We recently published a list of 10 Best Big Data Stocks To Buy Now. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against the other big data stocks.
The global big data market is on a rapid growth trajectory, projected to reach $103 billion by 2027, more than doubling its size from 2018. This explosive growth is driven by the increasing reliance on data to inform business decisions, optimize operations, and unlock new revenue streams. According to Statista, the software segment, in particular, is poised to dominate, accounting for 45% of the market by 2027. Big data, characterized by its massive volume, high velocity, and wide variety, presents both opportunities and challenges. Traditional data processing tools struggle to handle the scale and complexity of modern data sets, which have been expanding rapidly due to the surge in mobile data traffic, cloud computing, and the integration of technologies like artificial intelligence (AI) and the Internet of Things (IoT). These factors have contributed to the rise of big data as a critical asset for businesses across industries. As the data landscape evolves, advanced analytics tools such as predictive analytics and data mining have become essential for extracting valuable insights from vast datasets.
The rise of the Internet of Things (IoT) has led to a surge in connected devices, generating enormous amounts of data that necessitate advanced big data solutions for effective processing and analysis. Cloud computing enhances the big data market by offering scalable and cost-efficient storage and processing capabilities, enabling businesses to handle large data volumes with ease. Technological advancements in big data are continually enhancing the management and analysis of vast datasets, making these processes more accessible and practical. This progress supports the growing trend of data-driven decision-making, where companies increasingly rely on data insights to make informed choices, optimize operations, and secure a competitive edge. Additionally, big data analytics helps organizations uncover hidden patterns and customer trends, fostering innovation and allowing for the development of products and services that adapt to evolving market demands, underscoring the vital role of big data in today’s competitive landscape.
Investment in big data technologies is also driven by stringent data privacy and security regulations. Compliance with laws like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S. is becoming mandatory for businesses. These regulations require robust data handling practices, pushing companies to implement advanced big data solutions that ensure data privacy and security. Enhanced measures such as secure storage and data privacy protocols build trust with consumers and stakeholders. Moreover, the need for effective data governance frameworks is accelerating the adoption of sophisticated big data technologies. These solutions facilitate comprehensive data management, including tracking data lineage, maintaining data integrity, and conducting regular audits. Emphasis is placed on integrating encryption, anonymization, and real-time monitoring tools to prevent data breaches and unauthorized access. Continuous investment in big data technologies is crucial for businesses to meet evolving compliance requirements, thereby driving the market’s growth.
According to a report by Verified Market Reserach, North America is projected to remain a leader in the big data market, driven by key industries such as finance, healthcare, and e-commerce. In the financial sector, Big Data analytics plays a crucial role for banks, investment firms, and insurance companies by providing deeper insights into customer behavior, detecting fraudulent activities, and evaluating risk. By analyzing extensive data sets, including transaction histories, market trends, and customer demographics, financial institutions can uncover patterns and anomalies that aid in making informed decisions and managing risks. Predictive analytics models further enhance market trend forecasts, optimize investment strategies, and improve portfolio management, contributing to greater profitability and competitive edge in the financial sector.
In healthcare, Big Data analytics significantly improves patient care, reduces costs, and advances medical research. Healthcare providers use Big Data to analyze electronic health records (EHRs), medical imaging, and genomic data to tailor treatment plans, diagnose diseases with greater precision, and predict patient outcomes. Population health analytics also helps healthcare organizations identify high-risk groups, allocate resources more effectively, and implement preventive measures. Additionally, the integration of big data into healthcare systems supports real-time monitoring of patient health metrics, allowing for timely interventions and better overall outcomes. Pharmaceutical companies benefit from big data by accelerating drug discovery, refining clinical trials, and creating personalized medicines, driving innovation and progress in medical science.
With such a robust outlook for the big data market, investors are keenly eyeing companies that are well-positioned to capitalize on this trend. In this article, we will explore the best big data stocks to buy now, focusing on companies that are well-positioned to capitalize on the immense growth opportunities within this dynamic sector.
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A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc. (NYSE:SNOW)
Average Analyst Share Price Target Upside: 53.70%
Average Analyst Share Price Target: $196.79
Topping our list of ten best big data stocks to buy now is Snowflake Inc. (NYSE:SNOW). Snowflake Inc. (NYSE:SNOW) is attracting significant attention from analysts, who foresee a strong growth trajectory for the company. With an average share price target of $196.79, analysts predict a potential upside of 53.70%. This optimism is fueled by Snowflake Inc. (NYSE:SNOW) innovative product offerings and robust demand in the data management sector, positioning it well for future gains. The company’s cloud-based data warehousing solutions offer a unique advantage by being compatible across multiple cloud platforms, making it an ideal choice for organizations with complex data needs.
KeyBanc Capital Markets remains optimistic about Snowflake Inc. (NYSE:SNOW), maintaining an Overweight rating and a $168.00 price target on August 16. The firm expects Snowflake Inc. (NYSE:SNOW) to surpass market expectations in its upcoming earnings report, driven by strong bookings and conservative growth estimates. New products like Cortex, Dynamic Tables, and Container Services are anticipated to boost growth. Additionally, Snowflake Inc. (NYSE:SNOW) user-friendly platform, diverse product offerings, and independence from major cloud services are seen as significant advantages. High demand for its new services, particularly in AI and data management, further supports a positive outlook for the company’s growth.
Snowflake Inc. (NYSE:SNOW) margins are stable, and its focus on the expanding AI market positions it for future gains. With its current valuation much lower than its peak, Snowflake Inc. (NYSE:SNOW) presents a compelling opportunity, especially as interest rates decline and investors look for high-growth tech stocks.
ClearBridge Multi Cap Growth Strategy made the following comment about Snowflake Inc. (NYSE:SNOW) in its Q2 2023 investor letter:
“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology.
Snowflake Inc. (NYSE:SNOW), a cloud-based data platform company, is positioned well to help enterprises better leverage their own data to get the most out of AI models. Though it is still early days in terms of adoption, Snowflake saw workloads for data science, machine learning, and AI use cases grow more than 90% year-over-year in its most recent quarter.”
Overall SNOW ranks 1st on our list of the best big data stocks to buy now. While we acknowledge the potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
