Summary Snowflake and Palantir are two of the leading software companies offering generative AI solutions to enterprises. Both companies have strong offerings-although most of what is being offered by Snowflake is just now generally available. Investors are very concerned about Snowflake’s competitive positioning, particularly vis-a-vis Databricks, still a private company. We believe that many investor…
Purchase of 60 shares of Snowflake; Sale of 150 shares of Nutanix We added 50 shares of Snowflake (SNOW) to our high growth portfolio today. We previously had 270 shares and we now have 330 shares. At the current price, a 330 share position is a weighting of about 5%. Snowflake shares, after spiking positively…
Snowflake reported its Q1-FY 2025 results on the afternoon of May 22. Simply put, the operating results for the quarter were significantly above prior expectations. Most analysts have raised their price targets by between 15%-25%. I wouldn’t be surprised to see some upgrades. That said, the shares are up by around 5% premarket. The reason…
As foreshadowed in our recent note on Snowflake, we added 70 shares of Snowflake to our position; we now have a position of 270 shares, which is a weighting of about 4.5%. The investment case for Snowflake was embodied in the note just sent to subscribers. The purchase cost $10,705. We sold 100 shares of Nutanix,…
Summary Snowflake’s recent guidance for 22% revenue growth has disappointed investors and caused a decline in share price. The company’s new CEO, Sridar Ramaswamy, is seen as the right leader to address challenges and drive growth. Snowflake’s AI initiative, Cortex, and other new products have the potential to significantly impact revenue and profit projections. Snowflake…
Snowflake shares are down by about 20% as we write this on Thursday morning. The share price implosion is based on product revenue guidance of 22%; prior expectations had been for revenue growth of more than 30%. Offsetting this guidance to some degree was an entirely unexpected growth of 41% in bookings compared to the…
Summary The best strategy to invest in the AI revolution is to focus on the pick and shovel vendors in the space. These companies serve as toll takers on the road to the deployment of AI based applications. AI needs lots of storage and thus we recommend shares of Pure. AI needs unified storage/compute and…
Summary Snowflake’s recent earnings report beat expectations, but guidance reflected continued pressures on consumption/revenue growth. Snowflake’s management believes there will be a growth inflection starting in early 2024, which is not resonating with some traders and analysts. The company’s leaders emphasized the importance of data strategy and its role in facilitating the deployment of AI,…
There were several enterprise IT vendors that reported Tuesday evening. None of them could match the fireworks set off by the fantastic Nvidia quarter, but there were some pretty decent results. Splunk and Autodesk both achieved decent upsides compared to prior expectations and were able to forecast higher as well. I imagine most Ticker Target…
As we had suggested, we started to sell some of our Doximity position to redeploy funds into more favorable situations. We were hoping for some kind of dead cat bounce but so far that hasn’t happened. We sold a little more than half of the position, i.e. 490 shares at a price of $22.39. This…