Shares of Snap soared this morning after the firm finally reported a strong quarter as a public company. With some improvement in user growth and further automation of sales of Snap ads, we think the firm is slowly making headway toward providing a scalable and easily measurable platform. However, given Snap's continuing difficulty to further accelerate user growth, we remain convinced the firm lacks a network effect moat source. We see the shares as fairly valued today.
Disney shares on the other hand were up only modestly after the media giant posted inline results. The parks and resorts business saw strong 13% growth, as even Disneyland Paris contributed to growth, helping drive overall revenue growth of 3%. Management also disclosed that the regulatory process for the Fox deal has begun. We see shares of the wide-moat firm as attractive today.
We're planning a modest decrease to our fair value for Chipotle after the firm's fourth-quarter results, which sent shares sharply lower. The company remains in transition and its fourth-quarter update offered a few hints of stabilization that were overshadowed by unknowns. We're reducing our long-term margin assumptions, but that is offset by a lower tax rate and other adjustments. Shares are undervalued, but we'd recommended investors wait for a larger margin of safety before investing.