Wide-moat Amazon AMZN reported second-quarter results that were within its guidance range but were slightly short of investor expectations for both revenue and operating profit.
Our view for the company is unchanged and we maintain our $570 per share fair value estimate and narrow moat rating.
We expect to raise our fair value estimate to $202 per share from $193 to account for continued improvements in the company's assets under management.
We continue to view the stock as undervalued with the market not appreciating Merck’s strong immuno-oncology position and developing pipeline, key areas that reinforce our wide moat rating.
However, commodity inflation clouds loom in the second half.
Wide-moat ServiceNow delivered strong results. After adjusting our model for results and guidance, we are raising our fair value estimate to $630, from $587.
We are raising our fair value estimate to $20 from $17 on higher revenue growth and improved 2021 profits, a 70-basis-point increase in our midcycle EBIT margin to 5%, time value of money, and a lower cost of debt.
We are raising our fair value estimate for Boeing to $260 per share from $257 as we raise our near-term targets for the defense business this year and we decrease our near-term working capital estimates.
We are increasing our fair value estimate of Facebook to $407 from $390. The firm reported better than expected second quarter top- and bottom-line results driven by user growth and growing monetization.
It’s reasonable to expect tapering to start toward the end of 2021 or beginning of 2022.
We expect to slightly raise Pfizer’s fair value estimate based on the strong growth, but we view the stock as largely fairly valued.
We're raising our fair value estimate to $234 per share for the wide-moat fast food company.
Wide-moat 3M had solid second-quarter results. However, we lower our fair value estimate to $195 per share from $199 due entirely to our probability-adjusted U.S corporate tax rate of 26% beginning in 2022.
We’re raising our fair value estimate for narrow-moat Advanced Micro Devices to $109 per share (up from $101) on a probability-weighted basis as we await AMD’s acquisition of Xilinx.
Quarterly strength along with upside to guidance and the annual roll of our DCF model drive our fair value estimate to $325 from $278 per share. We continue to see upside to this high-quality name from here.
An impressive increase in search ad revenue was accompanied by continuing growth in YouTube advertising and subscription revenue, combined with Google gaining further traction in the cloud market. We continue to believe the stock is attractive.
We anticipate raising our Starbucks fair value estimate to $109 from $107 prior, on operational improvements, an impressive ability to defray inflationary pressure, and sustained strength in consumer-packaged goods.
We are raising our fair value estimate for narrow-moat Apple to $124 per share from $115 as we incorporate a stronger near-term outlook due to the current 5G iPhone cycle and ongoing work- and learning-from-home dynamics bolstering Mac and iPad segments.
We slightly bump up our fair value estimate to $15.90 from $15.70 in what we see as a solid quarter confirming our bullish view.
While strong year-over-year results were largely due to comparisons against the lowest point of the pandemic, we see some positive signs even after adjusting for this.
We're raising our fair value estimate to $570 per share from $550.
We are slightly decreasing our fair value estimate.
Growth in Snap’s user count and user monetization were also impressive. We have increased our fair value estimate.
We're raising our fair value estimate, but we recommend new investors wait for a margin of safety before investing.
We are maintaining our $65 fair value estimate for wide-moat Intel and see the shares as modestly undervalued.
The strong performance was partly due to pandemic headwinds in the second quarter of 2020 creating weaker comparisons.
The firm has also announced additional strategic moves this week that should benefit the business.
We plan to raise our fair value estimate to reflect time value and increased guidance.
The company's second quarter was the strongest in four years.
The company continues to innovate across segments, adding support to its wide moat.
We see the new mobile games offering as a distraction at best from the core business.
In IBM’s second quarter, the company dealt with continued headwinds to its managed infrastructure business because of the option to now have public cloud providers manage workloads, while also benefiting from cloud tailwinds in its software and business services portfolio.
Though it has a positive medium- and long-term growth trajectory.
It reported strong Q2 results and high capital returns.
We are decreasing our fair value estimate for the firm by about 4.5% to $52.50 per share from $55 to account for Morningstar’s assumption of higher corporate taxes in the model and as we increase our near-term assumptions on fuel expense considerably to reflect higher oil spot prices.
We're maintaining our fair value estimate of $35 per share.
Wells remains our top pick among the traditional U.S. banks.
We are leaving our $880 per share fair value estimate in place.
We are increasing our fair value estimate for the wide-moat firm.
We’re increasingly viewing the stock as a quintessential buy-and-hold investment.
We expect gradual inventory improvement throughout the year.
We expect fewer vaccinations in Q4.
We continue to believe that antitrust and other regulatory risks are manageable and that Facebook’s share price already reflects these risks.
The increased fair value estimate comes from our outlook for higher long-term profitability in the automotive segment.
As all banks 'passed,' we expect sizable share repurchases to be forth coming, and dividend hikes are also on the table.
We think some estimates of the housing shortage are too severe.
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.
We think the proposed elimination of the 1031 exchange will have limited impact on U.S. REITs.
This decision adds certainty to related health insurance programs.
We expect to update the rate outlook in our banking models to incorporate rate hikes.