In order to grow into this valuation, snowflake will need to become the biggest data warehouse company ever. They have a great product and that will probably happen! But you need to be highly confident of the best case scenario happening to buy at the current price.
Yeah, the article seems to be contradictory. First it says “even my Mum, who knows nothing about Snowflake, bought shares.” Then it gives complex technical analysis to explain why the share price is high. Um, I think the first explanation works better....
In general the article persuaded me that Snowflake is a great company. But without some maths relating all these numbers to an estimate of future revenue, there’s no way to tell if it’s a great stock — at the current price. It’s the same problem that Tesla bulls have.
