Snowflake ( NYSE:SNOW )
Snowflake stock plunged nearly 4% on Tuesday after the investment firm Bernstein began covering the data warehousing company. Bernstein noted that although Snowflake ( NYSE:SNOW ) has seen strong growth, taking away business from the entrenched cloud competitors may be challenging. This caused Snowflake stock investors to be concerned about the company’s future.
Analyst Dr. Mark Moerdler began coverage on Snowflake ( NYSE:SNOW ) with a market performance rating and a price target of $166 on Snowflake stock. He pointed out that the firm, managed by Frank Slootman, has been “one of the darlings” of the cloud industry due to its robust growth and excellent execution of business strategies. However, financial projections, such as the 30% year-over-year growth in fiscal 2029, have already been “baked into the stock’s valuation.” Furthermore, the company is up against stiff competition from the likes of Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, and Google (GOOG) (GOOGL) Cloud Platform, so it may be difficult for the company to beat projections.
According to the letter Moerdler sent to clients, “to materially achieve those projections would require winning significant revenue and share in new areas battling against strong frequently established Cloud rivals, which we think is going to be tough.”
The analyst continued by saying that Snowflake ( NYSE:SNOW ) technology has a variety of use cases and offers an intriguing ...
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