Buffett Dumped Snowflake. Stock PLUNGES On Earnings. It All Comes Down to ONE Question

[@rayzong7]

It should be illegal for companies to use odd calendars …

[@moechatly6075]

I literally love you Brian. I want to send you a gift for your hard work.

[@Watdamarin]

Snow was never a Buffett style stock anyone who puts weight behind that shouldn’t invest in the company

[@darrenprior6339]

This appears to be a company where the more business they get, the more losses they accrue and the promise of profits is always in the future

[@BlizzardzRS]

I think a lot of these operating cost increases are short-term in nature. They don't need to refresh their GPUs every year, and future refreshes will be more cost-competitive as companies catch up to NVIDIA. SBC is high because they are trying to attract and retain AI talent. That's the right call if they want to release a "killer AI feature" that will take advantage of all the data they're storing for customers. SNOW is one of the few stocks with a clear path to integrating AI at the application layer. No brainer at these prices.

[@azulsimmons1040]

I could not understand the advantage companies like Snowflake and Palantir had over rivals, thus I have not invested. I have to understand the competitive advantage and see it in in the earnings before I want to buy a company.

[@karthikeyanboopathy2933]

Valuable content! Love the format and the level of details covered

[@hibbeac1]

Personally I feel that Snowflake has a moat, whilst I've seen others say it is a data warehouse, I'd say it's more about sharing and monetizing data for Snowflakes customers as opposed to a data warehouse in the cloud. I don't know of another company doing that, purely data warehouse though there are a lot of competitors

[@wmas296]

Outstanding analysis! 🙏 very valuable information

[@77magicbus]

Why invest in companies that are losing money? There are plenty of companies who are making money.

[@Allen-L-Canada]

agree, look for companies with consistent up trend of profit and FCF

[@pornstarpat]

​@@Allen-L-Canadachange FCF to net income and you got a deal!!! I feel FCF can be manipulated.

[@KenjiEspresso]

I agree, but they still have customers and their numbers are growing still…so…

[@geolykos]

You play the odds. Because it’s promising, when this turns around the returns will be massive.

[@samueljflesch9791]

Its all about price perception but, I guess it starts to become an easy buy @ $100 or there abouts because the risk/reward equation, gets way more skewed to the upside than to the down.

[@Allen-L-Canada]

the numbers on the graph are too small to see.

[@jankay8569]

Please zoom in for these. We dont have to see your face all the time

[@StockSpotlightPodcast]

Do they not do videos together anymore? Them deep diving into new companies was the best part of this channel

[@ahsanawan765]

I am Missing too

[@nik77039]

That's exactly how I feel about snow too... I was hoping for some evidence to sell or buy more, but this stock is difficult. Thanks for the video!!

[@andreasl33]

revenue retention of 127%. Given that 27% is their current growth rate (approximately), it means that they are no more increasing their number of customers.

[@MoneyMathai]

Thank you for this great analysis

[@theoand]

Does FCF include Stock Based Compensation? What metric should we use in companies that have heavy SBC to get a better feel of their balance sheet health?

[@StockSpotlightPodcast]

FCF per Share or SBC Adjusted FCF

[@labanlabansson]

FCF doesn't include SBC. However FCF per share would take the dilution (SBC) into account.

[@ronakshah725]

Warranted some mention of databricks

[@nicky_rads]

Snowflake at its core is a data warehouse. That is a very competitive space these days, granted Snowflake is a very good data warehouse, but the AI story is a stretch for them.

[@Allen-L-Canada]

the quetion is that what moat they do have to fend off the competitions? just being good and grow revenue fast are not enough for the long-run.

[@capitaldea]

I'd prefer to own a hyperscaler like Oracle. They have their customer basis and can expand on that.

[@DDSmohannad]

How does he have snowflake data filled on finchat while I’m always waiting a couple of days for it to fill in?

[@myromkahaner7336]

thank you !!

[@geolykos]

Great analysis. Thank you. I’m down 10% including today’s pullback but I think I’ll stick to it for now. I believe in Huang hyping it up.

[@amoghm4383]

i own it too but hard to justify a buy, i can see sub 100$ if S&P crashes hard

[@DarpanJain-ut1wn]

What is MOAT?

[@fahadgilani7817]

An advantage, like a moat around a castle preventing others from breaching it.

[@russc.6227]

I'm holding my 2% position for now. I'll keep a close eye on it. I'm curious to see what the new CEO, Sridhar Ramaswamy, brings to the table. His experience at Google could prove to be invaluable.

[@Steven83725]

Sorry for ur loss bro

[@lrm21]

Great analysis. Snowflake should be outperforming here, I've been interested in this company since the IPO, but at this point, the AI Cycle is 2 years old, and there is neglible impact in growth, the company doesnt seem to have Pivoted since slotman left, they have no good acquisitions, and Databricks, Azure and AWS are all gunning for them. The problably need a year or two to get their house in order, but where will the AI cycle be by then.

[@princediesel1]

I’m buying , price follows the news, I have patience

[@rayzong7]

Question: if snowflake has customers on long term contracts, can snowflake simply jack up the price?

[@chaotan046]

If you can’t get a YES, why don’t admit it’s a NO?

[@loganlasvegas]

Headline numbers looked good but stock got hit again AH. So thank you for providing the context and insights behind the numbers.

[@abidingdude222]

BUY BUY BUY

[@Raistlin7070]

Whats going on is this company is unable to innovate and will be left in the dust in the AI revolution. This has nothing to do with how much money they are making today. Valuations based on todays figures are how you value mature companies in mature spaces.

[@kennethmeacham6368]

One of Snowflakes competitors (some would argue this) is Databricks. And after using both as a Senior Data Engineer, my prediction is Databricks is fixing to run away with market share. Many of the people I see advocating for Snowflake over Databricks have ties to Snowflakes success. But this is a n=1 and other in my industry have agreed. We'll see!

[@neerajgene]

yeah certainly a mixed bag and this CEO is going to be in the hot seat over the next 12-18 months. Really miss frank at the helm but hopefully the AI products can widen the moat. The growing competition certainly doesn't help. Maybe Buffet knows a few extra bits of information, which is why he parted ways with his holdings.

[@cesare4926]

Company's are going to go bankrupt just to buy NVDA shitty GPU's that make no money lol

[@weho_brian]

Snowflake has disappointed me too many times! Its still "cheap" enough to hold at these levels

[@jankay8569]

Cheap 😂😂😂

[@KK-pm7ud]

Snowflake fell into the moat

[@jankay8569]

Well done

[@ASenseofCapital]

I don't think everything is about moat and to tell you the truth, especially tech companies are extremly difficult to evaluate in this regard because most of the time, they don't communicate much sector/product specific details and if they do, those details are difficult to understand for non-specialists like us. In my opinion, that was never different with SNOWFLAKE but what has changed are the non-sector/product specific numbers are not justifying anymore the stock price and these are the numbers you set primarily a focus on. So, from my perspective the harsh truth: As an external non-specialist, it is simply not possible to asses a company like SNOWFLAKE on a reliable valid scale and that is what investors will figure out right now, who are not able to make their homework right. Anyway, this doesn't mean that SNOWFLAKE is a bad investment, it's just result in additional risks due limitations while covering the evaluation process.