Should you buy Snowflake stock? (December 2024)

Published first at https://www.3minutebreakdowns.com Snowflake stock analysis. Ticker: $SNOW Snowflake reported earnings last week and the stock jumped over 30% taking the company’s market value to 57.6 billion dollars. With 5 billion of cash on the balance sheet and 2.3 billion of debt, the enterprise value is just under 55 billion. Meanwhile, Snowflake has reported $3.4 billion of revenue over the past 12 months and 824 million of free cash flow. But net income is negative, largely due to a huge amount of stock based compensation. So Snowflake stock is valued at 16 times revenue and 67 times free cash flow. Large amounts of stock based compensation are not a problem so long as a company is growing and Snowflake is. Revenue in the latest quarter was up 29% to 900 million dollars. Remaining performance obligations grew 55% to $5.7 billion and the company increased its outlook for the rest of the year. Net revenue retention rate held steady at 127% and Snowflake’s collaboration with AWS has now led to almost 4 billion dollars of bookings. The company also announced a partnership with Anthropic. Overall, this was a much improved quarter from Snowflake and that fact did not go unnoticed by analysts on the company’s conference call. Analysts now expect Snowflake to grow 23% next year and 22% the year after. #investing #stocks #stockanalysis #snowflakestock