Taken from a research report:
Snowflake has become a full-fledged data platform in the cloud with data warehousing, databasing and machine learning capabilities. Pricing is based on usage so as customers grow, their data grows, and their machine learning workloads grow, Snowflake’s revenues will continue to grow. The company has a strong market position with more than 25% of companies out of the Forbes Global 2000 list already on their platform. As the capability for customers to share access to data with partnering companies is natively built-in, there is an incentive for others in their supply chains to move onto the platform as well. This creates a highly attractive network effect. The shares are now starting to be attractively valued, after a rather exuberant IPO and subsequent covid tech bubble. Taking reasonable assumptions, I can now model out an 18% IRR over the coming five years resulting in a target price of above $310 by the start of ‘28.
Submitted May 02, 2023 at 07:25AM by Emotional_Media_8278 https://ift.tt/Hz0s5fU
