#1 in CIO survey spending intentions

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.

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Awesome find, JonWayne, thanks so much for posting it. I’m often astounded by the things you discover!
Thanks again,
Saul

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Any mention of dreaded fiend, errr competitor Databricks in that survey? Last I saw databricks was growing nicely (but slower than SNOW - at least until this past quarters guidance) and was about $800- $900 million behind revenue wise.

Tinker.

Great find!

Any reason or thoughts as to why Datadog or sentinel one isn’t on here?

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Considered asking a related question:

In the observability space, we see Elastic and Spunk ranked, but no Datadog nor Dynatrace.

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I think it’s important to read what the survey says and not to infer what it DOESN’T say.

145 CIO’s were asked questions. As with all surveys, individuals take different approaches. Did the CIO ask staff members to weigh in? Did they do it in a vacuum? Did they look at their roster of suppliers and compare? Did they look at their strategic roadmap? Did they recall the last 10 meetings they had and make some inferences? We just don’t know.

  • 31 of 145 have SNOW in the installed base and will spend more. (compare that to MSFT with 140 of 145)
  • CRWD is a big winner with 53 of 145 in the installed base
  • Databricks may (or may not) be excluded because they are in less than 20 of the 145 installed bases? Same with Sentinel One?
  • Would we be ‘freaked’ out if Cloudflare wasn’t on the list? They are in 21 of 145 installed bases with increased spend at the 33% level. (so close the the 20 minimum)
  • Where’s Palo Alto Networks? Huge company.
  • UiPath is in the install base of 39 of 145? I had no idea. Watch that company!
  • VMWare and Adobe – WOW! In every company at a noteworthy level……

I assume ‘observability’ just isn’t on the radar for CIO’s? (CTO’s watching very closely). Data, Cybersecurity, and Cloud are much more ‘newsworthy’

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People are wondering why their fav company is not on this list… Maybe because JPM doesn’t have a dog in that fight? (ie - Does JPM do any underwriting / investing for DDOG?)

Quoted from the OP - See JPM’s CIO survey…

Just thinking about how Wall Street works…
'38Packard

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