NVDA - Snowflake: Growth Is Hardly Cheap Especially With AI Stocks (Rating Upgrade)
2024-05-14 08:30:00 ET
Summary
- Snowflake investors endured a steep bear market decline from the stock's February highs.
- Snowflake's fiscal first quarter earnings release is viewed with caution, given the withdrawal of its long-term outlook.
- Given its potentially more robust AI capabilities, Databricks is confident it will gain market share against Snowflake.
- Snowflake investors need management to proffer more confidence in its enterprise AI roadmap.
- The stock has consolidated constructively since March, priming SNOW well for a further post-earnings recovery.
Snowflake Stock Fell Into A Bear Market
Snowflake Inc. ( SNOW ) investors who bought into its optimism since the stock topped out in mid-February 2024 have faced significant downward volatility. Accordingly, SNOW peaked close to the $240 level and dropped nearly 40% through its late April lows. I reiterated my caution on SNOW stock in early March, as I assessed the hammering was deserved. Given the withdrawal of Snowflake's long-term product revenue guidance, the market turned more skeptical in justifying SNOW's highly expensive valuation....
Snowflake: Growth Is Hardly Cheap, Especially With AI Stocks (Rating Upgrade)