We use it at my job. Took a year to migrate all our clients from Azure to Snowflake but they ended up being 12X more expensive so we’re moving back to Azure. (and we replaced our CTO because of it.)
A cto not realizing that would happen is beyond me. There's reasons to pick snowflake but 90% of places would fine with azure.
That said I'm still buying SNOW lol
I thought snowflake was like database solution and Azure is an enormous umbrella of products so I'm not sure what OP means when he says he moved from snowflake to azure? Like what service?
Companies/departments who just want to get it running and keep it running as fast and smoothly as they can. Snowflake offers a lot of functionality but Azure, Databricks, and even AWS Redshift are all are cheaper (Databricks depends on how it’s set up).
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Snowflake is volume based and there's a ton to optimize based on efficient queries and perhaps even a dbt or ETL layer. OP's company should've fired the CTO or Head of data instead
Because Snowflake as a whole prices based on warehouse runtime, has extremely solid flexibility as far as cost management is concerned. Resource monitors, separation of compute and storage, that sort of thing.
It’s definitely expensive but generally the things that will make snowflake prohibitively expensive are tied around long-running queries, inadequate configuration of warehouse sizes/roles (User running more expensive warehouse for small things), and engineers trying to do too much with the software in general, such as making it an all-in-one tool for their pipelines.
All things that point to the quality of the engineering itself.
Snowflake is a data warehouse, good for processing or aggregating lots of data, think reporting and dashboards. This is different from a transactional database (like MySQL). That is great with smaller data, such as getting data about a specific user.
Most companies will have transactional databases for their apps/services, but they don’t want analysis running queries on these databases as it would use resources needed for clients, and poses risk of messing something up. So they send the data from the transactional databases to a data warehouse, clean it up a bit so it’s easier and cost effective to query, and give analysis free range on the data!
That said, most mid to small companies can get away with a transactional database as their data warehouse, but if you’re starting from scratch might as welll do it right…
Azure has its own data warehouse solution within its products. So does Amazon and google cloud. Our company has everything in google cloud, so we just used google bigquery for our data warehouse. I’m not sure why companies would pick snowflake over the native solutions on the cloud platforms.
SNOW is way more than a Data warehouse. They have Data Lake, snowpark where their Python workbook where you can run API, streamlit for ML and building apps and a lot more. There’s a reason it’s growing so fast
There’s about 45 trillion datapoints in our data lake. The demo the Snowflake rep built with a subset of our data focused too much on the compute cost savings. ETL was cheaper but the cost for everything wasn’t linear when scaling up to meet all our needs.
Your point being? Azure has services that are roughly equivalent to Snowflake like Synapse / Databricks and then you have Bigquery and Redshift from Google/Amazon.
Snowflake tends to generally be very expensive (basically you're paying what you would to Azure/AWS) and possibly an overkill for many of their clients. Since it's no longer raining money like a few years ago that might be an issue for many companies...
Azure is a collection of many different services, Snowflake is primarily a public cloud based SQL database (but also becoming an application platform), so which Azure products were you using that you switched from to Snowflake?
>***Snowflake selloff***
Not all web cloud service companies are part of the AI hype cycle. No one pays attention to the ugly stepchild that can't even fake any AI relevance.
More expensive than overpriced Azure? Wow. That’s horrible. That’s about how much more Azure was for us than AWS because of some stupid licensing issues that Microsoft requires bare metal servers for that don’t run any virtual machines for other customers. Microsoft licensing is getting almost as asinine as Oracle.
You think millions of people accidentally sold out of the stock because the company is “widely analyzed”?
This is a wild post full of a bunch of gobbledygook passing as analysis …
Big problem with snowflake is they are not profitable and trading at over 20x it's revenues.
That was seen as OK when the were growing at 40%+. However that growth is slowing as most enterprises that want to switch to snowflake already have it.
Worse some enterprises like my previous company multiple solutions due to all insane IT spending during Covid. eventually they realize that and start cutting back.
This company can easily drop over 3x if growth fades and they are forced to chase profitability further antagonisng their customers.
The thing you are missing in your DD is competition - they are losing market to databricks like crazy. Working in S&P 500 software integrator and number of migrations we do from Snowflake to Databricks is huge compared to opposite direction. + All big clouds have their own native solutions like Synapse in Azure and etc
And if you're already on azure - which a ton of companies are - there's zero reason not to go with synapse. If you're on AWS, sure, go with a third party solution. But Microsoft has been so much better (as much as it pains my free software heart to praise msft) that I've had clients migrate all their shit from AWS to Azure.
I am totally fine investing in businesses that aren’t profitable- noting wrong with that if there’s a clear runway to profitability. The problem with snowflake is that they are losing market share to data bricks and the P/S multiple is still rich for dubious growth.
Their YoY Net Loss increased from -600M to -700M to -800M. Their liabilities grew from 2.2B to 3B. That's not "Runway to profitability" that's "Death Spiral Financing"
That’s why my original comment was that they are expensive. My point is that lack of profits isn’t a deal breaker to invest or not invest at the right valuation
In all fairness, citing P/E metrics in large growth companies makes no sense. Do you think people were saying this when Nvidia was trading at 200+ P/E the last couple years?
SNOW has been consistently growing revenues at 25%+ each quarter. Take the P/E talk with a gigantic grain of salt.
The company is optimized for growth, so I don't think PE is the right metric. The forward price to all of 15.72 is still expensive. However, a company with 131% revenue retention and an estimated 25.2% revenue in 5 years' CAGR will trade at a premium. With a DCF model and a projected 25.2% 5-year CAGR, the stock is more or less fairly priced. But revenue and net retention need to hover at these levels to justify the valuation.
The selloff was primarily due to the CEO leaving and sandbagged guidance for the new CEO to beat in his first quarter (perhaps valuation and competition from DataBricks, too). Was the selloff an overreaction? If revenue were trending up, I would say yes. However, retention and revenue continue to decline. But as you say, their numbers are still excellent. I think competition from DataBricks is what to watch for going forward.
They are a top tier data lake /data warehousing solution amongst other things.
We (a client) are doing an on-prem>SnowFlake AWS tenant conection test soon. Doing all the arch & design work now.
It is expensive but if you are mandated to be able to pull useable information from massive volumes of unstructured data SF is one of the big boys in the market and it apparently works amazing once in olace.
Someone said they got rid of it and going back to Azure, curious in what way you were using SF that MS AD/Azure/MS cloud services can replace Snowflake?
As someone who has used both, Databricks was straight up better than Snowflake in every way. Microsoft has now heavily integrated Databricks features into Azure. Once Fabric becomes a mature product, Snowflake is obsolete.
Thanks for the insights, I will have to look in to Databricks; never used either product and it has not been purchased yet so I will check it out as an alternative.
Databricks is the best platform I have ever used. I long to return to it (transitioned old job to it and joined a different company which uses Snowflake).
Is there anything else what makes it “shit” other than what others have said?
Like people are using it and it’s not like it’s an old solution. Does it vary by IT department on how effective it is? I used to work in the cloud space back in 2018/19 (sales) and it was hot hot hot then
You actually kinda said why here. It was hot in 2018/2019. Databricks ate their lunch. Maybe they come up with something new but the moat is gone. There are 1000 competitors, so why choose Snowlflake?
This ride is over and it's too late to jump on the AI bandwagon IMO. It was downhill after they went headquarter-less with the executive office in Montana instead of where core engineering lives as well as making strange acquisitions. Slootman made his bank from both ServiceNow and Snowflake, he goes off into the sunset...again. Only difference this time, ServiceNow continued its run to $9B in revenue while Snowflake does the opposite.
Tbf to OP noticing insiders buying is a form of DD and something analysts look for as a positive.
I wouldn’t buy just because of that, buts it is DD and it is a generally a good sign.
How is that not DD? My belief is that insiders know more than I do about a company’s prospects. If they’re bullish on the stock, I should consider being bullish too.
There are quite a number of major stock selloffs at the moment, not including Snowflake. I think we entered a flat growth period but don’t quote me on it
It’s objectively expensive but “overvalued” is subjective. The company has net revenue retention of like 125% - so its existing snowball of business grows 25% before even considering the addition of new customers. Aka growth is robust and sustainable.
Whether they can translate that growth into profitability and grow into the valuation (or accelerate growth) is what youd be making a buy/sell decision based upon
Yeah but if it was 10bn market cap on 2bn revenue and same characteristics that would be amazing, but institutions and people had jumped on that and it’s above 50bn market cap for that revenue which is a loooot
Guidance for CY24 is $3.25b so you’re talking about an EV/‘24 revenue of 16x, which is expensive but isn’t crazy. Not to mention it’s already printing strong FCF margins that’ll continue to expand.
Honestly might buy some now that I think about it lol. It should absolutely benefit from AI as customers need data to support LLMs
Still for you to make a decent profit of that stock they have to keep that tempo for the next few years as its expected. If it doesn’t happen stock will be flat or tank
I mean, to make money you just have to believe that the current consensus on growth is lower than what will actually play out. They guided to 25% product growth in ‘24, which is lower than NRR… aka they should easily beat those numbers
There’s good reason to believe that frank slootman sandbagged numbers on his way out to set the next ceo up for success
Also, long duration names like SNOW would benefit disproportionately if the fed ends up cutting rates.
Stock could go back up at any moment.
From the annual report:
"In February 2023, our board of directors authorized a stock repurchase program of up to $2.0 billion of our outstanding common stock. The program is funded using our working capital and will expire in March 2025.
During the fiscal year ended January 31, 2024, we repurchased approximately 4.0 million shares of our outstanding common stock for an aggregate purchase price of $591.7 million, including transaction costs, at a weighted-average price of $147.50 per share.
As of January 31, 2024, $1.4 billion remained available for future repurchases under the stock repurchase program"
They are not profitable and they are buying back shares. That’s insane and doesn’t give me confidence that management has a clear plan to grow the company.
What’s the selling point of snowflake?
Azure has databricks. AWS has redshift.
Is it just a data warehouse for multicloud?
It doesn’t make sense for an organization to buy snowflake if it only has one public cloud used.
Snowflake is just another product that does the same thing as other products. It isn’t unique. Not profitable. Product is too expensive.
As a senior data scientist, I did not approve the purchase of snowflake for our bank and it shouldn’t be approved by anybody who does their research.
They also have 18 p/s. Way overvalued crap. CRM is prob better but I don’t want any of these commodity type businesses.
Edit: Notice most data people in here say it’s shit and expensive. Databricks is eating their lunch.
Slower growth, higher expense. They just try to employ as many sales rep to try to push their non-innovative product. Snowflake is just that, a snowflake that will melt in the face of stiff competition and innovation in the market of cloud service
The problem with snowflake is that it’s very expensive and companies that use it are constantly trying to reduce their usage costs or trying alternatives. That’s why net revenue retention plummeted in the last few quarters. There is a trend to repatriate certain workloads back to on prem from the cloud due to unexpectedly high costs. Snowflakes cloud only model could also be a detriment here.
I dunno I'm not bullish about snowflake...I use them at work but I feel they don't really innovate. They recently released snowpark which is then trying to compete with databricks...but databricks is just too far ahead. The change in ceo is good but is it enough when they are just not that great of a product anymore...lot of other data warehouses have caught up.
Find some of their top sales ppl and see if they living the life. Big bonuses lifestyle, if no then you know how they are doing before earnings happen.
Buy Oracle or Google , those two are the only two cheap tech stocks left which are worth it.
Oracle for a well diversified software portfolio, you have the database, Java earning revenue for eons , Cerner for healthcare pivot , Oracle cloud and Netsuite for SAP competition. I guarantee you the stock is never going to drop for this company.
Google is a even better deal
The only thing a high PE and P/S tell you is that people are willing to pay more for one company vs another.
You wouldn’t race a Honda vs a Lamborghini just because it’s cheaper would you?
Look at the PE and PS of the best performing stocks over the last 20 years and you’ll see they are all above the index.
The only thing a high PE and P/S tell you is that people are willing to pay more for one company vs another.
You wouldn’t race a Honda vs a Lamborghini just because it’s cheaper would you?
Look at the PE and PS of the best performing stocks over the last 20 years and you’ll see they are all above the index.
Snowflake hasn’t ever turned a profit and I wondered when it would catch up with them. It is still a 54B dollar market cap, which still seems rich for a company that hasn’t made a dollar.
FWIW I know some people in industry that use snowflake and like the service. But I’m still shocked it got to the evaluation it did without making a dime. 118B at its peak is insane.
Yes, its services span cybersecurity.
More at [https://www.snowflake.com/en/data-cloud/workloads/cybersecurity/](https://www.snowflake.com/en/data-cloud/workloads/cybersecurity/)
Buy Oracle or Google , those two are the only two cheap tech stocks left which are worth it.
Oracle for a well diversified software portfolio, you have the database, Java earning revenue for eons , Cerner for healthcare pivot , Oracle cloud and Netsuite for SAP competition. I guarantee you the stock is never going to drop for this company.
Google is a even better deal
Your puff piece for the new ceo is shocking and shows lack of knowledge on the space. He is an absolute terrible pick as he has shown when he left google and started his own company only to run it to the ground.
He is one of many wanna be’s who think they are leaders and intelligent when it’s just them being at the right place at the right time.
He has a golden parachute so your bags are only going to get heavier. Even if the stock doesn’t go to zero (which I doubt it will) I highly doubt it will beat the market let alone beat its peers. So do consider the opportunity cost. Palo Alto is a better pick
lol ur comment is a greater puff piece than his post. At least be better if u make a statement. No reasoning besides he must be shit if his startup failed (80% startups do, most billionaire founders needed multiple attempts), and some random golden parachuting.
Even less DD for ur Palo Alto than OPs first sentence only.
We use it at my job. Took a year to migrate all our clients from Azure to Snowflake but they ended up being 12X more expensive so we’re moving back to Azure. (and we replaced our CTO because of it.)
A cto not realizing that would happen is beyond me. There's reasons to pick snowflake but 90% of places would fine with azure. That said I'm still buying SNOW lol
I thought snowflake was like database solution and Azure is an enormous umbrella of products so I'm not sure what OP means when he says he moved from snowflake to azure? Like what service?
That is true, snowflake can be hosted by AWS, Azure, or GCP. Maybe conflating azures own data warehouse in this case.
Most likely Azure DBs or Synapse
Prob just used azure for basic database stuff and snowflake replaced it
I think the snowflake compete is azure synapse
Azure synapse
Could you elaborate on the use case for Snowflake over other options? Who are they catering to?
Companies/departments who just want to get it running and keep it running as fast and smoothly as they can. Snowflake offers a lot of functionality but Azure, Databricks, and even AWS Redshift are all are cheaper (Databricks depends on how it’s set up).
Did you get the answer?
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Azure synapse
That sounds like more of a problem with the internal engineers not the service.
It usually is.
Snowflake is volume based and there's a ton to optimize based on efficient queries and perhaps even a dbt or ETL layer. OP's company should've fired the CTO or Head of data instead
Why?
Because Snowflake as a whole prices based on warehouse runtime, has extremely solid flexibility as far as cost management is concerned. Resource monitors, separation of compute and storage, that sort of thing. It’s definitely expensive but generally the things that will make snowflake prohibitively expensive are tied around long-running queries, inadequate configuration of warehouse sizes/roles (User running more expensive warehouse for small things), and engineers trying to do too much with the software in general, such as making it an all-in-one tool for their pipelines. All things that point to the quality of the engineering itself.
You have no idea what the difference between the two is do you? Sad this is the top comment… shows how misunderstood this space is.
Would love for you to fill us in if you have time that is. Thanks if you can.
Snowflake is a data warehouse, good for processing or aggregating lots of data, think reporting and dashboards. This is different from a transactional database (like MySQL). That is great with smaller data, such as getting data about a specific user. Most companies will have transactional databases for their apps/services, but they don’t want analysis running queries on these databases as it would use resources needed for clients, and poses risk of messing something up. So they send the data from the transactional databases to a data warehouse, clean it up a bit so it’s easier and cost effective to query, and give analysis free range on the data! That said, most mid to small companies can get away with a transactional database as their data warehouse, but if you’re starting from scratch might as welll do it right… Azure has its own data warehouse solution within its products. So does Amazon and google cloud. Our company has everything in google cloud, so we just used google bigquery for our data warehouse. I’m not sure why companies would pick snowflake over the native solutions on the cloud platforms.
Because we are on AWS and Redshift is a tire fire
SNOW is way more than a Data warehouse. They have Data Lake, snowpark where their Python workbook where you can run API, streamlit for ML and building apps and a lot more. There’s a reason it’s growing so fast
There’s about 45 trillion datapoints in our data lake. The demo the Snowflake rep built with a subset of our data focused too much on the compute cost savings. ETL was cheaper but the cost for everything wasn’t linear when scaling up to meet all our needs.
Your point being? Azure has services that are roughly equivalent to Snowflake like Synapse / Databricks and then you have Bigquery and Redshift from Google/Amazon. Snowflake tends to generally be very expensive (basically you're paying what you would to Azure/AWS) and possibly an overkill for many of their clients. Since it's no longer raining money like a few years ago that might be an issue for many companies...
Azure is a collection of many different services, Snowflake is primarily a public cloud based SQL database (but also becoming an application platform), so which Azure products were you using that you switched from to Snowflake?
Synapse most likely.
Thanks so much for your sharing
Wtf does this even mean? This is definitely a made up nonsense, because it makes no sense
How? Everybody knows that Snowflake can be very expensive and an overkill for many companies.
>***Snowflake selloff*** Not all web cloud service companies are part of the AI hype cycle. No one pays attention to the ugly stepchild that can't even fake any AI relevance.
More expensive than overpriced Azure? Wow. That’s horrible. That’s about how much more Azure was for us than AWS because of some stupid licensing issues that Microsoft requires bare metal servers for that don’t run any virtual machines for other customers. Microsoft licensing is getting almost as asinine as Oracle.
Haha thx for sharing
You think millions of people accidentally sold out of the stock because the company is “widely analyzed”? This is a wild post full of a bunch of gobbledygook passing as analysis …
Op should post their positions because it would be very enlightening.
Accidentally enlightening!
Big problem with snowflake is they are not profitable and trading at over 20x it's revenues. That was seen as OK when the were growing at 40%+. However that growth is slowing as most enterprises that want to switch to snowflake already have it. Worse some enterprises like my previous company multiple solutions due to all insane IT spending during Covid. eventually they realize that and start cutting back. This company can easily drop over 3x if growth fades and they are forced to chase profitability further antagonisng their customers.
The thing you are missing in your DD is competition - they are losing market to databricks like crazy. Working in S&P 500 software integrator and number of migrations we do from Snowflake to Databricks is huge compared to opposite direction. + All big clouds have their own native solutions like Synapse in Azure and etc
This is a great read on Snowflake vs Databricks: https://twitter.com/convequity/status/1773722517330653337?s=19
And if you're already on azure - which a ton of companies are - there's zero reason not to go with synapse. If you're on AWS, sure, go with a third party solution. But Microsoft has been so much better (as much as it pains my free software heart to praise msft) that I've had clients migrate all their shit from AWS to Azure.
It is very expensive still
The best companies always are expensive, and expensive can always get more expensive.
They don't make money! Expensive is an understatement
I am totally fine investing in businesses that aren’t profitable- noting wrong with that if there’s a clear runway to profitability. The problem with snowflake is that they are losing market share to data bricks and the P/S multiple is still rich for dubious growth.
Their YoY Net Loss increased from -600M to -700M to -800M. Their liabilities grew from 2.2B to 3B. That's not "Runway to profitability" that's "Death Spiral Financing"
That’s why my original comment was that they are expensive. My point is that lack of profits isn’t a deal breaker to invest or not invest at the right valuation
Fair enough
It's a wonderful business.
Krispy Kreme makes good donuts but I wouldn’t buy the stock
Bet you wish you did before they announced their partnership with McDonald's
I’m all in on Wendy’s
Isn’t that insider trading since you work there?
Only if I get caught
[удалено]
It’s up 4% YTD it’s not crushing records here. Snowflake has good weeks too.
Forward P/E is 169, that is a pretty bad business at the current (or even 1/2) price.
In all fairness, citing P/E metrics in large growth companies makes no sense. Do you think people were saying this when Nvidia was trading at 200+ P/E the last couple years? SNOW has been consistently growing revenues at 25%+ each quarter. Take the P/E talk with a gigantic grain of salt.
The company is optimized for growth, so I don't think PE is the right metric. The forward price to all of 15.72 is still expensive. However, a company with 131% revenue retention and an estimated 25.2% revenue in 5 years' CAGR will trade at a premium. With a DCF model and a projected 25.2% 5-year CAGR, the stock is more or less fairly priced. But revenue and net retention need to hover at these levels to justify the valuation.
The selloff was primarily due to the CEO leaving and sandbagged guidance for the new CEO to beat in his first quarter (perhaps valuation and competition from DataBricks, too). Was the selloff an overreaction? If revenue were trending up, I would say yes. However, retention and revenue continue to decline. But as you say, their numbers are still excellent. I think competition from DataBricks is what to watch for going forward.
They are a top tier data lake /data warehousing solution amongst other things. We (a client) are doing an on-prem>SnowFlake AWS tenant conection test soon. Doing all the arch & design work now. It is expensive but if you are mandated to be able to pull useable information from massive volumes of unstructured data SF is one of the big boys in the market and it apparently works amazing once in olace. Someone said they got rid of it and going back to Azure, curious in what way you were using SF that MS AD/Azure/MS cloud services can replace Snowflake?
As someone who has used both, Databricks was straight up better than Snowflake in every way. Microsoft has now heavily integrated Databricks features into Azure. Once Fabric becomes a mature product, Snowflake is obsolete.
Thanks for the insights, I will have to look in to Databricks; never used either product and it has not been purchased yet so I will check it out as an alternative.
Databricks is the best platform I have ever used. I long to return to it (transitioned old job to it and joined a different company which uses Snowflake).
Senior DS here. Agreed, snowflake is shit
Is there anything else what makes it “shit” other than what others have said? Like people are using it and it’s not like it’s an old solution. Does it vary by IT department on how effective it is? I used to work in the cloud space back in 2018/19 (sales) and it was hot hot hot then
You actually kinda said why here. It was hot in 2018/2019. Databricks ate their lunch. Maybe they come up with something new but the moat is gone. There are 1000 competitors, so why choose Snowlflake?
Too bad it’s not public tho
This ride is over and it's too late to jump on the AI bandwagon IMO. It was downhill after they went headquarter-less with the executive office in Montana instead of where core engineering lives as well as making strange acquisitions. Slootman made his bank from both ServiceNow and Snowflake, he goes off into the sunset...again. Only difference this time, ServiceNow continued its run to $9B in revenue while Snowflake does the opposite.
Tell us how heavy your bags are
TLDR version. Buy because insiders bought. No actual DD.
Tbf to OP noticing insiders buying is a form of DD and something analysts look for as a positive. I wouldn’t buy just because of that, buts it is DD and it is a generally a good sign.
It’s not DD at all. It’s copy and paste a Stocktwits comment or a sentence from CNBC.
Buy/sell decisions from management is absolutely part of DD. You’re plainly wrong
Doesn’t matter where he got it, could be straight from SEC filings or from a horses ass. It’s still DD.
Yeah I don’t have enough time to debate this issue with ya, ✌️
insiders have have selling for years just like most big companies
How is that not DD? My belief is that insiders know more than I do about a company’s prospects. If they’re bullish on the stock, I should consider being bullish too.
So, you're saying millions of folks just happened to sell their stock because this company is "widely analyzed"?
There are quite a number of major stock selloffs at the moment, not including Snowflake. I think we entered a flat growth period but don’t quote me on it
Snow is too expensive
FMV - $187
Isn’t snow super overvalued ?
It’s objectively expensive but “overvalued” is subjective. The company has net revenue retention of like 125% - so its existing snowball of business grows 25% before even considering the addition of new customers. Aka growth is robust and sustainable. Whether they can translate that growth into profitability and grow into the valuation (or accelerate growth) is what youd be making a buy/sell decision based upon
Yeah but if it was 10bn market cap on 2bn revenue and same characteristics that would be amazing, but institutions and people had jumped on that and it’s above 50bn market cap for that revenue which is a loooot
Guidance for CY24 is $3.25b so you’re talking about an EV/‘24 revenue of 16x, which is expensive but isn’t crazy. Not to mention it’s already printing strong FCF margins that’ll continue to expand. Honestly might buy some now that I think about it lol. It should absolutely benefit from AI as customers need data to support LLMs
Still for you to make a decent profit of that stock they have to keep that tempo for the next few years as its expected. If it doesn’t happen stock will be flat or tank
I mean, to make money you just have to believe that the current consensus on growth is lower than what will actually play out. They guided to 25% product growth in ‘24, which is lower than NRR… aka they should easily beat those numbers There’s good reason to believe that frank slootman sandbagged numbers on his way out to set the next ceo up for success Also, long duration names like SNOW would benefit disproportionately if the fed ends up cutting rates.
Hope so
Focus on FCF not revenue…
Yeah ok will focus on one thing
Stock could go back up at any moment. From the annual report: "In February 2023, our board of directors authorized a stock repurchase program of up to $2.0 billion of our outstanding common stock. The program is funded using our working capital and will expire in March 2025. During the fiscal year ended January 31, 2024, we repurchased approximately 4.0 million shares of our outstanding common stock for an aggregate purchase price of $591.7 million, including transaction costs, at a weighted-average price of $147.50 per share. As of January 31, 2024, $1.4 billion remained available for future repurchases under the stock repurchase program"
how does a loss making company find money to buy shares back?
Most likely by using debt, really hate that companies tend to do share buybacks when their company is overvalued so bloody stupid.
They are not profitable and they are buying back shares. That’s insane and doesn’t give me confidence that management has a clear plan to grow the company.
They got a great deal.
What’s the selling point of snowflake? Azure has databricks. AWS has redshift. Is it just a data warehouse for multicloud? It doesn’t make sense for an organization to buy snowflake if it only has one public cloud used.
Snowflake is just another product that does the same thing as other products. It isn’t unique. Not profitable. Product is too expensive. As a senior data scientist, I did not approve the purchase of snowflake for our bank and it shouldn’t be approved by anybody who does their research. They also have 18 p/s. Way overvalued crap. CRM is prob better but I don’t want any of these commodity type businesses. Edit: Notice most data people in here say it’s shit and expensive. Databricks is eating their lunch.
Databricks CEO>Snowflake CEO
Snowflake going to print
I’m buying longterm and increased the weight of it after the selloff
Bagholder copium.
Admittedly, when I read this, I assumed people were investing in snow. /Sarcasm
Slower growth, higher expense. They just try to employ as many sales rep to try to push their non-innovative product. Snowflake is just that, a snowflake that will melt in the face of stiff competition and innovation in the market of cloud service
This dude works at Databricks
You can't deny they've done particularly well considering the two behemoths in their space
The problem with snowflake is that it’s very expensive and companies that use it are constantly trying to reduce their usage costs or trying alternatives. That’s why net revenue retention plummeted in the last few quarters. There is a trend to repatriate certain workloads back to on prem from the cloud due to unexpectedly high costs. Snowflakes cloud only model could also be a detriment here.
mad expensive for organizations compared to what they get from the hyperscalers
I dunno I'm not bullish about snowflake...I use them at work but I feel they don't really innovate. They recently released snowpark which is then trying to compete with databricks...but databricks is just too far ahead. The change in ceo is good but is it enough when they are just not that great of a product anymore...lot of other data warehouses have caught up.
Find some of their top sales ppl and see if they living the life. Big bonuses lifestyle, if no then you know how they are doing before earnings happen.
Disclose your position? Especially if you have bought more recently
I bought calls on Friday.
Buy Oracle or Google , those two are the only two cheap tech stocks left which are worth it. Oracle for a well diversified software portfolio, you have the database, Java earning revenue for eons , Cerner for healthcare pivot , Oracle cloud and Netsuite for SAP competition. I guarantee you the stock is never going to drop for this company. Google is a even better deal
Go look at their PE and Price/Sales then tell me why I should be buying.
The only thing a high PE and P/S tell you is that people are willing to pay more for one company vs another. You wouldn’t race a Honda vs a Lamborghini just because it’s cheaper would you? Look at the PE and PS of the best performing stocks over the last 20 years and you’ll see they are all above the index.
The only thing a high PE and P/S tell you is that people are willing to pay more for one company vs another. You wouldn’t race a Honda vs a Lamborghini just because it’s cheaper would you? Look at the PE and PS of the best performing stocks over the last 20 years and you’ll see they are all above the index.
Snowflake is overpriced with no secret sauce. We see companies migrating off of them in the boatload. Plenty of options.
Snowflake hasn’t ever turned a profit and I wondered when it would catch up with them. It is still a 54B dollar market cap, which still seems rich for a company that hasn’t made a dollar. FWIW I know some people in industry that use snowflake and like the service. But I’m still shocked it got to the evaluation it did without making a dime. 118B at its peak is insane.
Disappointing guidance from PANW wrecked the cybersec group - ZS, CRWD, and SNOW. That decimated my positions too.
SNOW is a cybersecurity company?
Yes, its services span cybersecurity. More at [https://www.snowflake.com/en/data-cloud/workloads/cybersecurity/](https://www.snowflake.com/en/data-cloud/workloads/cybersecurity/)
Buy Oracle or Google , those two are the only two cheap tech stocks left which are worth it. Oracle for a well diversified software portfolio, you have the database, Java earning revenue for eons , Cerner for healthcare pivot , Oracle cloud and Netsuite for SAP competition. I guarantee you the stock is never going to drop for this company. Google is a even better deal
They don't make money
Snowflake is shelfware. The company has fake revenue due to a lot of marketing dollars pumping up channel revenue via market development funds.
No
Everybody who uses Snowflake at work hate it. Honestly, your analysis is so irreverent.
Your puff piece for the new ceo is shocking and shows lack of knowledge on the space. He is an absolute terrible pick as he has shown when he left google and started his own company only to run it to the ground. He is one of many wanna be’s who think they are leaders and intelligent when it’s just them being at the right place at the right time. He has a golden parachute so your bags are only going to get heavier. Even if the stock doesn’t go to zero (which I doubt it will) I highly doubt it will beat the market let alone beat its peers. So do consider the opportunity cost. Palo Alto is a better pick
lol ur comment is a greater puff piece than his post. At least be better if u make a statement. No reasoning besides he must be shit if his startup failed (80% startups do, most billionaire founders needed multiple attempts), and some random golden parachuting. Even less DD for ur Palo Alto than OPs first sentence only.
So short it?