10 Stocks on Jim Cramer’s Radar

2. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 85

A caller inquired about Snowflake Inc. (NYSE:SNOW) and Cramer said:

“I like Snowflake. I like it. I think that, you know what, when I look at where that stock is now… they’re hitting a lot of the tech stocks. That may be a good one to be able to be in right now. God yes. It’s down the line. Went down $6 today. I pulled the trigger.”

Snowflake (NYSE:SNOW) offers a cloud-based data platform that helps organizations manage and unify their data to gain insights, develop applications, and address business challenges using AI. Burke Wealth Management stated the following regarding the company 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.”