For the first time since the company's September 2020 initial public offering, Snowflake Inc. shares offer an attractive valuation, according to Barclays.
For the first time since the company’s September 2020 initial public offering, Snowflake Inc. shares offer an attractive valuation, according to Barclays.
“The more providers that use Snowflake, either internally or to publish data sets on the data marketplace, the more value it drives for data consumers that want to leverage the data,” he wrote. “Because data is copied but not transferred, there are no associated storage costs for data consumers. For Snowflake, this means that it comes with a strong margin profile, as it drives additional compute, which is the higher-margin part of the business for Snowflake,” he wrote.
Lenschow said that he has always liked Snowflake for its “best-in-class retention rates,” but he felt the stock’s valuation had been full since its IPO. Now, with the valuation now “near all-time lows,” he is cheering an “attractive entry point for long-term investors.”