A tough session overnight for data business Snowflake (SNOW US), held in our International Equities Portfolio down 18% after announcing a mildly weaker outlook and the surprise departure of their CEO Frank Slootman – who’s incredibly well regarded. We think this surprise accounts for the majority of the decline and when combined with a slightly weaker-than-expected outlook, overlayed with the ~70% rally the stock has experienced since November, some selling is understandable.
- Q4 results were strong, with revenue up 33% to $738.1mn and around 2% ahead of consensus, however, they guided to $745-750mn in Q1 which was around 2.5% lower than expected.
The CEO’s departure is immediate, with Google’s recently departed top advertising exec Sridhar Ramaswamy taking the reins, a handy replacement. We own SNOW because AI relies on data, no data, no AI, and we remain confident that Snowflake will continue to grow its data business at high rates.
- We view the overnight pullback as a buying opportunity.
MM remains long & bullish SNOW US
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