Weekly Wrap: Alphabet and Facebook Show Their Digital Dominance

It was a busy earnings week, and the Fed held pat as expected at its meeting. Here's a look at what Morningstar's analysts think of the latest news.

We saw upbeat results from

Google has been benefiting from the continued move toward mobile devices and the growth of video.

Facebook keeps adding users and reinforcing its wide moat. We raised our fair value estimate for the firm this week but still think investors should hold off for a better entry point into the shares.

, adding a net of zero last quarter. Shares tumbled on the report.

Food safety issues continue to weigh on

… the probable national launch of queso in 2018 (backed by a national advertising campaign), mobile ordering, better utilization of its second assembly line, and minimal resistance to recent pricing increases (reinforcing our narrow moat rating).

And although he warns of the potential for volatility, he sees the possibility of opportunity for longer-term investors.

As for

… the comp acceleration across international lead (6.3% growth), high-growth (7%), and foundational markets (13%). This is significant because many of these markets are further along with Experience of the Future (EOTF) and delivery efforts, which offers a positive read-through for the same initiatives (along with mobile order and pay) as they are launched in the U.S. later this year. In our view, the stage is set for mid- to high-single-digit systemwide comps over the next 12-24 months.

We raised our fair value estimate, but shares still look fairly valued.

Premium members can see our analysts take on all of the week's earnings here.