Tech, Media & Telecom Roundup: Market Talk

Dow Jones
Oct 17

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.

1301 ET - Healthcare is ripe for AI improvements, representing one of the most attractive markets for further technology investment, BofA Securities analysts say in a note. Healthcare is wildly inefficient with slow drug development, doctors overburdened with administrative tasks and a claims system that's overly arduous and time-consuming, the analysts say. Additionally, more than 95% of the industry's enormous wealth of data goes unused and is processed manually, they say. As AI integrates further with healthcare systems and allows for more complex use cases, demand for compute and storage will increase greatly, they say. They estimate the healthcare AI market could reach $1 trillion by 2035. (kelly.cloonan@wsj.com)

1254 ET - Hewlett Packard Enterprise CEO Antonio Neri went on CNBC Thursday to spin the company's disappointing outlook. The server and cloud-software company expects revenue to rise 5% to 10% in its coming fiscal year, down from a projected 14% to 16% increase this year. Neri argues, though, that this guidance is pro forma. "What that means," he says, is that the company "reset the baseline, based on the fact that we only include the four months of Juniper in our 2025 results. And so, we wanted to be very transparent of the fact that the growth rate will be in that, you know, high-single digits." Shares fall 11%. (connor.hart@wsj.com)

1244 ET - In 3Q, the median asking rent in New York City reached $3,599, up 5.4% from a year ago, according to Realtor.com. While New York rents fell sharply during the pandemic, prices now sit 20.2% higher than before the pandemic. Rents increased across all boroughs in the past year, with Brooklyn leading the way at 6.8% growth. Smaller apartments--those with up to two bedrooms--saw the largest gains, with median rent climbing 6% year over year to $3,581, compared to just 1% growth for larger units. Renters paying today's median NYC rent could afford a home priced between $400,000 and $690,000 in many popular markets nationwide. Those renters could afford the monthly costs associated with buying a home in Philadelphia--$286,000; Pittsburgh--$276,000; Orlando--$391,000; and Myrtle Beach--$289,000. (chris.wack@wsj.com)

1046 ET - Cineplex's move to sell its Cineplex Digital Media unit unlocks further value for the company, TD Cowen Derek Lessard says in a report. The Canadian movie theater chain will get C$70 million in cash from Creative Realities for CDM. "We are not surprised by today's announcement as we viewed the segment as noncore and an opportunity to put the proceeds to work in other areas," Lessard says, while adding that the move also brings flexibility to the balance sheet. It also opens the door to more shareholder returns, likely in the form of buybacks, he says.(adriano.marchese@wsj.com)

1014 ET - Salesforce is innovating on its AI products, but the customer experience still is not living up to management's glowing commentary, say D.A. Davidson analysts Gil Luria and Clark Wright. Customers have said Salesforce's Agentforce AI agent platform has had "limited success at scale partially due to customer related technology bottlenecks and issues implementing AI to achieve desired business outcomes," the analysts say. Customers are still in the early adoption phase of Salesforce's AI tech, and as a result it likely won't be a significant driver for the company through 2027, according to the analysts. Meanwhile, Salesforce's goal of 10% plus organic growth CAGR through FY30 may be overly ambitious, the analysts say. Salesforce surges 7% in early trading.(nicholas.miller@wsj.com)

0945 ET - Filtronic's shares have potential to continue rising, Berenberg analysts Jon Byrne and Scott Humphreys say. The U.K. defense and aerospace telecom-equipment company recently emerged as a leading supplier to the space industry, including Elon Musk's SpaceX, the analysts note. In August, Filtronic signed a $62.5 million contract with SpaceX, its single largest order to date. This provides it with a runway to continue its recent high growth, aided by growing opportunity in the defense market, they add. Berenberg initiates coverage of Filtronic's stock with a buy rating. Shares are up 5% at 1.35 pounds. (cristina.gallardo@wsj.com)

0818 ET - The biggest obstacle limiting businesses' embrace of AI isn't the technology capability, but the lack of adoption by employees, says Bank of New York Mellon Chief Executive Robin Vince on a media call. "The technology is moving so rapidly that adoption is probably the bottleneck," Vince says, adding that Bank of New York Mellon has focused on providing significant training and knowledge to employees to help them adopt AI. "I do think that the pace of innovation industry-wide is outstripping the pace of adoption, and at some point there has to be a catch up in that regard," says Chief Financial Officer Dermot McDonogh. (nicholas.miller@wsj.com)

0705 ET - Deutsche Telekom is likely to reaffirm its group-level guidance when presenting upcoming third-quarter results, Bank of America Global Research analysts write in a note. However, the German telecommunications group could take a more cautious stance on near-term domestic targets amid high competitive pressure, they say. In Germany, capex is likely to rise as DT accelerates fiber deployment in rural areas. This increase should be offset by lower cash taxes due to bonus depreciation, leaving cash flow targets unchanged, they add. The U.S. bank forecasts fixed service revenue growth of 0.3% and EbitdaaL growth of 0.8%--down from around 2% in the second-quarter--before a likely rebound in fourth quarter. Shares are up 0.5% at 29.55 euros. (najat.kantouar@wsj.com)

0610 ET - Grab could benefit from Delivery Hero's Foodpanda potentially exiting Singapore and Malaysia, promoting DBS to lift its 2026 group adjusted Ebitda forecast for Grab by 11%, now 28% above market consensus. Grab's expansion in solo meal delivery and grocery services strengthens its lead in Foodpanda's core areas, notes DBS analyst Sachin Mittal, saying Foodpanda's Ebitda is unlikely to break even in the two countries. The scaling of GrabMart and dine-out offerings should further lift margins in 2026. DBS maintains a buy rating on Grab's shares, raising its target price to $7.55 from $6.35. Grab closed at $5.92 overnight. (kimberley.kao@wsj.com)

0608 ET - RELX results are likely to ease investor concerns about potential AI disruption, Bank of America Global Research analysts write in a note. The London-listed information-and-analytics group appears less susceptible to be exposed to AI interference due to its high-value content and data and a decades-long presence in high-stakes industries, they say. Additionally, momentum in the company's legal division should accelerate into 2026, helping to counter remaining AI concerns, they add. The analysts expect commentary in the upcoming nine-month update to reinforce confidence in sustained growth. Shares are down 0.3% at 33.62 pounds. (najat.kantouar@wsj.com)

0545 ET - TSMC is taking a disciplined approach to expanding capacity amid soaring AI-related demand, Morningstar analyst Phelix Lee says after the chip maker's 3Q results. Management emphasized that it's engaging more closely with indirect customers to validate end-market demand signals and avoid overbuilding. The analyst thinks it's "a prudent strategy aimed at balancing capacity expansion with sustainable returns." Meanwhile, management opted not to elaborate on 2026 capex plans. The analyst thinks this restraint aligns with the company's cautious stance amid heightened enthusiasm around AI. He says Morningstar's estimate of high-single-digit capex expansion in 2026 remains consistent with current indications. TSMC's shares closed 1.4% higher at NT$1,485.00. (sherry.qin@wsj.com)

0452 ET - Citi expects iQiyi's 3Q earnings to weaken as higher spending on diversified summer content drives costs up to CNY4 billion, analysts write in a research note. The bank now forecasts adjusted net loss for the period to reach CNY143 million, wider than its previous CNY18 million loss estimate. Content costs have risen in 3Q as the video-streaming platform introduces more diversified content to consumers during the summer holiday season, they note. Citi maintains a buy rating, and slightly adjusts its target price of iQiyi's ADRs to US$2.7 from US$2.8. The ADRs last traded at US$2.14. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

October 16, 2025 16:50 ET (20:50 GMT)

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