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We came across a bullish thesis on Snowflake Inc. (SNOW) on Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on SNOW. Snowflake Inc. (SNOW)'s share was trading at $140.23 as of April 22nd. SNOW’s forward P/E was 123.46 according to Yahoo Finance.
A software engineer at work, surrounded by a wall of computer monitors connected to a 'Data Cloud' platform.
Snowflake (SNOW) is emerging as a top-tier SaaS investment, projected to achieve over 20% revenue and EBITDA growth in the next two years. With a best-in-class 126% net revenue retention rate, the company demonstrates strong customer loyalty and expansion. Even with R&D expenses rising 38%, Snowflake is posting margin improvements—highlighting its operational strength and scalable business model. The company’s financial health is robust, with no long-term debt, $5 billion in cash reserves, and $2 billion still available in its share repurchase program, providing ample financial flexibility and capital return potential. Snowflake’s relentless innovation and strategic focus on data infrastructure and cloud analytics position it for sustained long-term growth. Altogether, SNOW offers a compelling investment opportunity for those seeking high-quality exposure to one of the most resilient and forward-looking players in the software industry.
Snowflake Inc. (SNOW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held SNOW at the end of the fourth quarter which was 71 in the previous quarter. While we acknowledge the risk and potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.