SNOW - Snowflake: Still Too Early To Buy The Dip
2024-06-17 10:56:22 ET
Summary
- Snowflake Inc. shares have dropped over 45% since February 2024 due to concerns about top-line growth deceleration.
- A new CEO has recently taken over the firm, with the company forecasting only a 24% year-over-year product revenue rise for FY25.
- Snowflake's stock trades at 8 times FY27E sales and 80 times FY27E EPS, but recent insider buying prompted further analysis for this one-time market darling.
- A full investment analysis follows in the paragraphs below.
Shares of data management concern Snowflake Inc. ( SNOW ) are off over 45% since February 2024 as investors grow increasingly concerned about its top-line growth deceleration. Competition from privately held Databricks and the big three has management forecasting only a 24% year-over-year product revenue rise for FY25 after posting 34% growth in FY24. Trading at 8 times FY27E sales and 80 times FY27E EPS with a new CEO and an exorbitant share-based compensation program, SNOW's recent insider buying still merited a deeper dive. An analysis follows below....
Snowflake: Still Too Early To Buy The Dip