Snowflake (SNOW stock): HUGE NEW BUY?

With SNOW stock down 30% this past month its very interesting to see the new CEO, Sridhar Ramaswamy, buy over $5 million dollars wroth of the stock. Should you join him? In this video I discuss Snowflake, what they do, thoughts on the business and valuation.

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[Thomaspaul]

the yield on bonds have decreased especially on the long end (30 and 10 Y) indicating that the demand is still there even if the supply remains huge showing a preference for safety. I'm still at a crossroad regarding whether or not to liquidate my $138k

[mukunthans]

In our organization, we use Snowflake. From my perspective, Snowflake reduces the learning curve for developers and architects, making it attractive for organizations to deploy their data on this platform. Not only does Snowflake democratize data, but it also democratizes AI. Snowflake consistently updates with technological advancements such as LLM, ChatGPT, and chatbots. Additionally, they make strategic acquisitions in the market. Recently, Snowflake introduced the Cortex service. With Cortex, we can utilize LLM functions, ML functions, and build chatbots using our data, including document search capabilities.

[gherbox]

I think snowflake is a great product overall. I love that it can connect with any cloud providers.
However the competition is fierce and I'm not 100% sure they have an edge.

[capitaldea]

I work as a consultant for Data Analysis and BI Solutions. A persistent trend is to have a multi cloud strategy for different and specific workloads. Snowflakes offering fits perfectly into that landscape. I can see how Snowflake allows companies to develop their own AI applications for internal use (improved productivity) or for customers (CRM or Services).

[vic-g]

Great analysis! Yet, I stick to Buffett’s rule: ”Don’t invest in what you don’t understand”. Snowflake, despite its potential, remains a puzzle to me.

[AllGrindNoGimmics]

"Hey, maybe its time to buy this company. No, actually it's not." David, every time 😢

[mikecole]

Insiders sold almost 1.7m during this same period.

[jimmyhuang]

The reason Warren is investing in snowflake is switching cost and data connection. Customers are hard to move out when they put their company's datas in snowflake due to switching cost. Further, snowflake will win the data connection and sharing when the size of customers get bigger just like Facebook. I don't think current AI deployment behind databrick is a problem, this disadvantage is able to be caught up.

[jordanthomas]

Daniel can you do a video on how it was like to work on Wall Street and why you left

[kaaanjiiin]

He's required to buy $5M of stock to get his $5M RSU grant. Not quite the signal you are imagining.

[CardTickMaster]

Great video, I appreciated the multiple perspectives

[foxbat]

Some businesses have the best business models and the most capable management Snowflake looks like one of these

[vaghanideep]

Hey danial, Sridhar Ramaswamy become CEO in February this year and just after a month, on march 27th he bought 5million$ worth of shares, this seems like insider buying stock market publicity stunt.

[joseplacencia]

Daniel, I believe your base-case P/E multiples need to be higher. Tech companies with high margins growing at 20%+/yr deserve at least a 40+ PE, in Snowflake's case a fair base case PE might even be closer to 50. My base case PE mutliples are usually about 2x yearly revenue growth when valuing companies. Revenue growth is a key factor when applying PE multiples.

[SeshDelight]

Thanks for the video. Very helpful. It would be great to get your take on Shift4.

[uropy]

200% on what time scale? If you are talking about 10 years then you are not much better than investing in sp500 mutual fund, with substantially higher risk

[herokorai]

I like both the investor and trader perspective. I agree with your risk reward assessment.

[anderss]

What about all the insider and institutional selling?

[nickjerrat]

What I don't like about snowflake, apart from the insane valuation, is that they don't have their own cloud infrastructure, it all sits on AWS, . azure, just feels like a risk to me and surely must limit their gross profit potential. Happy to hear other view points.

[panthini]

You always talk about the companies that you are not sure of - once in a while it will be nice to hear the other way