value. "The stock is down 87% from its all-time high, yet we are nearing an inflection point in the story whereby we see 38% upside in shares," say the analysts, who upgrade the stock to market outperform from market perform and introduce a $24 price target. Penn Entertainment rises 2.8% to $17.88. (denny.jacob@wsj.com; @pennedbyden)

0920 ET - Micron Technology's 3Q results and 4Q outlook were well above most estimates, but the initial stock reaction suggests there were high expectations coming in, Stifel's Brian Chin and Denis Pyatchanin said in a research note. The memory-chip maker recorded a big jump in sales and earnings in the 3Q amid booming demand for AI-driven memory. Micron noted it expects to conclude the fiscal year with tight DRAM inventories, among other things. "We view the aftermarket reaction as not about disappointment, but rather high expectations into the print and upward estimate revisions that are now more reflective of a tighter DRAM market," say Chin and Pyatchanin, who raise their price target to $145 from $130. Shares are now up 1.8% to $129.49 in premarket trading. (denny.jacob@wsj.com; @pennedbyden)

0826 ET - European telecommunications companies seem likely to lift shareholder returns, Berenberg analysts write in a note. The German brokerage forecasts sustainable free cash flow average annual growth of 10% for the sector over the next five years, with potential dividend rises. "Debt rises in 2026, but then strong cash flow growth is expected by us to push debt and gearing lower," the analysts say. KPN, Deutsche Telekom, Vodafone, Cellnex, BT and Telecom Italia look well-placed for higher shareholders returns, they say. The Stoxx Europe 600 Telecommunications index is up 0.15%. (najat.kantouar@wsj.com)

0812 ET - The European telecommunications sector's outlook seems positive, Berenberg analysts write in a note. The segment is well-placed to improve cash returns over the next five years, the analysts say. This reflects the telecom industry's transition to a defensive growth approach from a defensive model, they note. "Sector defensive qualities are well understood by investors, but we are now entering a new phase for the sector, driven by improving cash returns," they say. The German brokerage forecasts sustainable free cash flow average annual growth of 10% for the sector over the next five years. The Stoxx Europe 600 Telecommunications index is up 0.15%. (najat.kantouar@wsj.com)

0730 ET - Tesla's successful robotaxi launch in Austin, Texas, sets the stage for growth, Benchmark's Mickey Legg says in a research note. While limited, Legg believes the electric vehicle maker's robotaxi rollout demonstrates a controlled and safety-first approach that will be key to winning over regulators and public opinion, and will allow a rapid scale up if achieved. Waymo, its main competitor in the robotaxi space, has the first mover advantage but the analyst says he's a believer in Tesla's camera-focused approach that is not only cost effective but also scalable. "In our view the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale," Legg says. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

June 26, 2025 16:50 ET (20:50 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.