The decline is likely driven by investors reducing exposure to high-growth, high multiple software stocks such as Snowflake, amid concerns of rising inflation and indicators that the Federal Reserve was ready to raise interest rates sooner, and get more aggressive about tapering its asset purchases.
Should you buy Snowflake stock?
With Snowflake stock, you should be more interested in long-term gains than a short-term pop. In the long run, it's a sure growth candidate. Three Stocks Even Better Than SNOW
When does Snowflake start trading?
This week is the busiest for the U.S. IPO market since May 2019. On Wednesday, Sept. 16, cloud-based data storage company Snowflake will start trading on the NYSE under the ticker “SNOW.”
Is Snowflake stock a buy?
Snowflake stock is considered a buy by many analysts. MarketWatch recently reported that 16 out of 30 analysts had a “buy” rating on Snowflake, while the other 14 had a “hold” rating, for a...
Should you buy snpw stock?
Snowflake stock is good for long-term investors. Snowflake is a growth company and has been out of favor with the markets. However, if growth stocks make a comeback, SNOW should see better days....
Why Snowflake stock is going down?
Instead, investors were likely reacting to a broader market sell-off, rising inflation, and an upcoming Federal Reserve interest rate hike. Those concerns helped send Snowflake's stock down 25.2% last month, according to data provided by S&P Global Market Intelligence.
What is the prediction for Snowflake stock?
Stock Price Forecast The 30 analysts offering 12-month price forecasts for Snowflake Inc. have a median target of 180.00, with a high estimate of 530.00 and a low estimate of 110.00. The median estimate represents a +39.08% increase from the last price of 129.42.
Is Snowflake a good stock to buy right now?
It's currently trading at an NTM revenue multiple of 31.3x, recovering from its recent March lows of 22.8x. Still, investors would point out that SNOW stock is still trading at a significant premium, given the steep compression in software stocks over the last six months.
Is Snowflake being shorted?
What is Snowflake's current short interest? Short interest is the volume of Snowflake shares that have been sold short but have not yet been covered or closed out. As of May 15th, traders have sold 9,690,000 shares of SNOW short. 3.61% of Snowflake's shares are currently sold short.
Does Snowflake have a future?
For the first quarter, Snowflake expects its product revenue to grow 79%-81% year over year. For fiscal 2023, it expects its product revenue to increase 65%-67%. Analysts expect its total revenue to increase 65% for the year, then grow another 57% in fiscal 2024.
Why is Snowflake so popular?
For general users, Snowflake provides complete ANSI SQL language support for managing day-to -day operations. It's cloud agnostic, with unlimited, seamless scalability across Amazon Web Services (AWS) and Microsoft Azure (with the prospect of adding Google Cloud soon).
Did Buffett Buy Snowflake?
Cloud-based data platform Snowflake (NYSE: SNOW) went public in late 2020 amid a ton of hype, including its rapid growth and backing from Warren Buffett, whose Berkshire Hathaway bought $250 million in shares at the IPO price.
Should I buy Snowflake Zacks?
Zacks' proprietary data indicates that Snowflake Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the SNOW shares relative to the market in the next few months.
Is Snowflake a long term hold?
In total, Snowflake has 4,990 customers, with 116 of those bringing in 12-month product revenue of more than $1 million each. With a strong bull case, Snowflake is demonstrating its potential to grow as a company and present a great long-term investment.
Did Salesforce buy Snowflake?
Salesforce placed a $250 million bet on Snowflake at the time of the software company's IPO in 2020. Salesforce sold most of its stake in 2021, but held onto about 5% of its holdings. As of the end of the first quarter, Salesforce owned no Snowflake shares, according to a filing, selling the rest as the market plunged.
Is SNOW overvalued?
The bottom line is that Snowflake stock is overvalued – though if you have already bought shares, don't be alarmed. The company is likely to catch up with its valuation in coming months, so there is no need to sell those shares.
Who owns Snowflake stock?
Top 10 Owners of Snowflake Inc.StockholderStakeShares ownedIconiq Capital LLC7.77%24,427,632Altimeter Capital Management LP5.42%17,041,796The Vanguard Group, Inc.4.74%14,925,288Morgan Stanley Investment Managem...4.27%13,440,3076 more rows
How much revenue did Snowflake generate?
But things got a little out of hand last year. Snowflake generated about $590 million of revenue in the fiscal year that ended in January. At its peak market capitalization of about $110 billion, the company was valued at a staggering 186 times annual sales.
How much is Snowflake worth in 2020?
At its peak, the company was worth over $100 billion. Things have not gone well since then. Snowflake stock slumped as 2020 came to a close, and the recent sell-off in high-flying tech stocks led shares of Snowflake to dive again.
Is Snowflake profitable?
The company also reported a net revenue retention rate of 168%, which indicates that its current customers are ramping up spending at a healthy rate. Snowflake isn't profitable, and the bottom line is only getting worse, but the stock market hasn't really cared about profits any time recently. Growth has been all that matters.
When will Snowflake's growth slow down?
At the company's Investor Day on June 10, 2021, Snowflake guided that its YoY top-line expansion will slow from +120% in FY 2021 (February 1, 2020 to January 31, 2021) to +30% in FY 2029.
What is Snowflake's 2021 10-K?
In its FY 2021 (YE January 31) 10-K filing, Snowflake refers to itself as a company that "provides a cloud-based data platform, which enables customers to consolidate data to drive meaningful business insights, build data-driven applications, and share data.".
How much will the cloud cost in 2025?
Gartner ( IT) forecasts that global cloud spending will more than triple from $106 billion in 2020 to $356 billion in 2025, which implies an increase in the proportion of public cloud spending as a percentage of total expenditures for software from 58% to 86% over the same period.
Is Snowflake a competitor?
In other words, Snowflake's key suppliers and vendors are also the company's competitors, notwithstanding the fact that SNOW does have an edge being an independent player unaffiliated with the technology giants. These internet giants also have a big impact on Snowflake's path to profitability.
Is Snowflake's future profitability related to revenue growth?
It is also important to note that SNOW's future profitability is linked to revenue growth as well. If Snowflake's future revenue growth is slower than expected, the impact of positive operating leverage effects will be less pronounced and this will translate into lower-than-expected profit margins in the future.
Is Snowflake stock undervalued?
It is hard to argue that Snowflake is undervalued now. It is also worthy of note that even the perpetually bullish sell-side analysts are not that positive on the company at the moment. Only half of the 28 analysts covering Snowflake have either Buy (Very Bullish) or Out-perform (Bullish) ratings on the stock.
Is Snowflake real?
On the positive side of things, Snowflake does deliver real value to its clients. According to an August 2020 Forrester Research ( FORR) study, SNOW has created value for four of its customers to the tune of $21 million in a three-year time frame, which translates to a Return On Investment of 612%.
