5 Best Magic Formula Stocks to Buy Now

1. Snowflake Inc. (NYSE:SNOW)

Joel Greenblatt’s Stake Value: $60.3 million

Cloud company Snowflake Inc. (NYSE:SNOW) is the biggest holding of Joel Greenblatt. The investor has a $60 million stake in Snowflake Inc. (NYSE:SNOW). Snowflake Inc. (NYSE:SNOW) shares have gained about 25% year to date through July 11.

As of the end of the first quarter of 2023, 63 hedge funds tracked by Insider Monkey had stakes in Snowflake Inc. (NYSE:SNOW). The biggest stakeholder of Snowflake Inc. (NYSE:SNOW) during this period was Altimeter Capital Management of Brad Gerstner which owns a $2.4 billion stake in the company. The second biggest stakeholder of Snowflake Inc. (NYSE:SNOW) is Warren Buffett’s Berkshire with a $945 million stake in the company.

Last month, Snowflake Inc. (NYSE:SNOW) jumped after William Blair analyst Jason Ader started covering the stock with an Outperform rating, saying the company is a leader in the analytical database market and its product is the “easiest to use.”

Ithaka US Growth Strategy made the following comment about Snowflake Inc. (NYSE:SNOW) in its first quarter 2023 investor letter:

“Snowflake Inc. (NYSE:SNOW) is a dominant player in the Data Warehousing market, offering customers the ability to break down data silos and derive value from rapidly growing data sets through Snowflake’s analytical database product, the Data Cloud. The company’s base business is benefitting from a number of secular tailwinds, the three most prevalent being: 1) data-driven decision making, 2) cloud adoption, and 3) the exponential growth of corporate data. The company’s visionary management team, headed by industry veteran Frank Slootman, plans to capture its fair share of this growth through: 1) executing on its land and expand model, 2) acquiring new customers, 3) growing internationally, and 4) expanding its nascent partner network. The stock’s negative contribution in the quarter was due to the timing of Ithaka’s purchase (mid-February) and its small portfolio weighting (100bps).”

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