Analysts Are Downgrading These 5 Stocks

1. Snowflake Inc. (NYSE:SNOW)

Number Of Hedge Fund Holders: 81

BTIG analyst Gray Powell downgraded Snowflake Inc. (NYSE:SNOW) to Neutral from Buy without a price target on August 2. According to the analyst, his latest field surveys on Snowflake Inc. (NYSE:SNOW) “downticked,” indicating the potential for product revenue growth to slow in the coming quarters. Although the analyst sees a balanced risk/reward for Snowflake shares, he adds that feedback was “not nearly as good as 6 – 12 months ago as customers are becoming increasingly concerned about a weakening economic environment.”

At the close of Q1 2022, 81 hedge funds were eager on Snowflake Inc. (NYSE:SNOW) and held stakes worth $9.73 billion in the company. This is compared to 84 positions in the previous quarter with stakes worth $14.56 billion. 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.”

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