As far as cloud computing stocks go, Snowflake (NYSE:SNOW) may not be one of the best-known, but it’s certainly hanging in there. Nevertheless, an upcoming event may help Snowflake convince investors that the growing threat posed by other cloud computing operations may not hit it so hard.
Word from Monness, Crespi, Hardt—via analyst Brian White—suggested that Snowflake’s event, if properly tailored, might be able to draw attention from the much larger firms that are taking aim at cloud operations and data warehousing. Several big names, ranging from Salesforce (NYSE:CRM) to Oracle (NYSE:ORCL) to even Google (NASDAQ:GOOG), are stepping into the space with some serious conferences. That’s likely to dilute the value of Snowflake and its operations, thus, it’s going to have to pull out all the stops for its own show. Snowflake will likely have its top brass talking about multiple use cases in a range of fields, which should help.
However, there’s one threat that Snowflake might not even see coming. While Snowflake is watching larger firms with cloud presences and generative AI—which is a smart move—there are some looking toward a tiny company called Databricks, which hasn’t even had its IPO yet. Databricks’ primary product is what’s known as a data lake, which collects data. Though it isn’t quite so easy to use as a data warehouse like the kind Snowflake operates, a data lake can more rapidly scale up since its primary purpose is data collection.
Is Snowflake a Buy, Sell, or Hold?
Snowflake, however, enjoys substantial analyst support. With 20 Buy ratings and five Holds, Snowflake stock is considered a Strong Buy. Further, with an average price target of $193.33, Snowflake stock also offers investors 26.04% upside potential.