Snowflake Rises as Nasdaq-100 Falters in Tech Sell-Off
Snowflake stock has performed relatively well during the tech sell-off over the last month, rising by about 8% since early September, compared to the Nasdaq-100 which remains down by about 4% over the same period.
![BRAZIL - 2021/08/27: In this photo illustration the Snowflake logo seen displayed on a smartphone. ... [+] (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images](/uploaded_images/3abe7b29ffc84a98c649bc88e8fb218b_1665050464.jpg)
Snowflake's strong performance in the face of headwinds is a positive sign for the company's future prospects. Wall Street is largely positive on the stock, and most new coverage initiations come with a buy rating.
The markets are betting that Snowflake will quickly grow into its lofty valuation, given the company's large addressable market and expanding margins. Snowflake is well-positioned in the cloud-based warehousing market, with its product working across multiple platforms and offering more flexibility than its competitors. The company is targeting $10 billion in annual revenue by FY'29, and it could potentially fare even better given its strong recent execution and focus on new workloads such as cybersecurity.
Snowflake is a cloud-based data warehousing company that has seen incredible growth in recent years. We believe that the company is currently undervalued by the market, and our price target of $210 per share reflects this. Snowflake has a strong business model and is well-positioned to continue growing its revenues at a rapid pace. We believe that the stock is a good long-term investment at its current price.
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