2024-03-28 09:00:00 ET
Summary
- SNOW has dramatically lost -32.2% or the equivalent -$24.42B of its Enterprise Value, despite the double-beat FQ4'24 earnings call.
- This is unsurprising, given the introduction of tiered storage pricing in FQ4'24 and the increased adoption of the open-source Iceberg Table formats triggering the underwhelming FY2025 guidance.
- The silver lining to SNOW's investment thesis is its inherent lack of debts and the highly liquid balance sheet, implying its ability to weather the growth deceleration ahead.
- However, with the management guiding "increased commission expense" from the consumption-based pricing model, we may see its SBC further grow from here.
- As a result of the near-term uncertainty during the transitionary period, we believe that SNOW remains expensive here.
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For further details see:
Snowflake's Meltdown Is Not Drastic Enough - Still Expensive Here