Let it $SNOW
Let's face it, $SNOW has been one of the most disappointing-performing stocks of the year. While $NVDA is riding the AI wave, and $MSTR is riding the BTC boom, $SNOW has been sitting here like a fat child eating cake and shitting himself in the process.
But this is all about to change, and let's discuss why:
- Winter is coming, and people will associate $SNOW with warm fuzzy feelings while drinking hot cocoa by the fireplace. This is inherently bullish.
- $SNOW has historically always beaten revenue estimates (bullish), and 88% of the time it beats EPS estimates. I expect this time to be no different (beat both revenue and EPS), however this is never enough to rally this stock (more below).
- $SNOW has been hiring like crazy. I know because I've applied twice so far and been rejected both times (smart choice on their part - bullish), which means they're being picky and likely receiving a lot of strong candidates to improve their offering (extra bullish). I've been keeping an eye on all open positions, along with how long they're open for, and new ones that pop up. Everything I've seen indicates a hiring frenzy to expand into more markets, take on new clients, etc.
- $SNOW tends to retain their customers and strengthen existing relationships. Just today they announced a stronger partnership with $MSFT by releasing a new platform to work with $MSFT Power Platform (bullish AF)
- In May, $SNOW appointed Sridhar Ramaswamy as the new CEO, who is expected to focus on enhancing the company's AI (bullish) product strategy.
- Going off the point above, the actual real-world numbers of customers using their AI product is genuinely exploding, and we all know how bullish AI is in today's market.
Q: Ok, but why is THIS time different than all the other earnings reports when $SNOW crashed and burned?
A: Like I said in Point 2 above, we Snowflakians always beat revenue and EPS predictions, but for some reason the stock always goes down. The reason behind this - as is the consensus of analysts - is that investors are cautious against how much money $SNOW is pouring into their products, R&D, and operating costs. This quarter we should start to actually see the results of these investments, returning strong usage statistics and a healthy increase in overall adoption from the industry.
Q: Ok, but what about, like, Databricks and stuff?
A: Databricks can suck my nuts (they also haven't hired me yet - I'm trying to get in before they go public for those sweet stock gainz)
My Positions (Screenshot below):
200 Shares $SNOW @ $127.95
10x 128C Exp 12/06/24 @ $8.36
5x 160C Exp 06/20/25 @ $10.47
This is not financial advice. Always inverse WSB.