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Snowflake Dips Below Its IPO Price: Is It Time to Buy or Sell?

The Motley Fool
Summary
Nutrition label

82% Informative

Cloud-based data warehousing company Snowflake 's revenue rose 29% year over year to $869 million .

CEO Frank Slootman's abrupt departure in February and Berkshire Hathaway 's exit cast even more dark clouds over its future.

Snowflake now trades slightly below its IPO price of $ 120 , but is it the right time to buy the stock?.

At $ 115 , Snowflake 's stock still looks pricey at 10 times this year 's sales.

It probably won't bottom out until its revenue growth, retention rates, and margins stabilize for a few consecutive quarters .

So for now, I think it's still smarter to avoid or sell Snowflake than to buy it.

VR Score

84

Informative language

84

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English

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34

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medium-lived

External references

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https://www.fool.com/terms/f/free-cash-flow/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=cb5db397-2ea4-4c87-8006-420e226a0548https://www.fool.com/author/2154/https://www.fool.com/investing/2024/08/21/3-red-flags-for-snowflakes-future/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=cb5db397-2ea4-4c87-8006-420e226a0548https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=5fa5e25c-bd21-42bc-b1d0-28d003237122&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26amp%253Bsource%3Disaeditxt0010895%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D13885&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=cb5db397-2ea4-4c87-8006-420e226a0548https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=5fa5e25c-bd21-42bc-b1d0-28d003237122&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010895%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D13885%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DSnowflake&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=cb5db397-2ea4-4c87-8006-420e226a0548https://www.fool.com/legal/fool-disclosure-policy/https://www.fool.com/investing/2024/08/27/snowflake-dips-below-its-ipo-price-is-it-time-to-b/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=cb5db397-2ea4-4c87-8006-420e226a0548

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