Wide-moat Adobe reported strong second-quarter results, including upside to guidance for revenue and non-GAAP EPS, and provided a better-than-expected third-quarter outlook.
Given exceptional results and strong guidance, we are once again raising our estimates, which drives our fair value estimate to $245 per share from $223. We still view shares as overvalued.
Revenue was strong, but margins were even stronger.
Our fair value estimate remains at $4,200 per share.
We expect it to continue to dominate its served markets.
We are again impressed by Amazon's earnings power as COVID-19 costs roll away.
Wide-moat Microsoft is benefiting from a second wave of digital transformation as well as strength in gaming, which helped the company once again drive material upside compared with its revenue and EPS outlook for the quarter.
We are maintaining our fair value estimate after Microsoft announced the acquisition of Nuance Communications, a leader in conversational artificial intelligence.
We see strength on all fronts of quarterly performance. New customer engagement levels remained strong and activity on adobe.com remains elevated as a result of the extended remote work environment. As software has lagged early in 2021, we see shares as increasingly attractive.
We expect Slack shares to move toward our fair value estimate as the closing date approaches.
We see a long runway for growth as the company gains traction with Zoom Phone and evolves its main application to a communication platform, and we are impressed by management’s ability to overdeliver in terms of both growth and margins. Given exceptional results, strong guidance, and our annual model roll, we are once again raising our estimates, which drives our fair value estimate to $223 per share from $176.
Wide-moat Salesforce reported solid fiscal fourth-quarter results, including upside to both revenue and non-GAAP EPS expectations. We are raising our fair value estimate to $265 per share, from $253, based on rolling our forecast and the solid near-term results and guidance.
Wide-moat Amazon reported strong fourth-quarter results, including material upside to revenue, an EPS blowout, and upside to its revenue outlook for the first quarter. Amazon also announced that CEO Jeff Bezos will transition to the role of executive chairman in the third quarter and will be replaced by Andy Jassy, CEO of AWS.
Microsoft is benefiting from a second wave of digital transformation as well as strength in gaming, which helped the company once again drive material upside compared with its revenue and EPS outlook for the quarter. Our fair value estimate moves to $263 from $235 per share.
Wide-moat Adobe reported strong fourth-quarter results, including upside to consensus for both revenue and non-GAAP EPS, and provided quarterly guidance that was ahead of Street expectations
Meanwhile, wide-moat Salesforce reported strong results, including meaningful upside to both revenue and non-GAAP EPS, while guidance for the fourth quarter was mixed.
We are maintaining our fair value estimate of $253 for Salesforce as good organic results are offset by the seemingly modest deleterious impact on shareholder value arising from the Slack acquisition.
We see a long runway for growth as the company gains traction with Zoom Phone and evolves its main application to a communication platform.
A variety of generally minor model refinements drive our Microsoft fair value estimate to $235 from $228 per share. We still see more than 10% upside to this high-quality wide-moat name.
Our fair value estimate remains for the wide-moat company, but we think the acquisition suggests gaming is becoming more important internally.
Wide-moat Adobe ADBE reported strong third-quarter results, and provided quarterly guidance that was generally in line with Street expectations. Given results, we are raising our fair value estimate to $400 per share, from $350.
We expect continued good results from the no-moat company and maintain our fair value estimate.
We still cannot support the current share price within our discounted cash flow model.
Based on strong results and guidance we are substantially raising our fair value estimate to $253 per share, from $202 for wide-moat Salesforce. That said, like many software stocks, shares of Salesforce have run and we view them as approximately fairly valued.
We are not immediately changing our fair value estimate for the wide-moat company.
While SMB generally remains weak, Azure remains strong, and gaming revenues surged as the global lockdowns continued throughout the quarter. Importantly, commercial bookings and RPO, two forward looking metrics, both grew in excess of revenues for the quarter. We remain impressed with Microsoft's ability to drive revenue and margins at this scale and we believe there is more to come on both the revenue and margin fronts. We raise our fair value estimate to $228 from $196 per share.
We are maintaining our fair value estimate of $202 for wide-moat Salesforce and view shares as attractive.
We are raising our fair value estimate for this wide-moat firm after an impressive first quarter.
Sharp sell-off leaves valuations attractive.
We now see an opportunity for investors to trade up into several high-quality stocks.
We are raising our fair value estimate to $202, from $186, based on rolling our model forward and modest adjustments, and view shares as attractive.
We bumped our growth and margin assumptions up throughout our model and as a result, raise our fair value estimate to $185 from $155.
The wide-moat firm's technology applies to many fields, and opportunities continue to appear.
We are maintaining our fair value estimate of $186 and view shares as attractive.
We believe wide-moat Microsoft is firing on all cylinders and remains a relatively safe harbor.
Shares are overvalued, and we encourage investors to consider other software stocks.
The wide-moat firm remains a safe harbor in a sea of rich software valuations.
Guidewire stands to profit as property and casualty insurers abandon legacy systems.
The software company seeks to upgrade a large and underserved government niche.
Wide-moat ServiceNow is the fastest organic growth story among the large-cap software firms we cover.
Solid revenue upside drove better margins for the wide-moat firm.
We're expecting the long-term trends to remain intact, and we still foresee very strong growth from Azure and Office365.
The wide-moat company is aiming beyond its dominance of content creation.
Very few companies the size of Microsoft that can offer 12% revenue growth and 15% earnings growth in each of the next several years.