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SnowflakeSNOWRISKYMar 06, 2024
Stockchase InsightsStock price when the opinion was issued
As of Aug 27, 2026. Market Open.
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Transitioning from cloud data warehouse to AI data cloud. Consumption model, rather than number of seats model, starting to show AI leverage. AI is being optimized. Competition concerns from the private company Databricks. He thinks there's enough business for both. No dividend.
(Analysts’ price target is $331.45)
Nick Mersch, CFA(The theme of today's Top Picks is cybersecurity, which is going to be a big deal. All the AI systems will have to be made more secure. Each of today's picks has already had a good run.)
Security for the cloud as customers build, use, and share data there. A bit pricey. Don't buy it all today, you have to tier in your position by thirds. Buy a bit here, more at $250, and finally around $240. His 12-month price target is $294. No dividend.
Kim BoltonEnables organizations to consolidate data into a single source, and allows other applications to work better together. Short runway to price target. Next earnings not until August 26. Sell some calls; if you don't want to get called away, just roll the strike price up.
Nice moat, not a heck of a lot of competition. Makes so much sense, enterprise (not consumer) software. But the nosebleed territory causes some angst.
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Premium contentIn the last quarter, the company reported 0.39 USD per share, beating the 0.32 USD estimate by 22.15%. Revenue for the same period reached 1.39 B USD, despite the estimate of 1.32 B USD. For the next quarter, analysts expect 0.42 USD in earnings per share and 1.44 B USD in revenue. Social media mentions are up 2,663% in the past 24h.
It reported today good numbers, including a terrific annual product revenue forecast, then shares rose, then lost those gains and then some. Their platform is essential for building AI tools. They announced major partnerships with Anthropic and OpenAI. But shares are -40% since October's highs.
Key player within cloud and data centres. Cloud-based data storage with analytic solutions on top. Like a DDOG, but allows companies to manoeuvre more efficiently through the cloud. Owns it, but it's rich. His price target is ~$260-270.
He'd buy in around $246 and definitely just in front of $231-233. Your final third would be ~$215-220, at which point he'd absolutely recommend.
Kim Bolton
Not much competition in its space. 12-month price target of $311.50, still some runway left.
Kim Bolton
NOW has been under tremendous pressure after the recent earnings release due to a combination of CEO replacement (effective immediately) and weak forward guidance, SNOW is now expected to grow by more than 20% over the next few years.
Despite EBIT loss (largely due to stock-based compensation), SNOW generates healthy cash flow, on the trailing twelve-month basis, they actually repurchased shares quite meaningfully to offset SBC. Valuation is not cheap, trading at 20x Price/Sales. We think SNOW’s business model is solid, but would not be in a hurry to add here given the uncertainty in the forecast and management.
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