3. Snowflake Inc. (NYSE:SNOW)
3-Years Sales Growth: 43.81%
Number of Hedge Fund Holders: 85
Number of Billionaires: 18
Value of Billionaire Holdings: $2,135,572,366
Snowflake Inc. (NYSE:SNOW) is a technology company that focuses on data storage and analytics. One of the key offerings is AI Data Cloud which allows businesses to store, analyze, and share data across organizations. On March 28, William Power, an analyst at Robert W. Baird maintained a Buy rating on the stock with a price target of $200.
The analyst noted that Snowflake Inc.’s (NYSE:SNOW) platforms are known for their ease of use, strong governance, and efficiency. All of these features make it appealing to enterprises. In addition, the company’s developments in AI such as Cortex AI, position it to capitalize on the demand for AI-driven analytics. The company has established successful partnerships with companies like Ochsner Health and other companies which is reflective of its value proposition.
During the fiscal fourth quarter of 2024, Snowflake Inc. (NYSE:SNOW) achieved product revenue of $943.3 million, indicating 28% year-over-year growth. Notable, the company maintained an impressive revenue retention rate of 126%. It is one of the best growth stocks to buy according to billionaires.
Burke Wealth Management stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q4 2024 investor letter:
“Snowflake Inc. (NYSE:SNOW): Chapter two of the Prodigal Son Returns features Snowflake. Snowflake’s return to the portfolio required some tangible progress on the product innovation front as well as an uptick in business momentum before I was ready to slaughter the proverbial fattened calf. To review, we sold our stake in Snowflake following its fourth quarter 2023 earnings release in which legendary CEO Frank Slootman announced his retirement and 2024 guidance came in significantly below expectations. While new CEO Sridhar Ramaswamy has an excellent reputation as an innovator in the technology sector, we needed to see some tangible signs of progress on that front as well as a stabilization in the core data analytics business before repurchasing the stock. That is what we got with the release of third quarter earnings. Consumption trends in the core business have stabilized and are improving while there are several exciting new product offerings around AI that have been added to the platform. We were early to Snowflake when we made our initial purchase in the summer of 2023. We subscribed to the belief that any companies seeking to implement AI solutions in their business will first need to make sure their data is both accessible and secure, which would drive tremendous demand for Snowflake’s platform. We still do. As we discussed in the agentic age portion of this letter, sometimes the path from installing the data center compute power necessary for generative AI and arrival of the applications necessary to unlock the productivity promises is not always straight. That said, while the path may be winding we remain confident in the ultimate destination. We think Snowflake is going to be a big player in helping enterprises get their data accessible and safely delivering AI solutions to that data, whether it be their own or from trusted partners, that will drive the productivity enhancing business insights that are the reasons for the hundreds of billions of dollars being invested in artificial intelligence.”
