Tom Nash

Snowflake Stock Analysis - VIP Patreon Members Exclusive

Added 2023-06-01 06:49:53 +0000 UTC

$SNOW stock is currently at $165 after hitting $400 in November 2021, is this a good time to add this stock to your portfolio?

*the screenshot is taken from Stock-mvp.com (use code LAST50 to get a 50% coupon code)

Snowflake is a cloud based data storage and management platform. Commonly confused with a SaaS business (software as a service) this is a pay per use data storage and management product. Clients buy credits and use these credits on the platform. The more you use the more you pay. It’s a B2B model and it’s based on a vast volume of low ticket items at scale. Currently about 8,000 business use this platform and their net dollar retention is 150% which is very impressive.

The stock is up 7% over the past 6 months so it isn’t part of the AI hype, although there is a case to be made that it should be included due to their recent purchase of Neeva, a search startup from two former Google employees, which works on natural language voice activated AI based search engine which anowflake will integrate into their data management platform.

The good:

Short activity is under 3% - 👍

Institutions hold 67% - 👍

Revenue Growth 70% - 👍

Assets to liabilities is 3.5 to 1 - 👍

Cash to debt is 4 to 1 - 👍

Clearly the company is well managed as you can see by the above numbers. Very impressed with this.

The Bad:

Negative net income of -800 million 👎

Price to sales of 24 is very high 👎

Price to book is 10 👎

Overall:

Snowflake stock is a buy for me since it’s a great business with an excellent management and exposure to AI at a reasonable price at $165 as of May 30, 2023.