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Snowflake
SNOW-N
HOLD
May 24, 2024
Stock price when the opinion was issued
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Snowflake Inc. provides a cloud-based data platform in the United States and internationally. The company's platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Its platform is used by various organizations of sizes in a range of industries. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana. Social media mentions are up 106% in the past 24h.
Big downtrend, trying to break it. $124 is a critical level for this stock; if it can get above, suggests that the stock will take off afterwards. If you own, definitely don't sell. If looking to buy, watch over the next month.
He'd rather pay more for a stock on confirmation that it's working, than try to catch the bottom. So here, he'd rather pay $130, than pay $119 and watch it go down to $100.
Cloud-based, data platform provider. Infrastructure and platform as a service. Also AI machine-learning integration. Chart shows how it's rolled over. Change in the CEO, and then the CRWD data breach. Very deep pockets, $3B in cash. Profitable, free cashflow. Never seems to lose customers. In acquisition mode. 41% haircut this year, great value. No dividend.
(Analysts’ price target is $172.36)12-month price target of $225.41. Amazing turnaround. New CEO is an engineering guy, who really understood what SNOW was all about. Leading cloud-based data platform provider; helps data move seamlessly, faster, and with less energy. February earnings blew it out of the park, then got tangled up in tariff rhetoric.
If you own it, absolutely hold. If you don't, sell some puts (and you wanted to get taken anyway).
EPS of 14c missed estimates of 19c; sales of $828M beat estimates of $786M. Snowflake's product-sales growth of 34% was above consensus, yet its full-year view appears conservative. Top-line acceleration in 2H hinges on the successful deployment of its own large language model, Arctic, which is much smaller than other foundational models. Competition from hyperscale-cloud providers that bundled their LLM-based analytics offerings could pressure Snowflake's pricing in the near term. The product gross-margin view downgrade by about 100 bps to 75% for the full year was driven by higher GPU-related costs. A net expansion rate of 128% in fiscal 1Q25 reflects a slowdown in the consumption of credits by its existing customer base. Remaining-performance obligation gains improved slightly to 46% as Snowflake continues to do well with renewals at large enterprise customers. Yesterday was a very strange market day, and we would not take cues from the trading on Thursday.
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