Less than a month after Snowflake debuted on the stock market with the biggest software IPO in history, Wall Street analysts are rushing to make predictions on the cloud database company, which is already valued at over $67 billion.
At least 19 analysts initiated coverage of Snowflake on Monday following the post-IPO quiet period, according to reports collected by CNBC.
Among the nine buy ratings, the most bullish prediction came from Truist, which gave Snowflake a price target of $350, or 47%
Snowflake(NYSE:SNOW), a cloud data company, has received a lot of attention from investors lately, following its mid-September IPO. Investors have taken an interest in this tech stock because of its 133% revenue growth in the first half of this year, and the fact that the company believes it has a massive $81 billion total addressable market in the cloud data space.
But despite Snowflake’s potential, there are a handful of other tech stocks that could be better long-term investments. To help you find a few, we asked three Motley Fool contributors for alternative Snowflake investments. They came back with Alteryx(NYSE:AYX), Zoom Video Communications(NASDAQ:ZM), and Amazon.com(NASDAQ:AMZN). Here’s why.
Image source: Getty Images.
With access to more data than ever, businesses need a way to make sense of it
Brian Withers (Alteryx): Snowflake’s platform excels in capturing enterprise data and centralizing it in one
Snowflake (SNOW) – Get Report shares fell after Jefferies analyst Brent Thill initiated coverage of the cloud-services company with a hold rating and $250 share-price target.
He likes the company but not its valuation — about 51 times his 2022 revenue estimate and 21 times his best-case 2023 estimate.
The San Mateo, Calif., company’s stock stands “ahead of its fundamentals,” Thill wrote in a commentary, according to Bloomberg.
Snowflake recently traded at $244.80, down 2.5%. It has more than doubled from its Sept. 15 IPO price of $120.
In addition to his concern about valuation, Thill noted that Snowflake faces intense competition in its field.
As for his overall bullishness, Thill likes Snowflake’s management team. It has a “proven track record of building from a base (today an $81 billion addressable market) to much larger total addressable markets over time.”
Last week, Summit Insights analyst Srini Nandury began
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Pandemic numbers are looking better, it’s still a couple months before U.S. elections and a growing line of tech companies have already ventured out into public markets successfully this summer. Hard to imagine conditions beating the present any time soon, whether you’re traditionally banked, going with a direct listing or getting inside a SPAC vehicle.
We covered the frenzy this week with an eye toward what other startups can learn about the way these companies have arrived at this point. Here are the headlines for each, from Asana to Unity.
But first, consider this special episode of our Equity podcast from Wednesday, where the team reviews the news. And for a faster(ish) read, Extra Crunch subscribers should also check out Alex Wilhelm’s “super-long roundup” of