Morningstar has been given a list of undervalued mega-caps on Amazon

Morningstar has been given a list of undervalued mega-caps on Amazon ...

So far this year, the S&P 500, which is dominated by mega-cap stocks, has dropped 17 percent.

While it''s only natural for investors to be embroiled in this move, there may be some buying opportunities.

Morningstar lists five market leaders among the ten largest markets, measured by market capitalization.

Meta PlatformsFB

Ali Mogharabi, a Morningstar analyst, has rated $384, according to a recent estimate of $193.80.

In a commentary, Meta continues to focus on metaverse opportunities in the long run but it is increasing its efforts and investments in its very profitable advertising business to overcome Apple''s obstacles and position itself to benefit from the growing short-form video trend.

The company gained a boost in users during the first quarter.

AmazonAMZN

According to a Morningstar analyst, Dan Romanoff''s fair value is $3,850, compared to a $2,145 increase recently.

In a note, Amazon dominates its service offerings, particularly for e-commerce and cloud services.

Aside from its size and scale, it offers a wide range of competitive advantages, which has made it the clear e-commerce leader.

TheStreet Recommends

Walmart Adds a Unique Taco Bell Menu Item

Review of Sonys WH-1000XM5: Epic Noise Cancellation, Rich Sound, and A Sleeker Design

Microsoft Unveils New Security Category

AlphabetGOOGL

Mogharabi, a Morningstar analyst, has put its value at $3,600, according to a recent estimate of $2,255.

Alphabets revenues soared by 23% year over year in the first quarter, boosted by advertising and cloud services.

The rise in ad revenue on YouTube slowed.

Despite the fact that management expects YouTube''s revenue slowdown to continue this quarter, it may accelerate in the fourth quarter, according to Mogharabi.

MicrosoftMSFT

According to a Morningstar analyst, Romanoff lays fair value at $352, compared to a $254.67 estimate.

Microsoft remains in command of growth and margins at an all-time high, and we believe there will be more to come on both fronts, according to Romanoff.

From the start of the quarter, the key components of our growth narrative include Azure, a 46 percent increase, and Dynamics 365, a 35 percent increase, compared to LinkedIn, however.

Berkshire HathawayBRK.B

According to a recent survey, Morningstar analyst Greggory Warren estimates fair value at $367.

$307.78. This year, unlike most stocks, it has increased, 3%.

In a note, we anticipate the years 2022 and 2023 to have a repeat of normalized revenues and profitability, with the acquisition of Alleghany [an insurance company] being added to the results in 2023 (due to the timing of the closure of the deal being set for the fourth quarter of 2022).

You may also like: