Warren Buffett and Hedge Funds Are Crazy About These 10 Stocks

8. Snowflake Inc (NYSE:SNOW)

Berkshire Hathaway’s Stake Value: $989.86 Million

Number of Hedge Fund Investors: 73

Warren Buffett and hedge funds are crazy about Snowflake Inc (NYSE:SNOW) as it offers exposure in the burgeoning cloud computing sector as a technology investment. The company provides a data cloud that enables customers to consolidate data into a single source. Snowflake Inc (NYSE:SNOW) has also emerged as an artificial intelligence investment play as it increasingly integrates technology to solve business problems.

 In 2023, Snowflake Inc (NYSE:SNOW) gained more than 50% in market value, affirming its edge as one of hedge funds’ top investment plays in the tech sector. While the company’s revenue growth rate has slowed recently, it remains positive for free cash flow as it continues adding more customers to its portfolio. Its revenue retention rate also remains at a high of 130%.

Following an analysis of the over 900 hedge funds tracked by Insider Monkey, 73 held stakes in Snowflake Inc (NYSE:SNOW) as of the end of the first quarter of 2024.

In the investor letter for the first quarter of 2024, Alger Focus Equity Fund shared its insights on Snowflake Inc. (NYSE:SNOW), discussing the company’s recent activities and performance:

“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.”