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Snowflake On The Path To $10B In Product Revenue

Aug. 30, 2021 6:12 PM ETSnowflake Inc. (SNOW)9 Comments
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  • Snowflake has a goal of producing $10 billion in product revenue by fiscal 2029 (calendar year 2028).
  • Management believes the way for investors to track their path to $10B is to monitor million-dollar plus customers, which should be a significant portion of product revenue.
  • The company is pioneering a new market which they call the Data Cloud, which has the potential of becoming the core infrastructure to the digital economy.
  • Snowflake has a significant runway to grow into its valuation and be a market-beating investment over the next +5 years.

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The first thing many investors notice when they look at Snowflake (NYSE: NYSE:SNOW) is that it is one of the most highly valued stocks in the market and that valuation makes some investors want to

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I have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The Motley Fool. Also because I have a engineering background, I often tend to gravitate to Tech stocks

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (9)

Thank you for the article. I was aware of the company but had never really taken a look. Time to do a little more digging here. The potential for a paradigm shift appears to be quite significant.
I'm confused. You're paying 90B now for a revenue of 10B in 8 years?

Sounds like this is for investors with a very low required rate of return
@Diogo Franco thank you. This is the elephant in the room. And valaution is closer to $100B. So you are paying a $100B valaution for company that “might” hit only $10B in revenue in 8x years!!! Is the market high??? What am I missing here???
Thx for your article on SNOW. It is an outstanding growth company that is growing as fast or faster than any other software/ tech company of its size. Due ti its high P/S valuation, it would be a lot more attractive if it dropped 15-20% from current levels near $300. One hypergrowth stock that recently dropped from $329 to $160 (is now in low $180's) is FVRR. PLTR dropped from $42 to $18 recently (is now $25), so SNOW could drop before rallying strongly. All 3 are great growth companies and are good buys when they drop.
@drbob512 it was at $190 two months ago..
02 Sep. 2021
@drbob512 FVRR is LinkedIn for freelancers. SNOW is the first cloud database in history. ~50 years ago, Oracle invented the on-premise database. What this company represents is the most revolutionary shift in one of the most important technological landscapes in the age of the Internet. Please don’t just look at numbers, but rather look at the business, the company, and leadership. This is the Buffett Model, and no wonder he and BH are heavily invested.
Thru $400
So what's your target price??
02 Sep. 2021
@unan2010 $750 by 2027. Assuming no splits.
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