Jim Cramer Reveals Top 10 Stocks to Watch

7. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Investors: 69

Snowflake Inc. (NYSE:SNOW) operates in the rapidly expanding cloud data warehousing and analytics sector. Its platform helps companies manage and analyze large volumes of data across various cloud environments. When a viewer asked about his thoughts on Snowflake Inc. (NYSE:SNOW),

“The latest feedback I’m getting about Snowflake is that they’re facing some difficulties and are being challenged by a couple of companies. It’s kind of a tough road for them right now. I think I’m going to hold off on recommending it.” Cramer said.

On a positive note, a major factor behind Snowflake Inc. (NYSE:SNOW)’s remarkable outlook is its high net revenue retention, which shows that existing customers are increasing their spending over time. Snowflake Inc. (NYSE:SNOW) is also growing its product lineup with new features for data sharing, application development, and AI/ML, which attract more customers and encourage them to stay.

Snowflake Inc. (NYSE:SNOW)’s partnerships with major cloud providers like AWS, Microsoft Azure, and Google Cloud strengthen its market position. As more companies move their data to the cloud, Snowflake Inc. (NYSE:SNOW) is well-positioned to benefit from this trend. Snowflake Inc. (NYSE:SNOW)’s strong financial health, including having no debt, gives it the flexibility to invest in growth opportunities.

Analysts are optimistic about Snowflake Inc. (NYSE:SNOW)’s future, pointing to its large market potential and the ongoing shift toward digital transformation as key drivers for the stock’s potential rise.

Alger Focus Equity Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q1 2024 investor letter:

“Snowflake Inc. (NYSE:SNOW) is a cloud-based data warehousing company that allows organizations to store, analyze and share data in a secure. scalable and cost-effective manner. This includes the Data Cloud. an ecosystem where Snowflake customers, partners. data providers, and data consumers can break down data silos and derive value from rapidly growing data sets in a secure, governed, and compliant way. Its platform supports a range of use cases. including data warehousing, data lakes, data engineering, data science, data application development, and data sharing. While the company reported an overall healthy fiscal fourth quarter. shares detracted from performance after management lowered their fiscal 2025 forward revenue guidance below analyst estimates. Further, the company announced that CEO Frank Slootman would be retiring from the role immediately, succeeded by Sridhar Ramaswamy, the former SVP of Al who has demonstrated impressive speed in bringing new Al products and features to market.”