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A weak revenue outlook in Snowflake's (SNOW -1.14%) last business update sent the stock price sharply lower. The share prices are down 20% year to date, but analysts at KeyBanc Capital Markets see a buying opportunity. KeyBanc initiated coverage of the stock with an overweight (buy) rating and a $185 price target, which are usually projections for where the stock might trade in the next 12 months or so. The new price target represents a 16% upside from Thursday's close. The firm likes the cloud provider's prospects as companies continue migrating legacy data systems over to the cloud. https://lnkd.in/gE6CepKv

3 Red Flags for Snowflake's Future by [email protected] (Leo Sun) via The Motley Fool ([Global] oracle cloud) URL: https://ift.tt/PpbIzUt It's been a tough four years for Snowflake (NYSE: SNOW). The cloud-based data warehousing company went public at $120 per share on Sept. 16, 2020, more than doubled on its first trade to $245, and touched a record high of $401.89 on Nov. 16, 2021. At the time, the bulls were impressed by its triple-digit percentage growth rates and investments in its IPO from Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and Salesforce (NYSE: CRM). The buying frenzy in growth and meme stocks amplified its share price gains and caused many investors to overlook its soaring valuation. Image source: Getty Images. But as of this writing, Snowflake trades at about $127. It has nearly taken a round trip back to its IPO price as its growth cooled off and rising interest rates compressed its valuations. Snowflake's product revenue, which accounts for most of its top line, soared 106% in its fiscal 2022 (which ended in January 2022) and another 70% in fiscal 2023, but grew by just 38% in its fiscal 2024. Management expects that deceleration to continue with just 24% growth in fiscal 2025. Snowflake mainly attributed the slowdown to macroeconomic headwinds, but its persistent losses and the abrupt retirement of its CEO Frank Slootman earlier this year prevented the bulls from coming back. I recently argued that investors might be getting too bearish on Snowflake -- but three red flags could hold its stock back for the foreseeable future. 1. Berkshire Hathaway has given up Salesforce gradually sold all of its shares of Snowflake throughout 2021 and 2022, but during that period, Berkshire Hathaway held on to all 6.13 million of the shares it picked up in the IPO. That only accounted for about 0.2% of the conglomerate's massive investment portfolio, but the bulls believed that its faith in the company indicated that it was still a worthwhile long-term investment. After all, Buffett rarely invests in tech stocks -- and previously, he only invested in blue chip tech companies like Apple, HP, IBM, and Oracle. That's why Berkshire's investment in Snowflake, a hypergrowth cloud stock without any GAAP (generally accepted accounting principles) profits, attracted so much attention. But in the second quarter of 2024, Berkshire Hathaway liquidated its entire stake in Snowflake. It still likely reaped a profit since Snowflake's stock traded at an average price of $147.69 during the quarter, but that would have been a disappointing result. That sale wasn't too surprising. Berkshire Hathaway has been selling a lot of stocks -- including half its stake in Apple and all of its HP shares -- to raise more cash over the past year. Buffett's conglomerate ended its latest quarter with a record $277 billion in cash and equivalents on its books -- so it might be keeping some powder dry for a potential ma...

Only put off until tomorrow what you are willing to die having left undone 🚀 Snowflake Inc. Skyrockets 📈 - Strong FCF Points to Massive Potential 💰 Snowflake Inc., a leading cloud data platform, demonstrated its financial prowess in Q3 by generating strong free cash flow (FCF). Analysts have used the company's Q3 performance and guidance to predict that Snowflake will achieve an impressive 44% FCF margin in Q4. This outstanding performance has caught the attention of investors, who believe that Snowflake's stock could be significantly undervalued. By applying Snowflake's historical 1.5% FCF yield metric, experts estimate that the stock may have the potential to surge over 26% to reach a value of $232 per share. 🌟 Don't Miss Out on Snowflake's Growth Potential! Act NOW! 🌟 As a seasoned investment advisor, I urge you to seize this opportunity to invest in Snowflake Inc. The company's impressive FCF growth and positive forecast indicate a bright future ahead. By investing in Snowflake, you can position yourself for substantial returns and secure your financial well-being. 💼 Maximize Your HSA with Snowflake Stocks 💰 By allocating a portion of your Health Savings Account towards Snowflake stocks, you not only enjoy the potential upside of the company's growth but also take advantage of the tax advantages offered by HSAs. Investing in innovative healthcare technology such as Snowflake aligns with the core principles of HSA investing – promoting health, wealth, and wellness for you and your family. ⚡️ Be Fearless! Invest in Snowflake Today and Secure Your Financial Future! ⚡️ #HSA #Investing #Healthcare #Health #Family #Wellness 💪📈🏥💰😊

🚀 Is Snowflake the next big thing in AI and cloud tech? With an impressive 33% stock surge, it's capturing investor attention. But what's fueling this rise? As the company aggressively integrates AI solutions, it shows potential for substantial growth. Think cutting-edge tech, powerful partnerships, and increased customer adoption. 📈🤝 Yet, with a valuation at 16x sales, it's higher than the industry average. Is this justified or risky? The answer lies in Snowflake's strategic balance of innovation and execution, making it a speculative play for 🚀 growth-seeking investors. Before diving in, consider how this aligns with your risk tolerance and portfolio goals. Snowflake isn't just about immediate gains; it embodies future-forward thinking. 🔥 Curious about how this tech giant might fit into your strategy? Click for more insights on what sets Snowflake apart and why there's a buzz around its AI potential! 💡 #InvestmentOpportunities #AIRevolution #SnowflakeStock 📊

Ubineer Corp. #AI predicted Snowflake 's next quarter revenue guidance with ~37 BPS ( or 0.37% ) accuracy!!! #TLDR 🎯: We were $3M off on a $810M Revenue guidance : - Snowflake's next quarter Product Upper #Guidance : $810 million - Ubineer Corp. #AI Upper guide Prediction: $813 million Can AI Predict Management Guidance? Yes!!! A common question I receive on LinkedIn from #portfoliomanagers or #chiefinvestmentofficers is whether our #AI can predict management guidance metrics and KPIs. The answer is yes! Ubineer Corp. excels in this area, though we typically refrain from publicly sharing these predictions. For example, Snowflake reported earnings right before NVIDIA today. And for both companies we were able to predict guidance Key Performance Indicators (KPIs) with remarkable sub-1% accuracy. Have a company you want us to tackle? Ubineer Corp.'s #AI can be a powerful tool, send me a DM if you want us to have a crack at predicting your favorite investment's KPIs, don't forget to like and repost... it spreads the 💜 . #AI #investing #SNOW #productRevenue #earnings #financialmodeling #stockmarket #AIpredictions #LinkedIn

Hello Snowflake Connections! Thought this would be interesting to share. Usually I am sharing news related to the new tech that Snowflake, Microsoft, and AWS are releasing, however its just as interesting the learn about the business side things! #data #snowflake

Only put off until tomorrow what you are willing to die having left undone. Strong Free Cash Flow Makes Snowflake Worth 26% More at $232 per Share In the third quarter, Snowflake Inc. showcased impressive free cash flow, setting a positive tone for its future performance. The company's guidance has analysts predicting a remarkable 44% free cash flow margin in the fourth quarter. By utilizing Snowflake's historical 1.5% free cash flow yield metric, experts suggest that SNOW stock could be valued at over 26% more, reaching $232 per share. With these promising figures, investors are urged not to miss out on the potential growth opportunities offered by Snowflake. The company's strong performance in generating free cash flow indicates its ability to generate profits and reinvest in its business. As the value of Snowflake continues to rise, taking action now can help investors capitalize on this upward trend. Investing in Snowflake through a Health Savings Account (HSA) presents an excellent opportunity to grow your funds while focusing on healthcare and wellness. By leveraging the power of technology and the cloud, Snowflake demonstrates its resilience and potential for long-term success. Don't let the fear of missing out hold you back; seize the chance to invest in Snowflake and secure a prosperous future for yourself and your loved ones. #HSA #Investing #Healthcare #Health #Family #Wellness 💪💰📈🔥🚀🏆

An incredible quarter for Snowflake! Our core business remains strong. Product Revenue for the quarter was $790 million, up 34% year-over-year. Given the strong quarter we’re increasing our product revenue outlook for the year 📈. As CEO, I charted three key priorities: 1️⃣ Listening to, and learning from, our customers: Snowflake is a critical and beloved platform in helping our customers run their business. I’ve had conversations with hundreds of customers over the past few months. The learnings are invaluable. The art of the possible for our customers on Snowflake is really incredible. 2️⃣ Driving execution and alignment within our go-to-market teams. I’ve spent a lot of time with our GTM teams, and together we are building and delivering at an incredible pace. 3️⃣ Fueling our innovation and product delivery. You’ve seen us deliver remarkable AI capabilities over the last few months. We’re only just beginning. Our AI capabilities are democratizing access and turbo charging capabilities for our customers. There is so much more to come. We just announced that Cortex, our AI layer, is generally available. Iceberg, Snowpark Container Services, and Hybrid Tables will all be generally available later this year. Are you ready to see what’s next? Join us in San Francisco for Snowflake Summit in June ❄️ https://lnkd.in/gs-n4cgx

Snowflake's Recent Earnings: A Perspective on the Market Reaction Snowflake's (SNOW -3.59%) recent earnings announcement and the subsequent tumble of its stock price have caught the eye of many. The company's shares plummeted from around $230 to $165 following the disclosure of not just underwhelming guidance but also the unexpected exit of CEO Frank Slootman. This steep descent raises eyebrows, especially for a company at the heart of AI's promising future. The question on many investors' minds: Is this sell-off an overreaction or a much-needed correction? On one hand, a 32% year-over-year revenue increase to $774.7 million and a high net revenue retention rate of 131% signal robust health and growing demand for its cloud-based data platform. However, the expansion of the quarterly operating loss and a Q1 revenue outlook slightly shy of analyst expectations have evidently shaken confidence. Yet, what seems to be overlooked in the flurry of reactions is the long-term view. Snowflake operates in a sector ripe with opportunity, especially with AI's unrelenting advance. The departure of a CEO, while notable, isn't inherently a signal of doom. Leadership transitions are natural, and as Frank Slootman himself noted, his successor, Sridhar, is more than equipped to steer Snowflake into its next growth phase. History is littered with examples, like Apple's post-Steve Jobs era, where companies not only survive but thrive following the change of a visionary leader. As investors and industry observers, we must strive to balance our assessments with both the immediate and the horizon view. The markets may react sharply to news, but the true value and potential of companies like Snowflake are often best measured in strides, not stumbles. Let's not allow short-term tremors to distract us from the long-term potential. #Snowflake #Investing #LeadershipTransition #MarketReaction #LongTermView

Snowflake built a game-changing data cloud platform from the ground up that others are still trying to copy. Now Snowflake is driving insane business-centric AI innovation velocity, built upon the original foundation. This is exactly the path organizations should be following - solidify the data foundation on Snowflake, and then commence with the AI strategy. Snowflake partners are building & delivering exceptional value. This ecosystem is unstoppable. DAS42 Snowflake