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.

1147 ET - Netflix is looking to accelerate user engagement with a new slate of content and programming, UBS analysts say in a research note. Engagement, or hours viewed per day, was up 1.8% in the first half of the year, compared with a 4.5% increase in the second half of 2024, the analysts say. The streamer's wider range of content and its investments in live programs should support engagement gains, the analysts say. Netflix's price per hour of viewership is still sitting at the lower-end of its streaming peers, which should support its ability to better monetize those viewing hours, the analysts say. (dean.seal@wsj.com)

1123 ET - Netflix's guidance raise following a strong 2Q report might still reflect some conservatism in its outlook, given the robustness of its content lineup and its growing ad revenue, JPMorgan analysts say in a research note. The raise looks primarily driven by forex tailwinds from the weakening of the U.S. dollar, they say. Subscriber growth also drove some of the outlook lift, though net additions in 2Q were weighted toward the end of the quarter, the analysts say. Strong advertising momentum also drove the lift, but off of a small revenue base, they say. The analysts think the stock could use a breather after their strong year-to-date performance. Shares fall 4.9%. (dean.seal@wsj.com)

0951 ET - Netflix's 2Q performance may not have been as exceptional as people were expecting, but it's hard to quibble with the directional results given its slight revenue beat and big operating income outperformance, Benchmark analyst Daniel Kurnos says in a research note. Management's commentary suggests that member growth has some upside coming as its content slate is heavily weighted to the back half of the year, the analyst says. Some of that upside probably drove the company's guidance raise, he says. The analyst believes more member and operating income gains are to come over the balance of the year assuming the broader streaming environment stays stable. (dean.seal@wsj.com)

0937 ET - Netflix shares are weaker despite strong 2Q results and guidance raises, likely because investor expectations seem to have been "significantly elevated" heading into 2Q results, Benchmark analyst Daniel Kurnos says in a research note. Revenue only beat estimates slightly, but operating income outperformed by almost $150 million, Kurnos says. The negative stock action could also be partially driven by the majority of the beat coming from foreign currency translation rather than member count or monetization, the analyst believes, or from the limited 2Q growth in viewing hours, though the company notes that it has a back-half weighed slate. Netflix sinks 4.7% in early trading. (dean.seal@wsj.com)

0806 ET - Vivendi is likely to benefit from the French market regulator's decision, which increases the chances of a buyout, AlphaValue analyst Alexandre Desprez writes in a note. The AMF's decision requires Bollore Group and Vincent Bollore to file a buyout offer for the stake they don't already own in Vivendi within six months. The move boosts an already attractive investment case for the French company, which has long been significantly undervalued for misguided reasons, the analyst adds. Vivendi shares are up 12.5% while Bollore shares are trading 0.3% lower. (najat.kantouar@wsj.com)

0520 ET - Tencent's continuous AI investments in its consumer-facing products could have some impact on its margins, Barclays analysts say in a research note. In the past quarters, Tencent has been growing its gross profits and operating profits at much faster rates than its revenue, as the company targets higher-margin businesses and operational efficiency, they say. But the gap between operating profit growth and revenue growth will likely narrow in 2Q and 2H, they say. However, the analysts think these investments are "absolutely necessary to stay ahead in the AI race in China." Barclays maintains an overweight call on Tencent's ADRs, but lowers its target price to US$77.00 from US$90.00. ADRs last ended at US$66.27. (sherry.qin@wsj.com)

0509 ET - Telia continues to perform well, with sound strategic moves, ING analyst Jan Frederik Slijkerman writes in note. The Swedish telecommunications operator has delivered solid second-quarter results, he says. Additionally, the company agreed to sell its Latvian operations and made an offer to buy Swedish internet-service provider Bredband2 for 3.11 billion Swedish kronor in cash. Both transactions make strong strategic sense, the analyst adds. However, the overall impact on the company's balance sheet is expected to be limited, he says. Shares are up 4% at 34.69 Swedish kronor. (najat.kantouar@wsj.com)

0236 ET - TSMC is likely to raise wafer prices by around 3%-5% globally in USD terms given strong demand for advanced chips and unfavorable foreign-exchange rates, Morgan Stanley analysts say in a research note. They think TSMC's gross profit margin next year will be significantly above its guidance of "53% and higher" following the potential price hike. Nvidia's resumption of H20 chip shipments to China is good news for TSMC given the country's sizable AI market, the analysts add. AI graphics processing units in China are expected to contribute 2%-3% of TSMC's revenue in 2025. Meanwhile, TSMC's planned $165 billion investment in the U.S. could increase its chances of a tariff exemption, the analysts say. MS raises the stock's target price to NT$1,388.00 from NT$1,288.00 while maintaining an overweight rating. (sherry.qin@wsj.com)

0020 ET - Taiwan's export performance could remain healthy even after front-loading demand wanes, ANZ's Bansi Madhavani says in a note. Although the record run in Taiwanese exports this year was driven partly by front-loading activity ahead of U.S. tariffs, underlying demand for semiconductor products is central to the island's export demand, the economist says. Madhavani expects Taiwan to reach some form of a trade framework or an interim arrangement with the U.S. ahead of the Aug. 1 deadline, with the original 32% reciprocal tariff negotiated down. "The key watchpoint of such an arrangement will be whether semiconductors continue to remain exempt from tariffs." (sherry.qin@wsj.com)

2301 ET - Singapore's adoption of artificial intelligence could help sustain GDP growth of around 3% in the medium term and unlock further productivity, Morgan Stanley analysts and economists write in a note. The city-state is among the top AI markets globally. AI powers many public services in Singapore, including chronic health management systems in hospitals and adaptive learning systems in schools, they say. Morgan Stanley sees Singtel taking the lead in building AI infrastructure, noting that it is expanding its data-center capacity in Singapore.(amanda.lee@wsj.com)

2234 ET - Malaysia's tech industry is showing resilience and remains a top relocation hub amid global uncertainties, according to Desmond Chong of UOB Kay Hian. That is largely thanks to its strong ecosystem, robust talent pool and geographic neutrality, he says in a note. Orders also remain largely intact across the value chain despite U.S. tariffs and a fluid landscape, the analyst adds. Chong sees improving earnings visibility into year-end, especially for equipment makers and outsourced semiconductor assembly and test companies. Trade diversion and policy support are potential upsides. UOB KH maintains an overweight rating on Malaysia's tech industry, citing an improving growth visibility and undemanding valuations that offer attractive entry points. (yingxian.wong@wsj.com)

2204 ET - Alibaba unit Damai Entertainment's growth could be boosted by robust sales related to Japanese manga series Chiikawa, Citi analysts write in a note. The analysts see strong potential in Chiikawa to become among the top three revenue contributor IP for Damai's subsidiary Alifish. Chiikawa is a popular IP in Japan and Hong Kong, and Alifish has the rights to promote, sub-license, and sell merchandise of Chiikawa in mainland China, they note. Citi expects the series to contribute between 100 million yuan to 200 million yuan in revenue in FY 2026, with potential margin upside after FY 2026. Citi moves Damai's rating to buy from buy/high risk on improving growth prospects, and raises the target to HK$1.40 from HK$0.92. Shares were last at HK$1.19. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 18, 2025 12:20 ET (16:20 GMT)

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