Snowflake (SNOW-N)

They beat (earnings up 71%, crucial product revenues 28%), and raised. Are gaining momentum.

They reported after today's close their third-straight strong quarter: top and bottom line beats, strong guidance this quarter and terrific full-year sales forecast. Is up 31% the past month. 

They report Wednesday. Their business is on fire.

12-month price target of $225.41. Amazing turnaround. New CEO is an engineering guy, who really understands what SNOW is 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 want to get taken anyway).

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.

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

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.

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.

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.

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.

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.

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.

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

A recent cloud summit and investor day weren't enough to turn around this stock; analysts liked what they heard but aren't confident enough that the company can move the needle soon.