Should you buy Snowflake stock? (March 2024)

Snowflake stock analysis. Ticker: $SNOW

Snowflake just reported earnings and the stock dropped 18%. At the current price, the company has a market cap of 68 billion dollars. With 4.8 billion of cash and investments and no debt, the enterprise value is 63.2 billion.

Revenue over the last 12 months grew 36% to 2.8 billion with 813 million of free cash flow. However, net income was negative -836 million, mainly due to a large chunk of stock based compensation.

At first glance, Snowflake earnings look pretty good. 4th quarter revenue was up 32% year over year, gross margins improved to 78% and the company achieved a best in class retention rate of 131%. But there were two pieces of news that spooked investors.

First, was the resignation of highly regarded CEO Frank Slootman and second was company guidance for 2024. Full year revenue is expected to grow only 22% this year to 3.25 billion.

22% growth may sound decent but for a company valued at 23 times revenue, it’s probably not enough. And it continues the long term trend of decelerating revenue growth. Considering the recent boom in AI there’s a concern that Snowflake may be losing out to competitors like Databricks.
However, there could be another way to interpret these results.

#investing #stocks #stockstobuy #3mb

[ogtaylor]

I love 3mb. Wish I'd had this 25 years ago.
I send this channel to every investor I know. Its under viewed. Well done 3MB

[Its_me_prithvi_]

Waiting for ur 3-6 stocks ur buying in March 2024

Like you generally provide 😊 every month waiting for that

[the_stock_geek]

You're 3 minute analysis is so well done - a good starting place for any investor. You should have way more subscribers.

[jamessketcher]

I'd like to see an update on this 😊

[vatsalgandhi]

Could you create an analysis video for MOD stock?

[ansonx]

Can you let us know which companies you own? So far I know it’s AMZN and TSLA?

Also can you do Air Canada stock?

[crusaderkumar]

Thanks for your guidance.
One subscriber from India ❤

[josephborg]

Keep these up - please discuss fair value more often.

[Tex_Track]

Well I’m hoping it doesn’t go up too fast so I can buy more and start attending the conferences

[JayJay-dozw]

Should we buy stock in bitcoin mining companies like CleanSpark?

[Pongant]

Regarding Snowflake, I am still unsure regarding the investment thesis. It runs on AWS and GPC, and is pretty expensive for the customer.

Mid-size to Larger companies build their own warehousing/database infrastructure using said cloud hosters. Small companies might end up utilising Snowflake as a means to get up and running quickly, but I can imagine that they transition to a tailored solution quickly.

I could be wrong of course.

[AceOnBase]

Wow this was surprisingly intelligent lol

[SmoochiepooBaconterror]

What. You did own Snowflake? And now your not ?

[KS-npus]

Do you think is a good price to buy now?