2024-06-13 10:22:15 ET
Summary
- Snowflake Inc. is trading at -44.8% off year-to-date highs.
- Our assessment of Snowflake's prospects suggests that the company should further extend its market leadership over competitors due to its superior product ecosystem.
- Despite Snowflake's aggressive spending in recent quarters, its fundamentals remain healthy, and we estimate Snowflake will turn a profit within the next three years.
- For short-term traders, we also think that the stock is in oversold territory and could be due for an imminent rebound.
- Accordingly, we initiate our coverage of Snowflake with a "Buy" rating.
Snowflake Inc. ( SNOW ) stock has been under severe selling pressure since the company reported mixed FYQ1 results on 22 May. Some Wall Street analysts have also expressed doubts over Snowflake's AI roadmap under the leadership of its new CEO, Sridhar Ramaswamy. Given that almost every technology company is investing heavily in AI, it is no wonder that Snowflake's delayed push into developing its own AI initiatives has hurt its stock price performance this year....
Read the full article on Seeking Alpha
For further details see:
Snowflake: An Oversold And Underappreciated Growth Pick