5 Stocks Trending on Robinhood

3. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 84

Snowflake Inc. (NYSE:SNOW) is one of the hottest stocks on Robinhood lately. Snowflake Inc. (NYSE:SNOW) provides a cloud-based platform that allows data management and business insights to be analyzed. 

On March 2, Snowflake Inc. (NYSE:SNOW) reported its Q4 earnings, posting an EPS of $0.12, topping estimates by $0.09. Revenue over the period gained 101.49% from the prior-year quarter, reaching approximately $384 million, outperforming market consensus by $10.90 million.

Truist analyst Joel Fishbein on March 24 maintained a Buy rating on Snowflake Inc. (NYSE:SNOW) but lowered the price target to $350 from $400, citing ​​valuations in the Infrastructure and Security software sectors.

Among the hedge funds tracked by Insider Monkey, 84 hedge funds were bullish on Snowflake Inc. (NYSE:SNOW) at the end of Q4 2021, compared to 73 funds in the previous quarter. Brad Gerstner’s Altimeter Capital Management owns the largest stake in the company, with more than 17 million shares worth $5.75 billion. 

Here is what Guardian Capital Management has to say about Snowflake Inc. (NYSE:SNOW) in its Q4 2021 investor letter:

“When we read the quarterly earnings updates, we continue to be impressed by the magnitude of the reallocation of resources within society. For instance, cloud spending is expected to nearly triple by 2025. The migration to the public cloud is a massive opportunity for Snowflake, as well as dozens of companies that are still small private ventures today. The markets for digital commerce, payments, advertising, streaming of content, and information intelligence, are likely to keep compounding at double digit growth rates for the foreseeable future.

No wonder there is much excitement and people feel increasing pressure to participate in wealth creation that is taking place in those fields. While many intelligent capital allocators understand the value that is to be found in investing in internet-enabled businesses, the fear of timing and valuation has been high for years. The shift in thinking and the new mental models required to transition from linearly growing companies to some of the most scalable business models is hard. It becomes even harder when having to do the homework in an echo chamber of worried market observers constantly pointing at rising stock prices combined with the ‘I told you so’ crowd that are flourishing nowadays.

All in all, we are convinced that the podium on which we are focused – the data-driven, cloudnative, founder-led, businesses that enable people to play and work digitally – is where the magic happens for a long time to come. What matters to us is whether the businesses are worth at least double in 2025. We think that when we will be looking back at today’s prices in 2030, they will likely look like bargains for several businesses.”