We think the gaming company’s stock is cheap, but investors should expect volatility.
Investment in streaming will limit margins, but shares remain undervalued.
We expect robust demand recovery in the next two years.
Firm put around $1 billion into Activision Blizzard, a stake now worth $1.4 billion based on Microsoft's $95 per share takeout price.
We think long-term investors should find shares of wide-moat Intel attractive.
We are maintaining our fair value estimates of $54 for Cisco and $175 for Splunk for now.
We think Splunk’s shareholders should hold out for a better offer.
We are maintaining our fair value estimate of $58 despite mixed Q4 results.
We continue to believe PG&E has some of the best growth prospects among U.S. utilities.
The fourth quarter marked the first since the pandemic that away-from-home volumes exceeded 2019 levels.
Disney kicked off fiscal 2022 on a strong note as Disney+ added 11.8 million customers in the quarter versus 8.3 million for Netflix.
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.
Although we like the company's AI and gaming prospects, shares remain overpriced after ARM deal falls apart.
Long-term growth concerns for the drugmaker cap our fair value estimate.
We are maintaining our narrow moat rating and $200 fair value estimate.
We expect profitability to improve in 2023 and beyond.
Snap’s fourth-quarter results surpassed both our top and bottom line estimates, showing resilience following mixed third-quarter results and marking 2021 as its first year generating positive free cash flow.
We felt fourth-quarter market expectations for Ford were too high and this proved correct. We are not changing our fair value estimate but will reassess all modeling assumptions once the 10-K is filed.
We are maintaining our fair value estimate for wide-moat Amazon AMZN at $4,100 per share and we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to raise prices in the U.S. on Prime.
We view the wide-moat company as slightly overvalued.
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.
We predict a significant decline in sales in 2023.
Sirius XM posted a slightly stronger than expected end to 2021 as revenue met and EBITDA exceeded FactSet consensus expectations. We are maintaining our narrow moat and raising our fair value estimate to $8 from $7.50.
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.
GM’s fourth quarter showed robust adjusted auto free cash flow of $6.4 billion and adjusted diluted EPS of $1.35 beat the $1.19 Refinitiv consensus. We are not changing our fair value estimate.
We continue to believe the narrow moat company is well-positioned to benefit from secular trends over time as we maintain our FVE.
This strong close to 2021 reopens the door to resume repurchases.
Will the deal close in the second quarter?
Our fair value estimate and moat rating are unchanged.
Here is why we are adjusting our forecast and fair value estimate for the wide-moat firm.
While we're upping Apple's fair value, the recent stretch of double-digit revenue growth will be difficult to maintain
Visa should be able to continue to achieve outsize growth in the near term as headwinds abate
We're maintaining our $352 fair value estimate for the wide-moat company.
We’re maintaining our fair value estimate of $700.
AT&T posted mixed fourth-quarter results and 2022 expectations. We are lowering our fair value estimate to $35 from $36 but still believe the shares are substantially undervalued.
Despite the difficult operating environment, which affects revenue negatively in the short term, we think strong demand will translate into future sales.
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.