I work in the data management industry. From what I see, most migrations to Snowflake are still in early days. I am confident their pipeline is very robust.
how are we feeling now as it keeps dropping? I'm letting my emotions get to me haha. Was up big just a week ago and now questioning if it's a long term hold
@@aaron22bernards why does price action determine how you feel about the fundamentals of a company? Such a strange psychology to me. Maybe you should stick to dca'ing an index fund
Snowflake will be fine, I see this as a buying opportunity. Its cloud software is unique and I think it will benefit from interest rates going down. I also think sales will triple by 2030
Times are changing. SNOW, specializes in "structured data storage", like database data. With the appearance of AI, there is demand for unstructured data storage". This includes documents, photos, videos, etc. Therefore, companies have been turning to DataBricks. I hope this helps.
@@MinjieXu Yes, that is the general consensus. DataBricks is stronger in unstructured data, and SnowFlake is stronger in structured data. However, there will always be demand for structured data. Cheers, Sung
An excellent explanation. There's just one point I'm not sure about. Maybe hiring more staff means management are optimistic, but there's a tendency for tech companies to bloat. From Business Today, "Musk claims that there were 'just under 8,000' staff members when he bought the company. Now, Twitter is left with around 1,500 employees". X still functions. Maybe the bloat wasn't the whole 82.5% implied by those figures, and maybe there are some ways in which X is worse because of the employee reduction, but that's still a massive reduction and the platform still basically works. That's just to say that a tech company can have a huge amount of bloat, it doesn't mean that SNOW has to be the same, I just have some doubt about SNOW hiring being a good sign.
I made a bull put spread on Snowflake this morning as soon as markets opened. It's currently 17% of max profit. On Monday, after IV drops, I'll lock in my profits.
Databricks is still a private company so we don't know how much market share they are taking and how much they are growing every quarter compared to Snowflake.
Me watching my SNOW plunge yesterday "I can't wait to hear what the Brian's have to say". I also added a handful of shares at 173... I will add more if it goes down to the 150s
Any which way you spin this, it just seems like all the metrics to justify the stock price drop says it’s extreme valuation even at $180 after hour price. We saw what happen in 2022 and when stocks are at extreme stock prices, the prices can drop 80-90%. The company says it is growing next year at 22% but you say it will grow 21% every year for the next 10 years makes no sense. If the company was growing at 100% now and 10 years later it grows on 21%, I can justify that, not at 22% growth with extreme valuations
I work in the data management industry. From what I see, most migrations to Snowflake are still in early days. I am confident their pipeline is very robust.
Agreed
how are we feeling now as it keeps dropping? I'm letting my emotions get to me haha. Was up big just a week ago and now questioning if it's a long term hold
@@aaron22bernards why does price action determine how you feel about the fundamentals of a company? Such a strange psychology to me. Maybe you should stick to dca'ing an index fund
Snowflake will be fine, I see this as a buying opportunity. Its cloud software is unique and I think it will benefit from interest rates going down. I also think sales will triple by 2030
Why anyone thinks Snowflake is an AI company? 😎
you still need data and you still need to analyze data. They are utilizing AI to write/auto generate the SQL for you
It is an AI company. 😎
The new CEO was previously in charge of their AI strategy
Every company is an AI company nowadays 😂😂
@@brandonderrick006mot
Times are changing. SNOW, specializes in "structured data storage", like database data. With the appearance of AI, there is demand for unstructured data storage".
This includes documents, photos, videos, etc.
Therefore, companies have been turning to DataBricks. I hope this helps.
Hi @onesung: are you saying DataBricks is much stronger on the unstructured data storage? Sorry I am fairly new to the storage 🙂
@@MinjieXu Yes, that is the general consensus. DataBricks is stronger in unstructured data, and SnowFlake is stronger in structured data.
However, there will always be demand for structured data.
Cheers,
Sung
I love the analysis after earnings, super crystal clear after seeing your video! thanks a lot!
The big issue with the SNOW are stock-based compensations.
Those eat all the profits, and take away from the shareholders.
That's a fair concern
You had really did a great job explaining SNOW stock. THankyou
You're welcome
Excellent analysis, Brian!
I'm new to the channel and loving the sythesis / insight. Thanks
Excellent video, I really love your in depth analysis. I learn a lot from you two
Thanks
Thanks Brian💯
I made bank on this, traded out before the landmine
Thanks Brian. Brilliant analysis as always.
You're welcome
Can we buy snowflake now?
Amazing analysis! Thanks!
Love your work!
An excellent explanation. There's just one point I'm not sure about. Maybe hiring more staff means management are optimistic, but there's a tendency for tech companies to bloat. From Business Today, "Musk claims that there were 'just under 8,000' staff members when he bought the company. Now, Twitter is left with around 1,500 employees". X still functions. Maybe the bloat wasn't the whole 82.5% implied by those figures, and maybe there are some ways in which X is worse because of the employee reduction, but that's still a massive reduction and the platform still basically works. That's just to say that a tech company can have a huge amount of bloat, it doesn't mean that SNOW has to be the same, I just have some doubt about SNOW hiring being a good sign.
That could be. But SNOW has been very prudent about these things
@@stoffelbrian Good, and thanks. Any chance you can explain how you know?
Been following the company for years
So assuming insane growth, ignoring huge dilution - it has market matching return 🤔
I made a bull put spread on Snowflake this morning as soon as markets opened. It's currently 17% of max profit. On Monday, after IV drops, I'll lock in my profits.
Not a great earnings season for you Brian. I’m with you on SNOW and MELI. Held them both over 4 yrs and still holding. 😃
Eh, AXON, NET, and AMZN were pretty awesome. But yes, some big drop downs as well
@@stoffelbrianjust kidding. Nice analysis. Actually a pretty good season with AMZN, MSFT, META and NVDA. Adding to SNOW and holding long term.
153 today
220 analysts estimates
When are you planning an update ?
Great video Brian, Twitter told me Databricks was eating their lunch and the company sucks. Will be adding to my position
Databricks is still a private company so we don't know how much market share they are taking and how much they are growing every quarter compared to Snowflake.
Me watching my SNOW plunge yesterday "I can't wait to hear what the Brian's have to say". I also added a handful of shares at 173... I will add more if it goes down to the 150s
Nope just Palantir taking their business
Great video!
Thanks
ez stock adding small amount today
Wouldn’t you only use Reverse DCF on a Gaap profitable company? Seems like before then, you might look at EV/Sales
2B Revenue over 50B market cap...oh yes...very cheap lol
You pretty much layed it out. Its down because its expensive!
These stock prices imply no recession for 10 years as well
Ah yes stock prices imply recessions.... XD
When you do the DCF, if there is a recession, you're going to expect some years with lower growth@@UziGameGP
Another India CEO from Google?
Top companies CEOS' are Indians... If all the Indians go back to India, India will be super power by 2075..
It’s the new way
Jewish america loves indians
Nepotism is rempant amongst the indians
5 tickets for 5 dollars...haven't been to a fair in a while, huh?
I live in Costa Rica 😁
@@stoffelbrian that slipped my mind. Good for you! German greetings from Kuala Lumpur ;)
Any which way you spin this, it just seems like all the metrics to justify the stock price drop says it’s extreme valuation even at $180 after hour price. We saw what happen in 2022 and when stocks are at extreme stock prices, the prices can drop 80-90%. The company says it is growing next year at 22% but you say it will grow 21% every year for the next 10 years makes no sense. If the company was growing at 100% now and 10 years later it grows on 21%, I can justify that, not at 22% growth with extreme valuations
then sell
I believe it will grow FAR faster than 22% in the next year
snowflake isn't an AI company 🤣🤣🤣🤣🤣
Too much competition against AWS, Azure and GCP. I have no idea why Warren Buffett bought this.
He didn t...one of his colleagues did. Also they bought before IPO
@@tdan89 I have a feeling he might not be working there anymore
Snow doesnt compete with those, rather integrates and works together
SNOW is build on these cloud providers infrastructure, you have totally no qlue wat you’re talking about
@@spleenfulOur company just left Snowflake for GCP
calm down with your exaggerated titles!!! AI BUBBLE POP