Kim Bolton Snowflake SNOW-N TOP PICK Nov 20, 2024

Monday they announced a partnership with Nvidia to make customized AI applications for their customers.

Just bought more Snowflake. Free cash and operating margins are well above their peers. And yes, it's an AI play. It enjoys 34% profit revenue growth. And it's hated now. An opportunity now.

Pretty good runway from today's $127. Change in CEO. Need to give it at least one quarter, and maybe another, for earnings. Customer darling, but grew too quickly for customer service to keep up.

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.

The CEO is doing a good job, but they aren't putting up good numbers to raise shares. They have to put in a good year ahead.

Despite fantastic quarter, very expensive on any financial metric. PE of over 100, for 25-30% revenue growth. Free cashflow yield is very low at 1-2%. So you're really banking on earnings growth momentum continuing for the next 5-10 years. Risk from larger competing cloud players.

His 12-month price target is $228. Key player with the hyperscalers, but also gravitates over into the on-premises side of things.

Growing faster than expected: total revenues +27%, product revenue 28%. They guided 8% margin expansion, and this is the story going forward. It's been volatile, but are positioned well for 2025. They announced a partnership with MSFT.