4 tech giants look cheap ahead of earnings

-- | 29/01/2019

Page 1 of 1

Jeremy Glaser: Earnings continue in full force this week.

Apple sent shock waves through the market earlier this month when the iPhone maker issued revised revenue guidance on the back of weakness in China. They will release full results on Tuesday, and Abhinav Davuluri sees shares as undervalued today.

Analyst R.J. Hottovy thinks Amazon is also undervalued ahead of its earnings report. He believes the disruptive firm will keep finding new sources of cash flow and continue to grow at an impressive clip, even if profitability won't always be predictable.

Microsoft has been on a roll recently, reporting broad-based strength across its businesses. Analyst Andrew Lange sees Office 365, Azure, and LinkedIn as major drivers with contributions from Xbox gaming, Surface, and Dynamics. Shares are currently trading at a discount to Lange's fair value estimate.

Our long-term view on Facebook remains bullish, despite the recent string of bad headlines. Ali Mogharabi is confident the firm will maintain its competitive advantages and remain one of the premier digital advertising players. They report on Wednesday.

Other earnings this week include McDonald's, oil majors Chevron and Exxon Mobil; Visa and Mastercard; telecoms Verizon and AT&T; Merck, Caterpillar, and 3M.

Stay tuned for our take on these stories.

This report appeared on www.morningstar.com.au 2019 Morningstar Australasia Pty Limited

© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written content of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). The article is current as at date of publication.