10 Best Guru Stocks To Buy Now

4. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders In Q2 2024: 69

Average Analyst Share Price Target: $167.52

Average Analyst Share Price Target Upside: 50%

Snowflake Inc. (NYSE:SNOW) is a data warehousing company that enables businesses to consolidate their data in a single platform to generate insights. It is the second data focused stock on our list of the best Guru stocks to buy, which underscores the importance of this segment to investing when it comes to hedge fund sentiment. This is unsurprising since data is the oil of the artificial intelligence industry and Snowflake Inc. (NYSE:SNOW) is one of the leaders in this space. Estimates show that the firm commands a 22% market share, which provides it with key cost benefits that SaaS stocks hinge on along with stable industry partnerships which are key for stable recurring revenue. For Snowflake Inc. (NYSE:SNOW), this also means that when compared to some other SaaS companies that might struggle as AI enables businesses to develop their own software, the firm can weather the storm by providing data warehousing services. However, growth and cost control are key, as evidenced after the Q2 2025 earnings call when a lack of a margin forecast update led to the stock falling by 14%.

Baron Funds mentioned Snowflake Inc. (NYSE:SNOW) in its Q2 2024 investor letter. Here is what the fund said:

“Snowflake Inc. is a leading cloud data platform that is predominantly used for data analytics. The stock declined 16.4% as investors evaluated the impact of a recently announced CEO transition, an investment cycle driven by spend on AI, a cybersecurity incident, and a rapidly changing competitive environment. With GenAI capturing a larger portion of the public discourse, Snowflake’s positioning in the future data stack is under scrutiny by both investors and customers. We believe Sridhar Ramaswamy, the newly appointed CEO, can help the business more efficiently transition toward an AI-first world. While Databricks and other key competitors are presenting strong results, we believe Snowflake’s brand, existing customer base, and accelerating product innovation should allow it to continue to capture share in a relatively large and strategic market. Management continues to describe strong demand trends for its core data analytics, which is also demonstrated by the relatively healthy expansion rates among existing customers while new go-to-market initiatives can help grow the customer base further. Longer term, we remain excited about the Snowflake’s strategic opportunity as the data platform for its customers.”