A Snowflake Stock Analysis

Our Snowflake stock analysis shows that snowflake stock $SNOW is a richly valued #BigData play that's finally floated back down to earth. We look at why the platform is selling like hotcakes, mainly because it's a much better alternative to legacy #DataWarehouse solutions like IBM, SAP, and Oracle, all of which compete with Snowflake. Beyond data warehousing, Snowflake's "Data Cloud" ecosystem enables companies to share and sell data amongst themselves. We'd be buyers of SNOW stock at around $106 a share, or a simple valuation ratio of 20. We certainly don’t consider Snowflake’s growth prospects to be average, so we need to pay some premium. Just a few weeks ago, shares dipped to nearly $110 which represented a simple valuation ratio of just over 20. So that’s our line in the sand. If Snowflake shares trade at a simple valuation ratio of 20 or less, we’ll consider that a reasonable valuation and possibly go long the stock as a play on big data. That’s provided we have an open slot in our portfolio, our thesis hasn’t changed, and we haven’t found something more interesting – like that Databricks IPO that’s rumored to be happening this year.

RESEARCH PIECES USED IN THIS VIDEO:
1.What’s a Fair Valuation for Snowflake Stock?
2.Why Warren Buffett is Buying Snowflake Stock
3. What Does Databricks Do and Why Should Investors Care?

CHAPTERS:
00:00 Intro
00:58 Buffett's Snowflake position
02:23 The Snowflake data platform
03:25 The benefits of Snowflake
05:00 Snowflake's competition
06:20 Snowflake's relative valuation
07:45 SNOW's net retention rate
10:27 The Snowflake Data Cloud
11:34 Snowflake's 2029 targets
12:27 Snowflake sales and marketing spend
13:33 Snowflake's TAM
14:01 Snowflake's survivability
15:05 Our $106 a share price target
18:03 Databricks vs Snowflake
18:52 Conclusion

ABOUT US:
This video is brought to you by Nanalyze, a boutique media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #investments in a language that is future-proof and easy to understand.

[derrickkwilliams]

Good stuff guys. You have some of the best content on YouTube. I own $SNOW, I am a believer. My cost basis is $160. Not worried. I will buy more if it goes back under $110. Hold Time- minimum 5 years. Trying to average down as much as possible so as I can to that $106.

[Enim]

Very informative video. I am a new subscriber and so far, I like your way of explaining and dissecting companies to invest into. Thank you

[thecamwright]

Are you familiar with KX (kdb+)? Similar to Snowflake but with streaming analytics/faster query speed.