Snowflake Grows 29% in 2024, AI Push Could Drive Future Gains

Snowflake, a data platform company, reported its fiscal year results, with sales growing 29% and free cash flow increasing 14%, resulting in a 24.5% FCF margin. The firm continues to expand primarily within large enterprise companies, as reflected in its 126% net retention rate—indicating that nearly all of its growth comes from existing customers. The number of customers spending over $1 million annually grew 26% to 580. Like many of the stocks we follow, Snowflake is aggressively investing in AI-driven solutions, launching its "Cortex AI" technology to help customers build data agents. Data analysis and comprehension are strong use cases for AI, and I believe these efforts could significantly impact Snowflake’s growth. This has always been a business I like, but it has rarely been priced attractively. That remains the case today, with the stock trading well above my $140 price target.

Watch List

WDAY -14.66%
VEEV 10.18%
INTU 12.14%
PSTG -9.24%
CMG 30.19%
RDDT -3.84%
NTNX 14.13%
CRWD 71.52%
SE 19.77%
SNOW 2.45%
APPF 3.69%
PINS -38.39%

Buy List

ASML -27.09%
SEMR -42.13%
TSM -45.61%
ZETA -36.33%
GOOG -52.81%
NYAX -34.93%
MSFT -33.01%
ODD -33.41%
ASR -30.64%
FLYW -42.71%
HRMY -61.01%
GLBE -29.48%
YOU -34.88%
ABNB -36.69%
MELI -27.66%
ADBE -45.75%

Hold List

VTEX -20.00%
CELH 48.96%
TOST 14.30%
CPNG -19.28%
HIMS -22.20%
PAYC -21.97%
MNDY 6.61%
ZS 23.37%
V -8.70%
ADSK -3.90%
NOW -6.74%
FTNT -5.75%
TEAM -11.07%