Jim Cramer’s Game Plan: 17 Stocks in Focus

13. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 85

Cramer highlighted that Snowflake Inc. (NYSE:SNOW) has transformed into an advisor for companies looking to learn the usage of AI.

“Then there’s Snowflake, the rent-the-cloud play that’s become far more than that. Really it’s a real advisor to those who wanna learn more about how to use artificial intelligence in the business.”

Snowflake (NYSE:SNOW) offers a cloud-based data platform that helps organizations consolidate data, gain insights, build data-driven applications, and apply AI to address business challenges.

Baron Funds stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q3 2024 investor letter:

“Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform predominantly used for data analytics. Shares fell 15.2% in the third quarter due to a cybersecurity incident, a shifting competitive landscape, a change in leadership, and general macro complexities which are pressuring customer IT budgets. With generative AI (Gen AI) front and center, both investors and customers are closely evaluating Snowflake’s positioning in the future data ecosystem. Databricks and other competitors whose core users are data scientists who are also key buyers of Gen AI technologies, are benefiting. In addition, while Snowflake’s product innovation push should fuel future growth, it may also lead to short-term headwinds to profitability. Management reported healthy demand for its core data analytics, evidenced by solid growth rates among current customers alongside new go-to-market initiatives that could support growth. We are optimistic the new CEO, Sridhar Ramaswamy, can lead the company towards an AI-centric strategy, and therefore remain shareholders.”