Ali Mogharabi

Ali Mogharabi is a former senior equity analyst for Morningstar.

More From Ali Mogharabi

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.

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.

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.

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.

As its network effect strengthens, we think the company can maintain its lead.

Continuing strength in ad revenue due to the economic recovery, which drives more brand ad spending, and higher direct-response ad spending drove growth higher. The strong ad business was combined with the firm’s successful revenue diversification as the cloud segment is benefiting from digital transformation and wider adoption of cloud by businesses of all sizes.

Uber reported mixed fourth-quarter results as the firm missed top-line expectations but beat FactSet consensus estimates on the bottom-line. We have slightly increased our projections and rolled our model forward, increasing our fair value estimate to $67 from $61.

More About Ali Mogharabi

Ali Mogharabi is a former senior equity analyst for Morningstar.* He covered 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 included 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.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc.

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