Warren Buffett Trusts in These 5 Stocks Despite Losses

2. Snowflake Inc. (NYSE:SNOW)

Berkshire Hathaway’s Stake Value: $851.79 million

YTD Percentage Decline in Share Price as of August 21: 54.25%

Number of Hedge Fund Holders: 81

Snowflake Inc. (NYSE:SNOW) is a cloud computing data company. Warren Buffett’s Berkshire Hathaway owns 6.12 million shares of Snowflake Inc. (NYSE:SNOW) as of Q2, worth about $852 million. Despite a 54% year-to-date drop, billionaire Warren Buffett has not lost trust in Snowflake, Inc. (NYSE:SNOW).

Barclays analyst Raimo Lenschow raised the price target on Snowflake Inc. (NYSE:SNOW) to $210 from $158 and kept an ‘Overweight’ rating on the shares. According to the analyst, investors are likely searching for confidence that the company’s consumption model will remain strong in a more challenging spend environment and he expects “another quarter of elevated volatility post earnings.”

At the end of Q2 2022, 65 hedge funds were long Snowflake Inc. (NYSE:SNOW), holding stakes worth $5.12 billion in the company. This is compared to 81 positions in the previous quarter with stakes worth $9.73 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 had 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.”