1. Snowflake Inc (NYSE:SNOW)
52 Week Range: $107.93 – $237.72
Current Share Price: $110.41
Number of Hedge Fund Holders: 69
Market Capitalization as of September 4: $37 Billion
Snowflake Inc (NYSE:SNOW) is a leading data storage and sharing company that provides a cloud-based data platform. It provides a Data Cloud service that allows users to gather data into a unified, reliable source, thereby facilitating the generation of significant business insights. Additionally, it utilizes artificial intelligence (AI) to address challenges in business operations.
The company’s competitive edge stems from the fact that it sells data analytics and management software that runs on the cloud computing platforms of some of the biggest companies, including Amazon and Microsoft. The company now has 510 customers with trailing 12-month product revenue greater than $1 million and 736 Forbes Global 2000 customers, representing 28% and 5% year-over-year growth, respectively.
While Snowflake Inc (NYSE:SNOW) has pulled back significantly from its 52-week highs, it is one of the best buy-the-dip stocks to invest in as it has grown its revenues by over $3 billion annually. The company delivered solid second-quarter results, with product revenue increasing 30% yearly to $829.3 million. Total revenue was up 295 to $868.8 million.
Analysts expect the company to keep growing, with a projected 26% increase in revenue for the current fiscal year, with another 23% rise expected in the following year. Snowflake Inc (NYSE:SNOW) has successfully turned a profit and recently introduced a plan to buy back its shares, aiming to distribute earnings back to its investors.
Following an analysis of 912 hedge funds tracked by Insider Monkey, 69 held stakes in Snowflake Inc (NYSE:SNOW) as of the end of the second quarter of 2024.
Here is what Baron Fifth Avenue Growth Fund said about Snowflake Inc. (NYSE:SNOW) in its Q2 2024 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform that is predominantly used for data analytics. The stock declined 16.4% as investors evaluated the impact of a recently announced CEO transition, an investment cycle driven by spend on AI, a cybersecurity incident, and a rapidly changing competitive environment. With GenAI capturing a larger portion of the public discourse, Snowflake’s positioning in the future data stack is under scrutiny by both investors and customers. We believe Sridhar Ramaswamy, the newly appointed CEO, can help the business more efficiently transition toward an AI-first world. While Databricks and other key competitors are presenting strong results, we believe Snowflake’s brand, existing customer base, and accelerating product innovation should allow it to continue to capture share in a relatively large and strategic market. Management continues to describe strong demand trends for its core data analytics, which is also demonstrated by the relatively healthy expansion rates among existing customers while new go-to-market initiatives can help grow the customer base further. Longer term, we remain excited about the Snowflake’s strategic opportunity as the data platform for its customers.”
The best buy-the-dip stocks to invest in are companies trading at discounted valuations with tremendous upside potential. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than the top activist investment plays, check out our report about the cheapest AI stock.
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