See JPM’s CIO survey highlight chart here about “Installed Base % with net-increase in annual spending for 2022”:
https://pbs.twimg.com/media/FV9do_6UcAALVAi?format=jpg&n…
While SNOW was most impressive at #1, take a look at CROWDSTRIKE hanging at #4 right behind MSFT/GCP and ahead of AWS!
CLOUDFLARE is #9.
ZSCALER at #15
MDB at #20
Some caveats: excludes companies with n<20
Also, SNOW was the company with the most mentions at #1, and CRWD at second most mentions at #2.
As my portfolio currently consists of only DDOG, CRWD, SNOW, NET, ZS, MDB I think the survey boosts confidence in most of my holdings.
Other tidbits from analysts recently regarding SNOW:
JUNE 23 (today): https://www.barrons.com/articles/snowflake-stock-price-upgra…
According to JP Morgan’s analyst Mark Murphy…based on the results of J.P. Morgan’s annual chief information officer survey, in which the company surged to “elite territory.”
The survey polled 142 CIOs that control more than $100 billion of IT spending. Snowflake ranked No. 1 in installed base spending intentions, beating out Microsoft, Alphabet-owned Google Cloud Platform, and CrowdStrike Holdings.
Snowflake also ranked No. 1 among emerging companies whose vision most impressed respondents.
In addition, Murphy is confident that Snowflake is reaching “an inflection point” in terms of generating free cash flow, and is benefitting from secular tailwinds and trends.
“The pent-up demand for its solutions has allowed Snowflake to exhibit a very rare level of growth at scale with best-in-class growth-plus-margin profile,” he wrote. “We expect Snowflake to continue to grow revenue at a rapid scale.”
…Our $165 Dec-22 PT is based on ~18x EV/CY23E revenue…
JUNE 16:
Piper Sandler analyst Brent Bracelin says that based on customer conversations at Snowflake’s user event, the primary investor pushback and fear that a consumption driven model coupled with cost optimization efforts could materially erode growth potential proved to be an overly bearish view. He recommends large-cap growth investors take advantage of the “cost optimization overhang” and continue adding to positions in Snowflake. The company has “multi-billion growth potential, great leadership, great technology, and a disciplined operating model that is profitable and generates positive free cash flow,” Bracelin tells investors in a research note.
JUNE 15:
Canaccord analyst David Hynes upgraded Snowflake to Buy from Hold with an unchanged price target of $185, arguing that shares are “too cheap” if one take management’s 2028 targets for $10B in product revenue and 25% free cash flow margins shared at Snowflake’s analyst day at face value. He would be using the market-driven pullback to get more constructive on what he calls “one of the highest quality names” he covers, said Hynes, adding that while the path “might not be perfectly linear from here,” he is “quite confident” that Snowflake will be worth more in the years ahead.