SNOW - Snowflake Just Impressed Investors: 2 Reasons to Buy the Stock and 1 Reason to Avoid It
2023-12-03 08:30:00 ET
Snowflake (NYSE: SNOW) is a leading cloud computing company with a growing portfolio of products to serve businesses in the digital world. It hasn't been an easy ride since its stock came public in 2020 -- although it's trading comfortably above its IPO price of $120, it's still 52% below its best-ever level.
Snowflake has attracted some top-tier investors, including Warren Buffett's Berkshire Hathaway conglomerate, which currently owns a stake worth $1.1 billion.
But should you follow Berkshire's lead? Snowflake just reported its financial results for the fiscal 2024 third quarter (ended Oct. 31), and investors immediately sent its stock 7% higher. But there's a large hurdle that would probably deter most investors -- including Buffett himself -- from buying the stock at the current price.
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Snowflake Just Impressed Investors: 2 Reasons to Buy the Stock, and 1 Reason to Avoid It