SNOW - Snowflake Q4: A Buy Amidst Conservative Guidance And Expansion Opportunities

2024-03-12 17:05:40 ET

Summary

• Snowflake reported strong financials with YoY product revenue growth of 38% and non-GAAP product margins expanding to 77.8%.
• Despite conservative guidance for FY25, bookings performance was stellar. Conservative guidance could lead the path to beat-and-raise quarters in the second half of the fiscal year.
• The arrival of a new CEO may have spooked investors, but a tech-focused leader with experience in AI could benefit Snowflake in the long run.

I have been closely following Snowflake ( SNOW ) for the past year or so when I started building my position in the stock. At these levels (~$160/share), I think Snowflake represents a solid buy amid conservative guidance and margin expansion opportunities....

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