SNOW - Snowflake: The Many Red Flags Give Ample Reasons To Avoid This Stock
2024-03-19 17:45:53 ET
Summary
- Snowflake's stock price may have further to fall due to red flags and declining revenue retention rate.
- Snowflake's technology allows for scalable data storage and collaboration within organizations.
- Competitor Databricks is rapidly growing and has acquired technology that could give them an advantage over Snowflake.
Preamble
I guess many investors have plunged into an investment in Snowflake because of famed value investor Warren Buffet’s rather large stake in the enterprise. Warren Buffett purchased 6.13 Million shares in Q3 2020 for $120 a share. Then, the shares zoomed up to around $400, giving a rather nice gain. But now, Berkshire’s unrealised profits are melting away like tears in rain; to quote Roy Batty....
Snowflake: The Many Red Flags Give Ample Reasons To Avoid This Stock