SNOW - Here's What Could Reinvigorate Snowflake Stock
2023-11-24 06:21:00 ET
Though shares of data cloud specialist Snowflake (NYSE: SNOW) have fared well this year, rising more than 15% of this writing, many investors holding shares for longer time horizons are still beaten down. For instance, the growth stock is down more than 50% since the beginning of 2022.
This begs the question: What will it take for this stock to really take off again? While no one can know for sure what will send shares higher, here's one thing that could help: Snowflake's rapidly decelerating top-line growth rates need to stabilize or even start accelerating again.
Sure, investors can forgive Snowflake for reporting decelerating growth since its initial public offering in late 2020. The triple-digit growth rates the company was posting in 2020 and 2021 were obviously unsustainable. But with year-over-year revenue growth rates now in the 30s (and still decelerating), some investors may be starting to look at the stock more skeptically -- particularly in light of its premium valuation.
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Here's What Could Reinvigorate Snowflake Stock