News story on Snowflake

Investment Analysis Clubs Saul’s Investing Discussions
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Snowflake: This was shortened from a brief news story email I received from Seeking Alpha on Friday.

• Calling Snowflake the “data cloud category killer,” Evercore initiates coverage with an Outperform rating and $311 price target.
• Analyst Kirk Materne believes “there are few software firms over the last decade that have as large a growth opportunity as Snowflake” and that upside opportunity offsets the near-term need to “grow into” the valuation.
• The analyst says SNOW’s data warehousing total addressable market of $78B in CY24 will drive 60% CAGR between 2020 and 2025.
• Materne: “SNOW is NOT for the faint of heart and our bullish view will play out over multiple years, not just the next few quarters.” …

I usually do not pay much attention to analysts as they tend to be so wildly conservative in their estimates and predictions of the future. I can not remember any analyst ever saying something like "there are few software firms over the last decade that have as large a growth opportunity as…," or estimate a 60% CAGR over a six year period.

I guess he is just being overly conservative as analysts usually are. :grinning:

Saul

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Hi Harishby21:
Hybrid software engineer - ish person here. I didn’t detect anything racist at all in the post you refer to. Rather it stated (to me) that companies spend a huge amount of time and energy (as does mine) on ETL, and that it has become the kind of work that can be contracted out.

We are a smallish company, and are users of Snowflake, and I see a lot of potential in it (IT tends towards Azure and the MS stack of technologies, however). Some of our vendors have built their product to run on Snowflake, btw, which I was very surprised to learn, and is an indication of the potential of the company. They are a route accounting software program and and warehouse management system program, and certainly the latter is absolutely NOT one I would ever have imagined could run on Snowflake (WMS systems often incorporate motion control, which has low tolerance for latency).

Long SNOW (though bought at the peak, alas)

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