Is Snowflake Stock a Good Investment?
Snowflake Investment Advice | SNOW |
- Examine Snowflake's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Snowflake's leadership team and their track record. Good management can help Snowflake navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact Snowflake's business and its evolving consumer preferences.
- Compare Snowflake's performance and market position to its competitors. Analyze how Snowflake is positioned in terms of product offerings, innovation, and market share.
- Check if Snowflake pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Snowflake's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Snowflake stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Snowflake is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Snowflake Stock
Researching Snowflake's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 61.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 3.39. Snowflake had not issued any dividends in recent years. The entity had a split on the 12th of December 2013.
To determine if Snowflake is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Snowflake's research are outlined below:
| Snowflake appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 2.81 B. Net Loss for the year was (837.99 M) with profit before overhead, payroll, taxes, and interest of 1.35 B. | |
| About 61.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Snowflake Inc. Baird Raises Price Target to 180, Highlights AI Growth Potential and Competitive Edge |
Snowflake Quarterly Gross Profit |
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Snowflake uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Snowflake. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Snowflake's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Snowflake's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Snowflake's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-08-21 | 2024-07-31 | 0.16 | 0.18 | 0.02 | 12 | ||
2024-05-22 | 2024-04-30 | 0.18 | 0.14 | -0.04 | 22 | ||
2021-08-25 | 2021-06-30 | -0.15 | -0.11 | 0.04 | 26 | ||
2021-05-26 | 2021-03-31 | -0.1602 | -0.1147 | 0.0455 | 28 | ||
2024-11-20 | 2024-10-31 | 0.15 | 0.2 | 0.05 | 33 | ||
2021-05-26 | 2021-04-30 | -0.16 | -0.11 | 0.05 | 31 | ||
2022-11-30 | 2022-10-31 | 0.04 | 0.11 | 0.07 | 175 | ||
2022-08-24 | 2022-07-31 | -0.01 | -0.08 | -0.07 | 700 |
Know Snowflake's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Snowflake is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Snowflake backward and forwards among themselves. Snowflake's institutional investor refers to the entity that pools money to purchase Snowflake's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jennison Associates Llc | 2024-09-30 | 4 M | Nuveen Asset Management, Llc | 2024-06-30 | 3.4 M | Fmr Inc | 2024-09-30 | 3.3 M | Two Sigma Advisers, Llc | 2024-06-30 | 3.2 M | Sands Capital Management, Llc | 2024-09-30 | 3 M | Baillie Gifford & Co Limited. | 2024-09-30 | 2.9 M | Two Sigma Investments Llc | 2024-09-30 | 2.2 M | Goldman Sachs Group Inc | 2024-06-30 | 2.2 M | Legal & General Group Plc | 2024-06-30 | 2.2 M | Vanguard Group Inc | 2024-09-30 | 27.2 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 24.7 M |
Snowflake's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 57.41 B.Market Cap |
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Snowflake's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.12) | (0.13) | |
| Return On Capital Employed | (0.20) | (0.21) | |
| Return On Assets | (0.10) | (0.11) | |
| Return On Equity | (0.16) | (0.15) |
Determining Snowflake's profitability involves analyzing its financial statements and using various financial metrics to determine if Snowflake is a good buy. For example, gross profit margin measures Snowflake's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Snowflake's profitability and make more informed investment decisions.
Snowflake's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Snowflake's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Snowflake. Check Snowflake's Beneish M Score to see the likelihood of Snowflake's management manipulating its earnings.
Evaluate Snowflake's management efficiency
Snowflake has return on total asset (ROA) of (0.1079) % which means that it has lost $0.1079 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.2162) %, meaning that it created substantial loss on money invested by shareholders. Snowflake's management efficiency ratios could be used to measure how well Snowflake manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.13 in 2024. Return On Capital Employed is likely to drop to -0.21 in 2024. At this time, Snowflake's Total Assets are fairly stable compared to the past year. Non Currrent Assets Other is likely to climb to about 237.4 M in 2024, whereas Net Tangible Assets are likely to drop slightly above 3 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 15.82 | 8.49 | |
| Tangible Book Value Per Share | 11.84 | 7.57 | |
| Enterprise Value Over EBITDA | (64.31) | (67.53) | |
| Price Book Value Ratio | 12.39 | 13.01 | |
| Enterprise Value Multiple | (64.31) | (67.53) | |
| Price Fair Value | 12.39 | 13.01 | |
| Enterprise Value | 56.4 B | 55.1 B |
The management team at Snowflake has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 0.828 |
Basic technical analysis of Snowflake Stock
As of the 28th of November, Snowflake has the Risk Adjusted Performance of 0.119, coefficient of variation of 690.82, and Semi Deviation of 1.62. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Snowflake, as well as the relationship between them. Please validate Snowflake variance and potential upside to decide if Snowflake is priced more or less accurately, providing market reflects its prevalent price of 173.7 per share. Given that Snowflake has jensen alpha of 0.3966, we advise you to double-check Snowflake's current market performance to make sure the company can sustain itself at a future point.Snowflake's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Snowflake insiders, such as employees or executives, is commonly permitted as long as it does not rely on Snowflake's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Snowflake insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Raghunathan Vivek over a month ago Acquisition by Raghunathan Vivek of 85978 shares of Snowflake subject to Rule 16b-3 | ||
Benoit Dageville over two months ago Disposition of 558 shares by Benoit Dageville of Snowflake at 109.96 subject to Rule 16b-3 | ||
Jayshree Ullal over three months ago Acquisition by Jayshree Ullal of 2292 shares of Snowflake subject to Rule 16b-3 | ||
White James N over a year ago Conversion by White James N of 25793 shares of Snowflake |
Snowflake's Outstanding Corporate Bonds
Snowflake issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Snowflake uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Snowflake bonds can be classified according to their maturity, which is the date when Snowflake has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Snowflake's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Snowflake's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.119 | |||
| Market Risk Adjusted Performance | 0.3247 | |||
| Mean Deviation | 2.1 | |||
| Semi Deviation | 1.62 | |||
| Downside Deviation | 2.18 | |||
| Coefficient Of Variation | 690.82 | |||
| Standard Deviation | 4.51 | |||
| Variance | 20.31 | |||
| Information Ratio | 0.1158 | |||
| Jensen Alpha | 0.3966 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.2392 | |||
| Treynor Ratio | 0.3147 | |||
| Maximum Drawdown | 34.99 | |||
| Value At Risk | (3.40) | |||
| Potential Upside | 4.2 | |||
| Downside Variance | 4.76 | |||
| Semi Variance | 2.63 | |||
| Expected Short fall | (2.38) | |||
| Skewness | 5.64 | |||
| Kurtosis | 40.17 |
| Risk Adjusted Performance | 0.119 | |||
| Market Risk Adjusted Performance | 0.3247 | |||
| Mean Deviation | 2.1 | |||
| Semi Deviation | 1.62 | |||
| Downside Deviation | 2.18 | |||
| Coefficient Of Variation | 690.82 | |||
| Standard Deviation | 4.51 | |||
| Variance | 20.31 | |||
| Information Ratio | 0.1158 | |||
| Jensen Alpha | 0.3966 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.2392 | |||
| Treynor Ratio | 0.3147 | |||
| Maximum Drawdown | 34.99 | |||
| Value At Risk | (3.40) | |||
| Potential Upside | 4.2 | |||
| Downside Variance | 4.76 | |||
| Semi Variance | 2.63 | |||
| Expected Short fall | (2.38) | |||
| Skewness | 5.64 | |||
| Kurtosis | 40.17 |
Consider Snowflake's intraday indicators
Snowflake intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Snowflake stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Snowflake Corporate Filings
F4 | 25th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 20th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Snowflake Stock media impact
Far too much social signal, news, headlines, and media speculation about Snowflake that are available to investors today. That information is available publicly through Snowflake media outlets and privately through word of mouth or via Snowflake internal channels. However, regardless of the origin, that massive amount of Snowflake data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Snowflake news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Snowflake relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Snowflake's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Snowflake alpha.
Snowflake Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Snowflake can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Snowflake Historical Investor Sentiment
Investor biases related to Snowflake's public news can be used to forecast risks associated with an investment in Snowflake. The trend in average sentiment can be used to explain how an investor holding Snowflake can time the market purely based on public headlines and social activities around Snowflake. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Snowflake's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Snowflake and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Snowflake news discussions. The higher the estimate score, the more favorable the investor's outlook on Snowflake.
Snowflake Corporate Management
| Marcin Zukowski | CoFounder Engineering | Profile | |
| Brad Burns | Chief Officer | Profile | |
| Muralidhar | Chief Officer | Profile | |
| Tyler Prince | Senior Channels | Profile | |
| Sylvia Pagan | Chief Officer | Profile | |
| Thierry Cruanes | CoFounder CTO | Profile |
Additional Tools for Snowflake Stock Analysis
When running Snowflake's price analysis, check to measure Snowflake's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Snowflake is operating at the current time. Most of Snowflake's value examination focuses on studying past and present price action to predict the probability of Snowflake's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Snowflake's price. Additionally, you may evaluate how the addition of Snowflake to your portfolios can decrease your overall portfolio volatility.