Macroeconomic Headwinds Keep Pressure on Alphabet’s Advertising; Cloud Remains Bright Spot
Trimming fair value estimate on Alphabet stock to $154; shares undervalued.
Ali Mogharabi
Ali Mogharabi is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers Internet and software companies.
Before joining Morningstar in 2016, Mogharabi was a senior equity analyst for Singular Research, where he covered the technology and biotechnology sectors. His previous experience also includes roles as a senior equity analyst for B. Riley & Co., associate analyst for Roth Capital Partners, sales consultant for Oracle, and business development consultant for Aerospike.
Mogharabi holds a bachelor’s degree in economics from the University of California, San Diego; a master’s degree in business administration from University of California, Irvine; and a master’s degree in applied economics from the University of Michigan.
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Meta’s Q4 Earnings Beat Expectations; Growth Likely to Return in the Second Half
Stock undervalued with fair value estimate of $260.
Snap’s Q4 Earnings Show Top-Line Growth Came to a Standstill; Recovery Will Take Longer
Slashing Snap stock’s fair value estimate to to $16
Digital Ad Spending Slows, but Ad Technology Firms Win
These companies could benefit, even during hard times.
Meta May Be Fined, See Its Data Collection Policies Upended by European Regulators
Maintaining $260 fair value estimate, shares attractive.
Strong Q3 Indicates Uber May Be Resistant to Macro Uncertainties
Maintaining $73 fair value estimate on Uber stock; Shares remain attractive.
Slashing Meta’s Stock Fair Value Estimate to $260 From $346
Earnings for Q3 mixed, but strategy for metaverse a concern.
Alphabet’s Q3 Earnings Disappoint as Macroeconomic Uncertainty Hits Ad Revenue
Trimming fair value estimate on Alphabet’s stock to $160 from $169; shares undervalued.
Snap Earnings Disappoint for Third Consecutive Quarter
Fair value estimate on Snap’s stock maintained at $27; company missed on top- and bottom-line growth.
Risk of DOL’s Proposal and Reactions of Uber, Lyft, and DoorDash Stocks Exaggerated
We continue to view all three narrow-moat firms’ stocks as attractive.
Elon Musk Moves to Close Twitter Purchase at $54.20 per Share
We are raising our valuation of Twitter as the likelihood of either side now stepping away from the transaction is minimal.
Recovering Ride-Hailing Demand Should Benefit Lyft and Uber Stock
Morningstar’s analyst says both stocks are undervalued, although one is favored.
Uber’s Q2 Earnings Show Demand Growth and Little Impact From Inflation or Recession Fears
Maintaining $73 far value estimate on Uber stock; shares undervalued.
Pinterest Beats Q2 Revenue Expectations as User Monetization Continues To Improve
Stock is attractive as we remain confident that the firm can continue to differentiate itself and attract users.
Meta’s Q2 Earnings Show Advertising Softness and Weak Q3 Guidance; Turnaround in 2023
Reducing Meta stock’s fair value estimate to $346 from $384, but shares undervalued.
Alphabet Stock Is a Buy After Split
Google’s dominance in search is unmatched, and YouTube should boost the top and bottom lines, says Morningstar’s analyst.
Alphabet Misses Q2 Earnings Expectations, But Cloud Growth Impressive and Advertising Intact
Lowering Alphabet stock’s fair value estimate to $169 from $180 amid ongoing economic and geopolitical challenges.
Twitter Q2 Earnings Disappoint as Macro, Musk Issues Slow Ad Spending
Fair value estimate on Twitter’s stock cut to $44 on pullback in advertising demand; shares slightly undervalued.
Snap Stock Posts Disappointing Q2 Earnings, Cutting Fair Value Estimate to $30
Snap’s results raise more questions about social media advertising and outlook for the stock.
Musk Parting From Twitter Purchase, but Twitter Stock Remains Attractive
Lowering fair value to $47.
Google Could Be More Willing to Negotiate With DOJ
Stock still viewed as attractive, wide moat rating maintained.
Expect Minimal Impact on Meta From Sheryl Sandberg’s Departure
We are maintaining our $384 fair value estimate of the Facebook parent or our exemplary rating of the firm’s capital allocation.
Meta Stock: Time to Back Up the Truck?
Facebook’s parent is trading at just half of what Morningstar’s analyst thinks it’s worth.
Snap Warns of Disappointing Q2
We have lowered our fair value estimate, but still see shares as undervalued.
Musk Tweets Doubts About Twitter Deal
The Tesla CEO later tweeted that he remains 'committed' to purchasing the firm.
Uber Reports Strong Q1, Shares Undervalued
The firm’s driver count is now higher than at any point since the pandemic.
Lyft Guidance Disappoints but Market Overreacting
Lyft, along with Uber, are trading at attractive prices
Solid Twitter User Growth in Q1; Market Awaits Deal
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.
Meta’s Network Effect Is Sound; Shares Undervalued
We view this wide-moat name attractive as it is trading at less than half our fair value estimate.
Alphabet's Q1 YouTube Softness Is Temporary
Strong growth in search advertising and cloud were partially offset by higher-than-anticipated deceleration at YouTube.
Twitter Grants Musk His Wish to Take the Firm Private
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 Slightly Misses Q1 Expectations; FVE Down to $63
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.
Twitter Adopts Poison Pill, but Musk Has Other Options
Will Musk pursue the acquisition?
Elon Musk's Twitter Bid Adds to Uncertainty
We believe the probability of Twitter accepting the $54.20 per share offer is likely below 50%.
Elon Musk Declines Twitter's Offer to Join Board
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.
Elon Musk Acquires Sizable Stake in Twitter
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.
Mandiant Purchase Ups Google's Cybersecurity Offerings
This acquisition helps Google compete more effectively with Amazon and Microsoft.
DoorDash Reports Strong Q4; Raising Fair Value to $163
Demand for food delivery remains strong; we see this as undervalued.
Uber’s Q4 Results Beat Expectations; Shares Attractive
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.
Pinterest Beats Q4 Expectations; Shares Look Attractive
We expect profitability to improve in 2023 and beyond.
Meta's Mixed Q4 Results; $400 FVE
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 Beats Q4 Expectations; Fair Value up to $3,600
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.
Twitter Shares Fairly Valued After Jack Dorsey's Exit
The leadership change does not impact our view of no-moat Twitter. We are maintaining our $58 fair value estimate.
Uber Beats Q3 Top-Line Expectations; Shares Undervalued
We are maintaining our fair value estimate for Uber and continue to view this narrow-moat stock, along with its peer Lyft, as attractive.
Higher Ride Volume and Driver Increase Strengthen Lyft
We are raising our fair value estimate for the company.
Facebook Is Now Meta Platforms
We think the shares are attractive.
Strong Demand for WPP’s Services in Q3; FVE Maintained
We continue to view this narrow-moat stock as one of the most attractive among ad holding firms.
Twitter Benefits From Brand Advertising Uptick in Q3
We are maintaining our fair value estimate and recommend that new investors wait for a margin of safety before allocating capital to Twitter.
Alphabet’s Q3 Beats Expectations; Raising FVE to $3,400
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.
Facebook Missed on Q3 Revenue; New $404 FVE
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.