5 Tech Stocks to Avoid Until 2024

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1. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 81

Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform in the United States. Snowflake Inc. (NYSE:SNOW) stock has declined about 52% year to date as of August 9. Earnings growth has slowed for Snowflake Inc. (NYSE:SNOW) over the years. BTIG analyst Gray Powell downgraded Snowflake Inc. (NYSE:SNOW) to Neutral from Buy on August 2 without a price target. The analyst said his latest field surveys on Snowflake Inc. (NYSE:SNOW) “downticked,” which indicates likelihood for product revenue growth to slow in the upcoming quarters. Sequential trends for the hyperscale cloud IaaS providers declined in Q2, which is a negative signal for Snowflake Inc. (NYSE:SNOW), the analyst told investors. In recent customer checks, spending patterns with Snowflake Inc. (NYSE:SNOW) remained strong, but feedback was “not nearly as good as 6 – 12 months ago as customers are becoming increasingly concerned about a weakening economic environment,” added the analyst. 

According to Insider Monkey’s Q1 data, 81 hedge funds reported owning stakes in Snowflake Inc. (NYSE:SNOW), compared to 84 funds in the last quarter. Brad Gerstner’s Altimeter Capital Management is the biggest stakeholder of the company, with 17 million shares worth $5.75 billion. 

Here is what ClearBridge Aggressive Growth Strategy has to say about Snowflake Inc. (NYSE:SNOW) in its Q2 2022 investor letter:

“Snowflake operates a cloud-based data platform for small and medium-sized businesses and enterprise customers. The company is a key beneficiary of software spending moving to the cloud, as well as the increasing strategic importance of data. With the potential to address the large and growing market for data cloud, a roughly $250 billion plus opportunity by 2026, we see a long runway for growth ahead. Although the company is already profitable, we believe Snowflake still has significant room for free cash flow margin expansion.”

You can also take a look at 10 Dividend Stocks of All Time and Analyst Are Cutting Estimates on These 10 Tech Stocks

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