the yield on bonds have decreased especially on the long end (30 and 10 Y) indicating that the demand is still there even if the supply remains huge showing a preference for safety. I'm still at a crossroad regarding whether or not to liquidate my $138k
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
In our organization, we use Snowflake. From my perspective, Snowflake reduces the learning curve for developers and architects, making it attractive for organizations to deploy their data on this platform. Not only does Snowflake democratize data, but it also democratizes AI. Snowflake consistently updates with technological advancements such as LLM, ChatGPT, and chatbots. Additionally, they make strategic acquisitions in the market. Recently, Snowflake introduced the Cortex service. With Cortex, we can utilize LLM functions, ML functions, and build chatbots using our data, including document search capabilities.
I think snowflake is a great product overall. I love that it can connect with any cloud providers. However the competition is fierce and I'm not 100% sure they have an edge.
The reason Warren is investing in snowflake is switching cost and data connection. Customers are hard to move out when they put their company's datas in snowflake due to switching cost. Further, snowflake will win the data connection and sharing when the size of customers get bigger just like Facebook. I don't think current AI deployment behind databrick is a problem, this disadvantage is able to be caught up.
I work as a consultant for Data Analysis and BI Solutions. A persistent trend is to have a multi cloud strategy for different and specific workloads. Snowflakes offering fits perfectly into that landscape. I can see how Snowflake allows companies to develop their own AI applications for internal use (improved productivity) or for customers (CRM or Services).
Daniel, I believe your base-case P/E multiples need to be higher. Tech companies with high margins growing at 20%+/yr deserve at least a 40+ PE, in Snowflake's case a fair base case PE might even be closer to 50. My base case PE mutliples are usually about 2x yearly revenue growth when valuing companies. Revenue growth is a key factor when applying PE multiples.
200% on what time scale? If you are talking about 10 years then you are not much better than investing in sp500 mutual fund, with substantially higher risk
What I don't like about snowflake, apart from the insane valuation, is that they don't have their own cloud infrastructure, it all sits on AWS,. azure, just feels like a risk to me and surely must limit their gross profit potential. Happy to hear other view points.
Hey danial, Sridhar Ramaswamy become CEO in February this year and just after a month, on march 27th he bought 5million$ worth of shares, this seems like insider buying stock market publicity stunt.
Made this one 4% of holdings at $163 ish. Held back 1/3 in case it drops to $150. I love your videos and long time subscriber who’s made money on your recommendations. I share your cautious approach when it comes to margins and revenue projections. Your earnings multiples are crazy low usually for business growing faster than the index average.
It's crazy to make a swing trade based on a few sentences made by the CFO and assume they are sandbagging. Exceeding forecasts is non-trivial and a lot of things can go wrong to prevent this.
I think there free cash flow margins should be more like 25 to 35% not operating margins as modeled. And that seems to be more what they would trade at, look at Adobe, crm, or now. IMO and not based off a PE multiple.
CEO did not buy! It is a granted RSU and it is vested over the coming years. Look at any company that gets a new CXO - more often that not they are granted RSUs as part of their comp, vested over the years.
You just got to love a great trader with zero hype! none of that back it up and load the boat stuff just to get likes, Snow is not for me, super high valuation and negative eps, Great video. Thank you
This is a show me stock now until they can get back to growth like the Meta. There's no visibility of growth. rather miss 10% upside rather another 30% downside from here.
the yield on bonds have decreased especially on the long end (30 and 10 Y) indicating that the demand is still there even if the supply remains huge showing a preference for safety. I'm still at a crossroad regarding whether or not to liquidate my $138k
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
Please will you be kind enough to share the details of the man that helped you?
Actually its a Lady. Yes my go to person is a 'MARY KALIOPE BRAUN'. So easy and compassionate Lady. You should take a look at her work.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
In our organization, we use Snowflake. From my perspective, Snowflake reduces the learning curve for developers and architects, making it attractive for organizations to deploy their data on this platform. Not only does Snowflake democratize data, but it also democratizes AI. Snowflake consistently updates with technological advancements such as LLM, ChatGPT, and chatbots. Additionally, they make strategic acquisitions in the market. Recently, Snowflake introduced the Cortex service. With Cortex, we can utilize LLM functions, ML functions, and build chatbots using our data, including document search capabilities.
Really helpful context. Thank you for sharing 😁
I think snowflake is a great product overall. I love that it can connect with any cloud providers.
However the competition is fierce and I'm not 100% sure they have an edge.
Great analysis! Yet, I stick to Buffett’s rule: ”Don’t invest in what you don’t understand”. Snowflake, despite its potential, remains a puzzle to me.
Same for me + it was and very likely will always be out of my valuation scope.
"Hey, maybe its time to buy this company. No, actually it's not." David, every time 😢
Thanks for watching. First, it's Daniel. Second, you must have missed this: th-cam.com/video/nsxGizwLTd8/w-d-xo.html
@@unrivaled David 🤣
You nailed it. David :) keeps all his buys within his private group.
@@unrivaled Sorry Daniel, no malice intended. I watch all your videos.
Could’ve had Draft Kings at $13
The reason Warren is investing in snowflake is switching cost and data connection. Customers are hard to move out when they put their company's datas in snowflake due to switching cost. Further, snowflake will win the data connection and sharing when the size of customers get bigger just like Facebook. I don't think current AI deployment behind databrick is a problem, this disadvantage is able to be caught up.
Insiders sold almost 1.7m during this same period.
That's not very much for a $40B company though.
I work as a consultant for Data Analysis and BI Solutions. A persistent trend is to have a multi cloud strategy for different and specific workloads. Snowflakes offering fits perfectly into that landscape. I can see how Snowflake allows companies to develop their own AI applications for internal use (improved productivity) or for customers (CRM or Services).
Daniel, I believe your base-case P/E multiples need to be higher. Tech companies with high margins growing at 20%+/yr deserve at least a 40+ PE, in Snowflake's case a fair base case PE might even be closer to 50. My base case PE mutliples are usually about 2x yearly revenue growth when valuing companies. Revenue growth is a key factor when applying PE multiples.
He's required to buy $5M of stock to get his $5M RSU grant. Not quite the signal you are imagining.
Source?
@@ankitrko7 www.sec.gov/Archives/edgar/data/1640147/000164014724000033/exhibit101-confirmatoryoff.htm
How does this work? RSUs are usually granted based on the employee staying in the company for a certain period of time.
Daniel can you do a video on how it was like to work on Wall Street and why you left
Good idea! Until then there's this personal video: th-cam.com/video/ioH0QWJvda4/w-d-xo.html
I appreciate you sharing this! 💎
200% on what time scale? If you are talking about 10 years then you are not much better than investing in sp500 mutual fund, with substantially higher risk
What I don't like about snowflake, apart from the insane valuation, is that they don't have their own cloud infrastructure, it all sits on AWS,. azure, just feels like a risk to me and surely must limit their gross profit potential. Happy to hear other view points.
AWS did all the heavy lifting, now its time for the next iteration of companies to rise up. I’m guessing Amazon will attempt to buy SNOW
Hey danial, Sridhar Ramaswamy become CEO in February this year and just after a month, on march 27th he bought 5million$ worth of shares, this seems like insider buying stock market publicity stunt.
Made this one 4% of holdings at $163 ish. Held back 1/3 in case it drops to $150. I love your videos and long time subscriber who’s made money on your recommendations. I share your cautious approach when it comes to margins and revenue projections. Your earnings multiples are crazy low usually for business growing faster than the index average.
Did you add?
Yes I added at $148. Now it’s 6%
Did this age well? 12-sep-2024 price is 112.
I just bought it @115+… I hope it will age well!!! 🙏🙏🙏🙏🙏
Added 10 more shares recently at $115 too. I think we will do fine. Expectations are very low
Thanks for the video. Very helpful. It would be great to get your take on Shift4.
I was going to buy it coz warren buffet bought it but after knowing some of the people I know working there, I immediately abort.
I work in data integration. Databricks IS eating their market share. Same thing, 3 times cheaper. Thats not to say SF cant succeed ofcourse.
Very helpful context!
This is how it has been for some time, isn't it?
I hear others saying SNOW is so much easier to use
Some businesses have the best business models and the most capable management Snowflake looks like one of these
Great video, I appreciated the multiple perspectives
I like both the investor and trader perspective. I agree with your risk reward assessment.
You always talk about the companies that you are not sure of - once in a while it will be nice to hear the other way
The most recent counter-example: th-cam.com/video/nsxGizwLTd8/w-d-xo.html
Lol😂
Its an interesting one with its constantly expanding gross margin, i can imagine it just turning on the money printer in a couple years time.
It's crazy to make a swing trade based on a few sentences made by the CFO and assume they are sandbagging. Exceeding forecasts is non-trivial and a lot of things can go wrong to prevent this.
Thanks for covering
What about all the insider and institutional selling?
Look at nvidia / tesla = people insid sell all the time.
I think there free cash flow margins should be more like 25 to 35% not operating margins as modeled. And that seems to be more what they would trade at, look at Adobe, crm, or now. IMO and not based off a PE multiple.
Great work, enjoyed the video.
CEO did not buy! It is a granted RSU and it is vested over the coming years. Look at any company that gets a new CXO - more often that not they are granted RSUs as part of their comp, vested over the years.
Paypal is one of the few tech companies that still present huge upside in today's market
I feel like every video ending not enough compelling upside
He s selling his course , of course he have a path full of compelling magical shrooms that will 10x in 5 years
They have too much fierce competition and there are many players out there with better price points and street does not beleive in them any more.
I’ll remind you about this comment in 2 years
You just got to love a great trader with zero hype! none of that back it up and load the boat stuff just to get likes, Snow is not for me, super high valuation and negative eps, Great video. Thank you
So I should sell my BA and buy SNOW
This is a show me stock now until they can get back to growth like the Meta. There's no visibility of growth. rather miss 10% upside rather another 30% downside from here.
Great video David 🎉
LOL. Thank you.
Still 25x rev
should the snowflake’s class action lawsuit be a concern?
Please elaborate. News to me..