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.
1450 ET – Disney thinks grouping streaming services and networks in larger bundles will lead to greater efficiencies, more subscribers and lower churn. Combining Hulu and Disney+ into a unified app should also create a better customer experience, through one tech and advertising platform, CEO Robert Iger says on an analyst call. The soon-to-be-released new ESPN service, which now includes NFL Network and Redzone, will also lead to better results across all its streaming, Iger says. “With ESPN and all of its programming bundled with Hulu and Disney+, we fully expect that engagement will increase,” Iger says. Disney has even had discussions with other media companies about bundling their sports platforms with ESPN, Iger says. (nicholas.miller@wsj.com)
1424 ET – Disney sweetened its better-than-expected F3Q earnings by raising its full-year adjusted EPS guidance, but maybe not by enough to please investors, says Citi’s Jason Bazinet in a research note. The company raised its full fiscal-year adjusted EPS outlook to $5.85 from $5.75, but investors may have been looking for $6, Bazinet says. The analyst also says Disney reported lower-than-expected sports revenue and entertainment revenue. Disney is off 2.5%.(nicholas.miller@wsj.com)
1407 ET – Snap’s advertising is looking weak compared to competitors, according to Oppenheimer. Analysts say the company blamed 2Q weakness on “accidental discounts” in April, but they also note that the recovery was muted in May and June. The analysts believe other platforms have more attractive returns on investment because they have more advanced AI ad targeting. Snap said it’s working on building its AI offerings, and launching new ad options like Sponsored Snaps. Snap slides 17%. (katherine.hamilton@wsj.com)
1306 ET – Advanced Micro Devices’ steady market share gains and ramp of new GPUs put it on track for further strong growth in the back half of the year, Benchmark analysts say in a note. The company should continue to gain traction across its core markets as it grows its business with Dell and as rival Intel continues to see its design and manufacturing operations struggle. At the same time, AMD is pursuing a highly anticipated ramp up for its competitive MI350 and MI355 series, with its MI400 expected to follow shortly after. “We see a lot about AMD for investors to be encouraged and excited about,” analysts say, raising their price target to $210 from $170. (kelly.cloonan@wsj.com)
1242 ET – Advanced Micro Devices’ 3Q sales forecast fell short of elevated expectations tied to reports suggesting significantly higher pricing for its newest GPUs, as well as assumptions that MI308 shipments to China would soon resume, Wedbush Securities analysts say in a note. Still, the guidance reflects a solid ramp up in data center GPU sales, even without assuming any MI308 export licenses are granted, the analysts say. The outlook “should be viewed as a positive outcome, particularly given the likelihood sales to China do eventually resume,” which would boost results for either the current quarter or future quarters, they say. Shares fall 7.3%, to $161.66. (kelly.cloonan@wsj.com)
1141 ET – Super Micro should see a growing sales opportunity for its data servers as model builders, cloud computing providers and governments multiply their AI spending, say Wedbush analysts Matt Bryson and Antoine Legault. That supports Super Micro’s $33 billion 2026 revenue guidance, but it’s unclear how much of the growing data server market it will continue to receive. Super Micro is facing greater competition, while new GPU models leave little room for differentiation in data servers, the analysts say. While the company aims to expand into internal data centers for businesses, Super Micro will likely struggle to compete against cloud providers for the enterprise market, the analysts say. (nicholas.miller@wsj.com)
1136 ET – Super Micro Computer’s fiscal 4Q revenue miss adds fuel to concerns about the company’s shrinking margins. Increasing competition in the data server market, especially from Dell, as well as more customers waiting for new GPU models to order data servers could cut into Super Micro’s gross margins, say Bank of America analysts Ruplu Bhattacharya and Wamsi Mohan. Additionally, as Wedbush analysts Matt Bryson and Antoine Legault note, tariffs and the growing cost of Nvidia content in data servers will further weigh on Super Micro’s margins, even as the company’s broader sales opportunity expands with growing AI spending. Bank of America reiterates its underperform rating. Shares sink 21%.(nicholas.miller@wsj.com)
1045 ET – Shopify is taking share and driving revenue growth which could be powered by shoppers getting purchases in ahead of the de minimis tariffs, Citi says in a report. “Shopify flew through any tariff/macro related uncertainties with a robust 2Q performance, driving accelerating revenue/GMV growth,” both of which reached the low 30s and are the highest since 4Q21, the analysts say. “Our initial read is this is a function of continued accelerated share gains, and potentially accelerated purchasing ahead of de minimis tariffs,” they add. The gains of the quarter should help boost investor sentiment, especially around concerns of higher operating expenses. Shopify surges 20%.(adriano.marchese@wsj.com)
0923 ET – Shopify President Harley Finkelstein says Shopify still has numerous avenues to tap to maintain its growth momentum. In an earnings call, the executive says current performance has been a product of investment over the past few years, which has allowed it to perform at a strong level. He says that enterprise and B2B are two strong pipelines for continued growth, especially after logging wins such as Starbucks and Canada Goose in the quarter. Moreover, Finkelstein says there are also new verticals that Shopify hasn’t traditionally been in. (adriano.marchese@wsj.com)
0915 ET – Uber is executing a barbell strategy. On one hand, the ride-hailing company is working to pass along savings to more price-sensitive customers, CEO Dara Khosrowshahi, says in an interview with CNBC. An example of this, he notes, is Uber’s new ‘Wait and Save’ option, which offers lower priced rides in exchange for longer pickup times. At the same time, “the premium business is doing really well,” Khosrowshahi says. “Premium is now over $10 billion, up 30%.” He adds that the company will continue to target both demographics to maximize earnings. (connor.hart@wsj.com)
0909 ET – “We’re not seeing weakness in the consumer,” Uber CEO Dara Khosrowshahi says in an interview with CNBC. “It’s steady as she goes, and for Uber, that’s great news.” The ride-hailing company says that both trips and gross bookings grew 18% year-over-year in the recent quarter, with upticks across both mobility and delivery. Currently, Uber is working to lower its insurance costs, Khosrowshahi says. He adds that these savings are being passed along to consumers in the form of lower prices, which are spurring demand. “In the U.S. in July, we’ve seen trip growth accelerate versus 2Q as a result,” Khosrowshahi says. (connor.hart@wsj.com)
0844 ET – Uber achieved all-time highs in platform audience and frequency during the recent quarter, CEO Dara Khosrowshahi says in prepared remarks along with Uber’s 2Q results. “Our monthly audience expanded to a record 180 million consumers, up 15% year over year, and those consumers used the platform more frequently than ever, averaging 6.1 trips per month,” he says. These trends resulted in top-line growth, which coupled with continued cost discipline, resulted in better profitability, according to Khosrowshahi. “Reflecting our continued confidence in the business, today we announced a new share repurchase authorization of an additional $20 billion as part of our sustained focus on value creation for shareholders,” he adds. (connor.hart@wsj.com)
