Microsoft remains impressive in its ability to drive both growth and margins at scale and we think there is more to come on both fronts. We see results as reinforcing our thesis centering on the proliferation of hybrid cloud environments and Azure, as the firm continues to use its on-premises dominance to allow customers to move to the cloud easily and at their own pace.
Although the company fell a little below our expectations in the fourth quarter, our fair value estimate remains.
This caused its share price to jump more than 30% on Jan. 24.
Our read on the 2022 guidance suggests slight disappointments within fees, expenses, and net interest income.
This was Baker Hughes' best quarter since its 2017 merger with GE Oil and Gas.
Netflix’s stock drops on slowing subscriber growth.
No-moat-rated American Airlines restored its network to a greater extent than peers during the fourth quarter but increased fixed cost utilization has not brought operating margins above zero just yet.
No-moat-rated United Airlines UAL posted a solid fourth quarter that met the firm’s pre-omicron variant guidance. We increase our fair value estimate to $57 per share from $55 to reflect Morningstar’s updated assumption that corporate tax increases will not occur.
While business is largely utility-like and highly stable, we do think there are some promising opportunities in 2022.
Inflation and supply chain shortages put pressure on the wide-moat company.
We think inflation pressures are feeding through from behind the scenes.
The group's shares continue to look moderately rich to us.
We like the Activision Blizzard acquisition, as Microsoft bolsters its already strong gaming division.
We are incorporating higher interest-rate expectations into our model.
For shareholders, we view the $95 price as fair, and we expect that regulators will heavily scrutinize the deal.
Our long-term pricing assumptions remain intact as we await further details from management on the Jan. 21 earnings call.
Investments will weigh on expenses in 2022, leading us to lower our expectations.
BlackRock closed out the December quarter with a record $10.010 trillion in managed assets.
We view the shares as undervalued, although we caution investors that the stock could intermittently come under pressure.
Increased contracts for COVID-related products are just part of the reason for the upgrades.
We think Toyota won out on sales due to the chip shortage and don't expect the company to maintain its lead over GM.
Our long-term outlook remains unchanged as we continue to expect sales growth will slow.
We believe the outlook is better than it appears.
We initiate coverage of Wendy's with a no moat rating, Standard capital allocation, and fair value estimate of $21.50 per share.
Our analyst views this as just one of several more likely purchases for the wide-moat drug maker.
While we believe Costco is among the strongest retailers from a competitive standpoint, we suggest prospective investors seek a more attractive entry point.
We're maintaining our fair value estimates for mRNA vaccine firms.
Mobileye is the market leader in advanced driver-assistance solutions and has compelling technologies for self-driving cars.
The firm's share price has fallen dramatically since July when a wide-ranging workplace discrimination and harassment lawsuit was filed.
The firm delivered generally solid results but also provided lower guidance for the fourth quarter.
While not the cheapest integrated oil company in our coverage, Chevron continues to present one of the safer options.
Non-GAAP operating margin was strong at 19.8%, flat compared to last year but more than 200 basis points ahead of our model. We remain more constructive than ever on the company's long-term margin potential, including 100 basis points of annual expansion, given management's recent focus and strong results in the face of the Slack acquisition.
We see shares as attractive and remain more constructive than ever on the company's long-term margin potential.
The leadership change does not impact our view of no-moat Twitter. We are maintaining our $58 fair value estimate.
What does this mean for leading vaccine makers Pfizer, BioNTech, and Moderna?
Merck’s updated analysis for its coronavirus treatment, molnupiravir, could aid Pfizer’s COVID-19 treatment, Paxlovid.
Shares of the narrow-moat company look fairly priced.
Industry conditions remain very favorable.
We are raising our fair value estimate for Nvidia to $200 per share on a probability-adjusted basis (up from $138), which includes a 50% probability that Nvidia closes its pending acquisition of ARM.
We are maintaining our $54 fair value estimate for narrow-moat Cisco Systems after its first-quarter results. Revenue growth was lower than we expected as Cisco was affected by supply chain challenges.
Between achieving net-zero and the rise of electric vehicles, what does the future for oil demand look like?
We believe the chain is in a good spot for continued store traffic growth as shoppers look for value.
After better-than-expected sales and profit results from the company’s third-quarter print, the company's FVE will be raised.
The company bought back $7.6 billion worth of its own shares during the quarter.
CEO resignation aside, we think the company's fundamentals remain solid.
The company also plans to scrap its dual share structure.
The surprise breakup will allow both new companies to operate with more focus and agility. We don't see this impacting our fair value estimate.
Even with the slower-than-expected subscriber growth this quarter, we still project robust long-term growth for the service.
Third-quarter results were weak, with net revenue falling 39% and pretax income declining 69% sequentially.
Increased competition from Nvidia could reduce Tesla's AV technological advantage and weigh on long-term growth.