Since its IPO, Snowflake (NYSE:SNOW) stock rallied to $429 before crashing below $200. Its IPO made it a blockbuster unicorn stock for 2020, but is it a buy in 2021?
Snowflake offers a cloud-based data storage and analytics service, generally termed "data warehouse-as-a-service". It allows corporate users to store and analyze data using cloud-based hardware and software. Snowflake is technically not a Software-As-A-Service (SaaS) stock. 93% of its revenue is consumption-based. Snowflake provides a data warehouse-as-a-service or database-as-a-service (DaaS) that claims to dramatically simplify concurrency, performance, and overhead challenges, offering both reduced cost and improved agility.
It doesn't hurt that Snowflake is a Berkshire Hathaway-backed company. It works with Apple, Nike, Mastercard, Datadog, Walgreens, and many others. It has 75+ large, strategic accounts working toward migration and has been adding Fortune 500 customers at a rapid clip.
Can Snowflake stock help boost your stock market portfolio gains?