United Investment Limited - Is Snowflake a Buy in the Face of Cloud and AI Growth Concerns?

Consider Snowflake stock to be an indicator for the expansion of cloud computing behemoths Amazon.com (AMZN), Microsoft (MSFT), and Alphabet's (GOOGL) Google.
CENTRAL, Hong Kong - Oct. 20, 2023 - PRLog -- One source that is worrying for SNOW stock has been a slowing in cloud computing growth.

Snowflake (SNOW) is a company that delivers data analytics and management software for cloud computing platforms. The organization is transforming into a cloud data management platform. After reversing earlier gains, SNOW stock is up only 9% in 2023. The Nasdaq composite is up 29% as a result of the excitement around generative AI.

Snowflake reduced its full-year fiscal 2024 projection after it released April-quarter earnings. Snowflake reduced their target for product sales growth to 34% to $2.6 billion from 44% to 45% before.

"Consumption challenges, while improving, are still weighing on expansion in the core data warehouse business," according to a recent analysis by Bank of America analyst Brad Sills. "Snowflake's unique consumption pricing model provides a key competitive advantage, though it also presents a higher degree of exposure to a still challenging IT spending environment."

In June, rival Databricks paid $1.3 billion for generative AI firm MosaicML. Databricks raised approximately $500 million in September at a $43 billion value. Nvidia (NVDA), one of the hottest AI stocks, was among the investors.

At United Investment (https://unitedinvest-hk.com), we understand that finding the right advisor can be a difficult task. United Investment's advisors are experts in identifying areas and opportunities that are perfectly aligned with their client's objectives.

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