Is Snowflake a Buy After Earnings?
Snowflake (NYSE: SNOW) has been a hot stock since its initial public offering (IPO) in 2020, fetching a steep valuation for its stellar growth and high-profile backers, including Warren Buffett himself. Until recently, the stock's been reluctant to come off much from its rich valuation.
But after the company reported its earnings for the fiscal year (ended Jan. 31), investors reacted negatively to the news, selling the stock to within shouting distance of its all-time lows. Should investors buy the dip, or is Snowflake just beginning to melt? Here's what you need to know.
The data infrastructure company put up some excellent numbers on the surface. Revenue grew 101% year over year in the latest quarter to $384 million and by 106% for the full fiscal year to $1.2 billion. Management also announced that it had $2.6 billion in "performance obligations" -- that is, business under contract that will be counted as revenue once it renders those services.
Source Fool.com
