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SnowflakeSNOWHOLDMay 24, 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
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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