We are maintaining our $384 fair value estimate of the Facebook parent or our exemplary rating of the firm’s capital allocation.
Facebook’s parent is trading at just half of what Morningstar’s analyst thinks it’s worth.
We have lowered our fair value estimate, but still see shares as undervalued.
The Tesla CEO later tweeted that he remains 'committed' to purchasing the firm.
The firm’s driver count is now higher than at any point since the pandemic.
Lyft, along with Uber, are trading at attractive prices
We think the deal is likely to go through later this year, but the market may be pricing in the risk associated with that scrutiny.
We view this wide-moat name attractive as it is trading at less than half our fair value estimate.
Strong growth in search advertising and cloud were partially offset by higher-than-anticipated deceleration at YouTube.
Its board has unanimously given Musk the OK to take the company private in an all-cash transaction for $54.20 per share, slightly below our $58 fair value estimate.
Snap reported first-quarter results slightly below our projections due partially to the Ukraine war and various macro headwinds. We have reduced our fair value estimate for Snap to $63 from $66.
Will Musk pursue the acquisition?
We believe the probability of Twitter accepting the $54.20 per share offer is likely below 50%.
Twitter’s offer limited Musk's stake, which may have curbed his attempt to become more of an active investor and/or take over the firm.
We believe Musk's communication to the firm, other shareholders, and the platform's 217 million daily active users could affect Twitter’s long-term strategy.
This acquisition helps Google compete more effectively with Amazon and Microsoft.
Demand for food delivery remains strong; we see this as undervalued.
After adjusting our model, we are raising our fair value estimate to $73 from $69. Trading at 0.55 times our fair value estimate, we view narrow-moat Uber as attractive.
We expect profitability to improve in 2023 and beyond.
Meta Platforms, the parent of Facebook, reported mixed fourth-quarter 2021 results. Revenue was slightly ahead of expectations but the firm missed on the bottom line. We have slightly lowered our revenue growth assumptions for Meta, resulting in a $400 fair value estimate.
Alphabet reported strong fourth-quarter 2021 results, driven by continuing growth in search advertising, further YouTube monetization, and acceleration of Google cloud growth. We have increased our fair value estimate 4% to $3,600.
The leadership change does not impact our view of no-moat Twitter. We are maintaining our $58 fair value estimate.
We are maintaining our fair value estimate for Uber and continue to view this narrow-moat stock, along with its peer Lyft, as attractive.
We are raising our fair value estimate for the company.
We think the shares are attractive.
We continue to view this narrow-moat stock as one of the most attractive among ad holding firms.
We are maintaining our fair value estimate and recommend that new investors wait for a margin of safety before allocating capital to Twitter.
With further YouTube and other Google apps monetization opportunities and the firm’s increasing traction in the cloud market, we have slightly increased our projections, resulting in a 6% increase in our Alphabet fair value estimate to $3,400.
Wide-moat Facebook reported mixed third-quarter results and provided fourth-quarter revenue guidance below the FactSet consensus estimates. We reduced our Facebook fair value estimate by less than 1% to $404.
We're lowering the firm's fair value estimate.
While negative headlines over its policies will likely keep the social media giant under pressure, we view shares as undervalued currently.
Growth is priced into most valuations, but the top advertisers still have our attention.
While this transaction will improve Uber's liquidity position, it will not affect our fair value estimate of this narrow-moat stock.
We are maintaining our fair value estimates for Uber, Lyft, and DoorDash, and we expect the appeals process to be lengthy.
The firm reported mixed second-quarter results with revenue beating the FactSet consensus estimates, while losses were a bit more than expected.
We continue to view this narrow-moat name with a dividend yield of 2.6% as attractive.
We are slightly increasing our fair value estimate, and view the stock as attractive.
We believe the stock is becoming attractive, as it is approaching 4-star territory.
We are increasing our fair value estimate of Facebook to $407 from $390. The firm reported better than expected second quarter top- and bottom-line results driven by user growth and growing monetization.
An impressive increase in search ad revenue was accompanied by continuing growth in YouTube advertising and subscription revenue, combined with Google gaining further traction in the cloud market. We continue to believe the stock is attractive.
Growth in Snap’s user count and user monetization were also impressive. We have increased our fair value estimate.
We're raising our fair value estimate, but we recommend new investors wait for a margin of safety before investing.
We continue to believe that antitrust and other regulatory risks are manageable and that Facebook’s share price already reflects these risks.
As its network effect strengthens, we think the company can maintain its lead.
The two have already been trading at what we view as unwarranted discounts compared with their peers.
Uber's first-quarter top- and bottom-line results beat FactSet consensus estimates.
Demand for its ridehailing service continues to improve, indicated by a strong sequential increase in and steady monetization of riders.
Given strong demand from advertisers, which we think will be sustainable as the economy recovers, we have increased our projections.
Continuing strength in ad revenue due to the economic recovery, which drives more brand ad spending, and higher direct-response ad spending drove growth higher. The strong ad business was combined with the firm’s successful revenue diversification as the cloud segment is benefiting from digital transformation and wider adoption of cloud by businesses of all sizes.
While this may lower the effectiveness of ads, it will address some data privacy concerns.