The US-based cloud data company reported 3Q earnings after the market on Wednesday, which was important on several fronts. The company beat expectations and rallied strongly as a consequence – Analysts at Citi described it as the best performance in six quarters! However, the trends in SNOW are also important elsewhere because Snowflake has a different revenue model, whereby their thousands of customers worldwide range from startups to large multinationals (Microsoft, Adobe, etc.), paying on a consumption basis. Consumption had slowed, which the market was concerned with, and that weighed on their shares (and others); however, volumes have kicked back in, and their guidance for the 4Q was solid.
- A higher-risk cloud-based data company exposed to the massive rise in AI, held in the International Equities Portfolio.
MM is long and bullish SNOW US
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