Cloud-Based Data Warehousing Specialist snowflake stock (NYSE:SNOW) stock is down about 15% over the past month, currently trading at about $300 per share. The decline comes on the back of a broad sell-off in software names and high-multiple stocks, the Federal Reserve’s outlook for several interest rate hikes through 2022, and also some insider selling. So is Snowflake stock a buy at current levels? We think it is.
Snowflake’s recent execution has also been solid. Snowflake has been nearly doubling its product revenue year-on-year in recent quarters and expects year-on-year product revenue growth in the range of 94% to 96% for Q4 FY’22. In the most recent quarter, Snowflake’s operating margin also turned positive, coming in at 3%, well ahead of its guidance of -7%. Snowflake’s overall customer base grew 52% year over year to 5,416 in Q3 and its customers appear to be spending even more, with the customer base generating more than $1 million in 12-month product revenue from a year earlier. increasing by 128%. Despite this strong progress, Snowflake stock has remained nearly flat over the past 12 months and remains down nearly 23% from all-time highs, offering a good entry point for investors. We consider Snowflake stock to be $370, or approximately 53x projected FY’23 revenue and approximately 20% ahead of current market value. View our analysis Snowflake Valuation: Is Snow Stock Expensive or Cheap? for more information. View our analysis snow revenue For more information on Snowflake’s business model and how its revenue is expected to trend, click here.
The longer-term outlook for Snowflake is also looking good. The transition of businesses from on-premises models to more cost-effective and scalable cloud-based data warehousing is only likely to progress further. Snowflake is particularly well positioned in this market, as its product works on cloud platforms such as Amazon’s AWS, Google Cloud and Azure, and also offers greater flexibility, as it converts storage to computing for the purposes of billing. separates. The addressable market is also sizable, at more than $80 billion per snowflake, giving the company plenty of room to expand.
Below you’ll find our previous coverage of Snowflake stock where you can track our outlook over time.
[12/10/2021] Should You Buy, Sell or Hold Snowflake Stock at $360?
Cloud-Based Data Warehousing Specialist snowflake stock It’s done pretty well this year, up nearly 30% since the beginning of January, currently trading around $360 per share. Although the stock has declined slightly from the all-time high of nearly $392 seen in mid-November, partly due to the Federal Reserve’s bullish stance and concerns of a new coronavirus strain, Snowflake is still heavily in its favor. Has been doing. In the third quarter of FY’22, the company grew nearly 110% year-on-year, beating estimates, while providing stronger than expected guidance for the full year. The long-term growth outlook also looks strong. Cloud-based data warehousing is clearly the future, as organizations transition from storing data on on-premises servers and expensive hardware to cloud-based offerings that are more cost-effective and scalable. Snowflake is particularly well placed in the space, as its product operates on a cloud platform and also offers greater flexibility, as it separates storage from computing for billing purposes. The addressable market is also large, at over $80 billion per snowflake.
We consider Snowflake stock to be approximately $370, or approximately 53x projected FY’23 revenue and slightly ahead of current market value. Now that we were very bullish on Snowflake stock, when its stock fell to the $190 level earlier in the summer, and also when the stock was trading around $300 (see update below), we’re looking at current levels. Will be a little more careful. Snowflake’s current valuation multiples leave little room for error, and the company’s stock could meaningfully correct itself if growth slows ahead for whatever reason. The prospect of raising interest rates sooner than expected could hurt many names—even harder than a value pick, and that’s another significant risk for the stock. View our analysis Snowflake Valuation: Is Snow Stock Expensive or Cheap? for more information.
[11/26/2021] After up 18% over the past month, what’s next for Snowflake stock?
snowflake stock It has lost nearly 11% over the past week (five trading days), less than the broader S&P 500, which remained nearly flat over the same period. The decline is likely driven by investors reducing exposure to high-growth, high multiple software stocks such as Snowflake, amid rising inflation concerns and indicators that the Federal Reserve was ready to raise interest rates too soon, and its asset purchases. Became more aggressive about reducing. , However, the stock is still up about 4% compared to the previous month (about 21 trading days) as investors were largely positive about the product updates the company showcased at the SnowDay event held in mid-November.
So is SNOW stock likely to decline in the coming weeks and months, or is it looking bullish? According to the Trefis Machine Learning Engine, which analyzes historical stock price movements, SNOW stock has a 60% chance of a rise in the next month (21 trading days). View our analysis Snowflake stock likely to rise for more information.
Day Five: SNOW -11%, versus the S&P 500 0.3%; underperforming market
(5% chance of occurrence)
- snowflake stock 11% drop In the five-day trading period ended 11/24/2021, compared to the broader market (S&P500), which remained almost flat during the same period.
- A change of -11% or more in five trading days has a 5% event probability, which has happened 16 out of 296 times in the past year.
Day 10: SNOW -1.6%, versus the S&P 500 1.3%; underperforming market
(32% chance of occurrence)
- snowflake stock 1.6% drop Compared to the broader market (S&P500), it gained 1.3% over the past ten trading days (two weeks).
- A change of -1.6% or more in ten business days has a 32% chance of occurrence, which has happened 93 times out of 291 in the past year.
Twenty One Days: SNOW 3.8%, vs. S&P 500 3%; best performing market
(43% chance of occurrence)
- snowflake stock rose 3.8% Over the past twenty one trading days (about a month), up 3% compared to the broader market (S&P500)
- A change of 3.8% or more in twenty-one trading days has a 43% chance of occurrence, which has happened 121 times out of 280 in the past year.
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[10/13/2021] It’s still not too late to buy Snowflake stock, up 65% from this year’s low
snowflake stock (NYSE:SNOW) is up nearly 65% from early May 2021 lows. The stock, even now, is trading up about 13% year-over-year, at about $312 per share. The rally comes on the company’s move to raise full-year guidance due to stronger than expected earnings in both Q1 and Q2 FY’22 and strong growth for cloud data warehousing services and upgrades by several brokerage firms. However, we still think the stock has more room to move. We value Snowflake stock at approximately $340 per share, which is approximately 10% higher than its current market price. View our analysis Snowflake Valuation: Is Snow Stock Expensive or Cheap? for more information. Although our forecast assumes Snowflake to be at a relatively high 86x projected FY’22 revenue, there are some trends driving our bullish forecast for the Company.
Snowflake is growing rapidly, according to our estimates, with revenues expected to grow by approximately 94% this fiscal year and approximately 65% in FY23. Long term growth should also stop for some reason. The addressable market for the Snowflake product appears to be sizable (about $90 billion, Snowflake estimates) as organizations look to their legacy to convert on-premises databases to the cloud. With sales expected to be a little over $1.1 billion this year, there’s plenty of room for expansion. Now even though Amazon, Google, and Microsoft’s computing offer their own data warehousing solutions atop their respective public clouds, Snowflake’s cloud-agnostic product is markedly more flexible than rival offerings, making it a top pick for customers. Makes choices. In addition to higher customer adoption, Snowflake should see higher usage per customer as businesses become more dependent on big data. It could also help increase Snowflake’s revenue as it bills customers based on a consumption model.
Check out our analysis snow revenue For more information on the company’s business model and how it makes money.
[9/30/2021] Down 7% Over the Last Week, Is It Time to Buy Snowflake Stock?
snowflake stock (NYSE:SNOW) declined nearly 7% over the past week (five trading days) compared to the S&P 500, which fell nearly 1% over the same period. While there hasn’t been any notable company-specific news from Snowflake over the past week, rising bond yields and weak U.S. consumer confidence data have set off broad sell-offs in the software and technology sector, and Snowflake, being a high-majority, has seen high growth. The name is affected. Furthermore, with Snowflake’s stock up nearly 60% since mid-May, there is likely to be some profit booking.
Now, is Snowflake stock poised to rise? Based on our machine learning analysis of trends in stock price over the past year, SNOW stock has a 62% chance of growth in the next month (twenty one trading days). View our analysis Snow likely to increase for more information.
Day Five: SNOW -6.8%, versus S&P 500 -1%;…