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.

1510 ET – KPMG Canada’s chief economist Ali Jaffery says a dose of skepticism is appropriate when reviewing the federal government’s promise to increase the country’s GDP by 3% via over C$2 billion in spending on the domestic artificial-intelligence sector. The 3% rise in GDP, Canadian officials say, is linked to the unlocking gains in labor productivity through the federal AI strategy. That strategy’s centerpiece includes a C$500 million fund to help promising domestic AI companies, along with other expenditures. Jaffery says a long-term boost to Canada’s economy of 3% of GDP, or about C$200 billion, from a C$2-billion-plus in spending “seems like an extraordinary ROI,” or return on investment. He adds that if the C$2-billion-plus is aimed stimulating increased private-sector spending, “markets and businesses tend to reward credibility more than ambitious projections.” (Paul.Vieira@wsj.com, @paulvieira)

1236 ET – Thomson Reuters is showing that employment reality runs counter to recent AI-driven doom narratives in legal services, according to TD Cowen’s Vince Valentini. The analyst says in a note that AI adoption continues to scale rapidly among legal professionals, brushing aside fears that AI is taking services-sector jobs. “The data has yet to show that this increased adoption has led to a reduction in headcount,” he says. Valentini notes that Thomson Reuters’s peers are also showing healthy growth in their own legal segments. However, the analyst cautions that while the situation is positive for now, “the situation will need to be continuously monitored.” (adriano.marchese@wsj.com)

1230 ET – Oracle’s cloud-infrastructure ramp will be in focus ahead of the company’s fourth-quarter earnings report, Deutsche Bank analysts write in a note. So far, despite limited visibility, “Oracle appears to be delivering largely on schedule which should continue to build confidence in its execution as it aims to increase its pace ahead,” the analysts write. A healthy showing from the supply side should also prompt updated fiscal 2027 guidance, they write. “In our view, Oracle is entering the inflection point in its cloud buildout/investment cycle, which we expect to temporarily put pressure on margins and FCF over the next couple years,” they write, adding that investors are likely to have questions on financing and leverage. Oracle is down 8.5% to $216.30. (elias.schisgall@wsj.com)