SNOW - Snowflake: Time To Take Gains (Rating Downgrade)
2024-02-14 01:12:54 ET
Summary
- Snowflake's stock has surged over 25% year to date despite no new fundamental news.
- SNOW stock now sits at a worrying valuation of ~20x FY25 revenue.
- Though new generative AI applications drive new use cases, Snowflake's growth is slowing as customers' consumption trends also cool down.
- It's best to lock in gains here and wait for Snowflake stock to retreat before buying back in.
Few investors, myself included, believed the stock market could rally so sharply and so quickly in 2024 to an S&P 500 above 5,000. And after a furious few months, especially for growth and tech stocks, it's a good time for us to reassess our portfolios and consider what needs to be trimmed down....
Snowflake: Time To Take Gains (Rating Downgrade)