10 Best Aggressive Growth Stocks to Buy According to Hedge Funds

5. Snowflake Inc. (NYSE:SNOW)

Revenue Growth: 30%

Number of Hedge Fund Investors In Q2 2024: 69

Snowflake Inc. (NYSE:SNOW) is a specialty cloud computing industry that enables companies to consolidate their data under a single roof to run and generate analytics. A classic cloud computing company, the firm’s hypothesis is based on its ability to grow and cost control. Snowflake Inc. (NYSE:SNOW) has to consistently outperform investor expectations for both of these or risk their ire. Its data warehousing model lends it a significant advantage in the current SaaS market due to AI’s requirement for copious amounts of data. Snowflake Inc. (NYSE:SNOW)’s position is further bolstered by the fact that it commands a 22% data warehousing market share which provides it with key customer partnerships and economies of scale. However, the criticality of cost control and growth was evident during the Q2 2025 earnings, when even though Snowflake Inc. (NYSE:SNOW) raised its fiscal 2025 guidance to $3.36 billion from an earlier $3.3 billion, the fact that this wasn’t accompanied by an updated margin forecast led to the stock tanking by 14% in the aftermath.

Snowflake Inc. (NYSE:SNOW)’s management commented on the cost control during the Q2 2025 earnings call:

“On the margin side, the margins were slightly better than what we had forecast internally, but it doesn’t change the guidance that we’ve given 75% for the year. Part of that is we’re still waiting and some deployments for GPUs that around the world that we don’t have yet that we’re anticipating would have come in this quarter. That’s really the — on the margin side, the gross margin side.”