- Snowflake reported its first quarter since IPO, backed by Berkshire Hathaway and Salesforce.
- Snowflake does not have a SaaS business model, and instead charges based on consumption. This has led to industry-leading net dollar retention.
- Snowflake is no doubt a winning company in the nascent era of what it calls the ‘Data Cloud’, but the stock comes at a hefty price.
- Still, shorting just because it is expensive is not a winning strategy either. Snowflake is in the midst of long-term secular tailwinds.
For further details see:
Snowflake: Don't Short It Just Because It's Expensive