2024-06-11 02:52:15 ET
Summary
- Snowflake's stock has fallen 34% year-to-date following the retirement of its ex-CEO and a slowdown in revenue growth.
- The company's new product roadmap and strategy, outlined in its Analyst Day presentation, indicate potential for increased data access per product module, leading to higher revenue generation.
- Despite commentary from Salesforce and MongoDB, Gartner still points to sustained spending in cloud software, indicating seasonality, which may have been priced in regarding Snowflake.
- Current pessimism discounts the opportunity for increased revenue gains sourced from the company's revenue-per-query business model, creating upside in the stock.
Investment Thesis
Snowflake ( SNOW ) finds itself in an unfamiliar place nowadays.
The maker of cloud data services and products has seen the pace of growth in its widely appreciated namesake cloud data product platform slow down drastically from its days of delivering almost 2x revenue with every quarter that used to go by. Then, in a shock announcement, its ex-CEO, Frank Slootman, announced his sudden retirement, zapping investors. Markets have not taken the recent developments kindly, with the stock down 34% ytd.
Markets have dumped Snowflake in H1 2024 (sa)
The company announced Sridhar Ramaswamy, the founder of Neeva, an LLM-based search technology product startup acquired by Snowflake around a year ago, would now lead the company in the next phase. But investors appear to shrug off the CEO transition as the stock falls, as indicated in the chart above....
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For further details see:
Snowflake 2024 Analyst Day Takeaways - It's All About The Revenue Per Query