Tech, Media & Telecom Roundup: Market Talk

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.

0814 GMT – Chinese social-media company Newborn Town could face some short-term headwinds, Citi analysts say in a research note. They highlight the company’s first-half revenue guidance, which triggered a 6% drop in the share price the following day. With revenue from social networking 3% below Citi’s estimate for 1H, the analysts think the market may demand more evidence on the monthly active user trend for key social-networking products, as well as updates on new product releases for the social-networking business. “Additional concerns over visibility for short-drama monetization and AI investment target may drive near-term stock-price volatility,” they say. Citi keeps a buy rating but lowers the target price to HK$13.00 from HK$16.00 given the sector’s derating. Shares fall an additional 5.8% to HK$8.18. ([email protected])

0658 GMT – SAP’s miss on earnings before interest and taxes and on-year margin compression are unpleasant surprises, J.P. Morgan analysts say in a research note. The German business-software company said its second-quarter margin was abnormal due to cost pressures and cost containment measures that are now in place, J.P Morgan says. However, “full-year EBIT guidance does require second-half EBIT growth to re-accelerate from the second-quarter level,” the analysts say. ([email protected])

0411 GMT – Intel’s planned capacity expansion should benefit chip tester AEM’s earnings, DBS analyst Amanda Tan says in a note. Intel raised its 2026 capex to over US$20 billion from US$18 billion after its 2Q results. Although front-end manufacturing will account for the bulk of investment given the higher cost of wafer fabs, Intel also expects to expand backend capacity, which flows through to AEM, which counts Intel as a major customer, the analyst says. Meanwhile, DBS thinks Intel’s comments is a positive signal for the broader semiconductor industry. AEM’s other customers could experience similarly robust AI-driven demand. AEM’s shares are last down 0.9% lower at S$8.79. ([email protected])