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This Is Why Some Snowflake Investors Are Worried

By Jose Najarro - Jun 12, 2021 at 8:00AM

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The future revenue projections that management showed might be falling short of expectations.

In today's video, I look at fundamentals, valuation metrics, and recent news for Snowflake (SNOW 2.97%). On June 10, 2021, Snowflake released its investor presentation, and the company projects roughly $10 billion in revenue for its fiscal year (FY) 2029. Below I share a few highlights from the video.

  1. The future revenue projections might make some investors question the company's current valuation of $71 billion. It is important to note that so much can happen between now and Snowflake's FY 2029 that these projections can change in a matter of time and make the company look more or less attractive in price. 
  2. Snowflake's management believes that even by FY 2029, Snowflake will still be an impressive growth machine with roughly 30% year-over-year revenue growth and 15% in adjusted free cash flow margin. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of June 11, 2021. The video was published on June 11, 2021. 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Snowflake Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Snowflake Inc.
$165.53 (2.97%) $4.77

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