Investing in Snowflake Inc. A Comprehensive Review

Snowflake Inc. has revolutionized the way we think about data warehousing and cloud computing. The company's innovative platform has made it possible to store and process vast amounts of data in a scalable and secure manner.

Founded in 2012 by Benoit Dageville, Thierry Cruanes, and Marcin Zukowski, Snowflake Inc. has quickly gained traction in the industry. The company's initial public offering (IPO) in 2019 was a major milestone, raising $3.4 billion and valuing the company at $12.4 billion.

Snowflake's cloud-based data warehousing platform is designed to handle complex queries and provide real-time analytics. With its unique architecture, Snowflake can process large amounts of data in parallel, making it an attractive solution for businesses of all sizes.

Snowflake's platform is built on top of Amazon Web Services (AWS), which provides a highly scalable and secure infrastructure for data storage and processing. This partnership has enabled Snowflake to offer a robust and reliable service to its customers.

Snowflake Inc. has a diverse leadership team with several key executives.

The current CEO of Snowflake Inc. is Sridhar Ramaswamy, who has been in the role since February 27, 2024, at the age of 57.

Michael Scarpelli serves as the Director of Finance and CFO, a position he has held since July 31, 2019, also at the age of 57.

Sunny Bedi is the Chief Technology and Science Officer, and has been in this role since December 31, 2019, at the age of 50.

Here is a list of the top executives at Snowflake Inc.:

The board of directors at Snowflake Inc. is composed of several experienced individuals, including Mike Speiser, Benoit Dageville, Jeremy Burton, and Frank Slootman, among others.

The Managers and Directors of Snowflake Inc. are a diverse group of individuals with a range of backgrounds and experience. Sridhar Ramaswamy is the CEO, having taken on the role on February 27, 2024.

Sridhar Ramaswamy is 57 years old, and has been with the company since 2024. Michael Scarpelli is the Director of Finance/CFO, and has been in this role since July 31, 2019. He is also 57 years old. Sunny Bedi is the Chief Tech/Sci/R&D Officer, and has been with the company since December 31, 2019. He is 50 years old.

Here's a list of the top managers and directors at Snowflake Inc.:

Frank Slootman is the Chairman, and has been in this role since March 31, 2019. He is 65 years old.

Snowflake recently announced the retirement of its CEO, Frank Slootman, and his replacement is Sridhar Ramaswamy, a former top executive at Alphabet's Google.

Ramaswamy brings a wealth of experience to the role, having previously served as CEO of Neeva, an artificial intelligence startup that Snowflake acquired in 2023.

Snowflake's acquisition of Neeva marked a significant move into the AI space, and Ramaswamy's appointment suggests a continued focus on this area of growth.

Ramaswamy's background in the tech industry, particularly at Google, gives him a unique perspective on the competitive landscape, including the likes of Amazon and Microsoft's cloud data analytics platforms.

Snowflake Inc. is a company with a significant market presence, and its financials and valuation are worth examining. The company's capitalization is a staggering $57.46B.

The enterprise value of Snowflake Inc. is $54.53B, which is a substantial amount of money. This value is derived from the company's market capitalization and debt.

The P/E ratio, which is a measure of a company's stock price relative to its earnings, is expected to be around -45.1x in 2025 and -46.3x in 2026. This is a negative ratio, indicating that the company's stock price is expected to be lower than its earnings.

The EV/Sales ratio, which compares a company's enterprise value to its sales, is expected to be 15.2x in 2025 and 12.2x in 2026. This ratio is a useful metric for evaluating a company's valuation.

Here are the key valuation metrics for Snowflake Inc.:

Snowflake Inc.'s financials are also worth examining. The company's net sales are expected to be $3.58B in 2025 and $4.42B in 2026. This represents a significant increase in sales over the two-year period.

The company's net income, however, is expected to be -$1.29B in 2025 and -$1.27B in 2026. This indicates that the company is currently operating at a loss.

The free-float of Snowflake Inc.'s stock is 95.28%, which means that a significant portion of the company's shares are available for trading.

Snowflake stock has been on a roll, advancing 38% in 2023, outpacing the Nasdaq composite's 43% jump and the S&P 500's 24% climb.

The stock's price performance is somewhat of a mixed bag, with a Relative Strength Rating of only 15 out of 99, indicating it lags behind other stocks in the last 52 weeks.

Analysts are weighing in with their recommendations, with Wedbush upgrading Snowflake to Outperform from Neutral and raising its price target to $190 from $160.

Here are some recent analyst recommendations:

Analysts' Recommendations are a crucial factor in determining the potential performance of a stock.

Several analysts have recently updated their recommendations for Snowflake Inc. Analysts at Wedbush upgraded their rating to Outperform from Neutral, with a price target increase to $190 from $160.

Here are some key analyst recommendations for Snowflake Inc.:

These analyst recommendations can be a useful guide for investors looking to make informed decisions about their stock portfolio.

Snowflake's stock has taken a hit due to concerns over stiff competition with Databricks, retreating about 34% in 2024.

The iShares Expanded Tech-Software Sector ETF (IGV) has actually advanced 26% during the same period.

Analysts expect Databricks to launch an initial public offering, but the timing is unclear.

Snowflake's partnership with Alphabet's Mandiant cybersecurity unit has been working to remedy a recent hacking incident that impacted customers like AT&T, Ticketmaster, and Nieman Marcus.

Databricks' potential IPO could further impact Snowflake's stock performance.

If you're considering buying Snowflake stock, think twice. Snowflake stock advanced 38% in 2023, but that's still 5% less than the Nasdaq composite's 43% jump during the same period.

The Relative Strength Rating of 15 out of 99 is a major red flag. This rating shows how a stock's price performance stacks up against all other stocks over the last 52 weeks.

Snowflake's IBD Composite Rating of 37 out of 99 is another concern. The best growth stocks have a Composite Rating of 90 or better, and Snowflake is far from that mark.

Despite its weak ratings, Snowflake stock has an Accumulation/Distribution Rating of B, according to IBD MarketSmith analysis. This rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

As of November 20, with Snowflake earnings due after the market close, SNOW stock is not in a buy zone. It needs to form a base to be actionable.