5 Best IPO Stocks To Buy Heading Into 2023

1. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 73

IPO Year: 2020

Headquartered in Montana, United States, Snowflake Inc. (NYSE:SNOW) is a cloud-computing company. The data reserves of Snowflake Inc. (NYSE:SNOW) provide unstructured and semi-structured data to analysts and allow companies to buy data easily through a single platform.

On December 01, 2022, analyst Mike Cikos at Needham reduced his price target on Snowflake Inc. (NYSE:SNOW) to $165 while keeping a Buy rating on the stock. According to the analyst, the Q3 results of the company displayed strong growth, with product revenue increasing 67% year on year. However, the management’s guidance for Q4 sent mixed signals to investors.

According to Insider Monkey’s database, 73 hedge funds held shares of the company at the end of the third quarter of 2022. Altimeter Capital Management was the most bullish fund on the company’s stock at the end of Q3 2022.

Here is what Baron Funds had to say about Snowflake Inc. (NYSE:SNOW) in its third-quarter 2022 investor letter:

Snowflake Inc. (NYSE:SNOW) provides a cloud platform for large-scale data analytics. Snowflake’s shares were up 22%, reacting positively to second quarter results that beat market forecasts with revenue growth of 83% year-over year and adjusted free-cash-flow margins of 12%. Record new customer additions and world-class dollar net retention of over 170% implied resiliency in demand despite increasing macro uncertainties. We remain shareholders and believe that Snowflake will be able to benefit from long-term growth with favorable unit economics, addressing one of the largest opportunities in technology. Snowflake’s culture of innovation (such as its expansion into cloud application development and data sharing), go-to-market initiatives, and an ongoing secular shift to the cloud in its end markets should help, in our view, sustain the company’s competitive moats over the long term.

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