Is Snowflake Stock a Buy Now?
Since going public in 2020, enterprise-data company Snowflake (NYSE: SNOW) experienced revenue growth at a level that few businesses ever have. And that's a great thing, considering revenue growth is one of the most important things for investors to look for when buying a stock.
Investment company Boston Consulting Group (BCG) published a study in 2006, looking at what makes a stock go up. The study found that revenue growth doesn't guarantee good stock performance -- indeed, many high-growth companies fail to beat the market. However, among the best stocks over a 10-year period, most of the best performers outperformed thanks to growth.
Therefore, there's strong evidence that revenue growth is an important factor for investors to consider. And Snowflake has growth in spades. Since going public just three years ago, its trailing 12-month revenue is up a mind-boggling 500%, as the chart below shows.
Source Fool.com
