Sumary of With Addressable Market Expanding, Is Snowflake Stock A Buy?:
- UKRAINE – 2021/03/12: In this photo illustration the Snowflake Inc. logo of a US cloud-based .
- [+] data-warehousing company is seen on a smartphone and a pc screen.
- (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Snowflake stock (NYSE: SNOW) has rallied by almost 36% from its lows of about $190 per share seen in mid-May.
- The rally comes on the back of a more positive outlook from brokerage analysts and the robust Q1 FY’22 earnings, which saw the company report a 110% year-over-year growth in product revenues.
- We value Snowflake stock at about $230 per share, slightly below the market price, due to near-term risks such as rising inflation and the Federal Reserve’s increasingly hawkish stance.
- Cloud-based data warehousing is clearly the future, as businesses continue to migrate from on-premise systems to the cloud, which is more cost-effective and scalable.
- Snowflake, which is seen as a technology leader in the space, is getting more bullish about its long-term prospects.
- During its first analyst meeting as a public company, held in June, Snowflake upped the size of its estimated addressable market from $80 billion to $90 billion.