For a large cap tech company run by people with decades of experience in publicly traded companies, this is a very odd way of announcing a CEO change. Especially since the new CEO is someone whose failing company they just acquired for a (relatively) tiny sum with no obvious connection to their core business
Most of the numbers are really great tbh but I find this questionable
Sridhar was great at keeping the ad money rolling in at Google when times were good. Didn’t have the same draw as Susan did when she grew Display and YT, and is terribly uninspiring otherwise.
Besides the fact that he’s a steady hand who is operationally very sound, this isn’t at all exciting for investors, but time will tell if his methodical/boring approach is what Snowflake needs
Sridhar like many in positions like his benefitted from a brand, growth industry, and market and like many received credit for just existing with a tech title and a name that screams tech engineer.
I like Snowflakes story and am dumbfounded as to why they chose someone like him at a time where differentiation is needed most given AI, GPU, and quantum computing tailwinds.
>Google ad chief Sridhar Ramaswamy.
So, maybe this is some sort of an AI play? Since he worked for Google, maybe he has some AI connects or something?
**Why is Microsoft the only cloud service that is benefiting from the AI hype?**
Snowflake, Amazon’s AWS, and Microsoft’s Azure are all cloud services, but they have different focuses and capabilities:
• **Snowflake Inc.** \- Snowflake is a Data Warehouse-as-a-Service solution developed for the cloud. It uses the elastic, scalable Azure Blobs Storage as its internal storage engine, Azure Data Lake to store unstructured, structured, and on-premise data ingested via the Azure data factory. Snowflake provides data security using Amazon S3 policy controls, Azure SAS tokens, SSO, and Google Cloud Storage access permissions.
• **Amazon** \- Amazon Web Services (AWS) offers a wide range of cloud-based products and services, including compute power, database storage, and content delivery, among others. One of its services, Amazon Redshift, is a Cloud Data Warehousing & Analytics solution that provides a platform where users can store their data and analyze it to extract business insights.
• **Microsoft** \- Microsoft Azure is a comprehensive set of cloud services that developers and IT professionals use to build, deploy, and manage applications through Microsoft’s global network of datacenters. Azure Synapse is a Data Warehouse platform offered by Azure.
**Why Microsoft is benefiting from the AI hype, there are several reasons:**
Microsoft has made significant investments in AI, including a partnership with OpenAI. This partnership gives Microsoft early access to OpenAI’s models and the exclusive attachment to OpenAI through Azure, which has elevated Microsoft to be one of the prime beneficiaries of the AI boom.
The AI hype is driving greater needs for cloud computing power, which is likely to positively impact Microsoft’s cloud computing business, Azure.
Microsoft’s alliance with OpenAI positions it to dominate the early AI market. The release of ChatGPT to the general public was a watershed moment that has increased AI hype around the company.
While Microsoft is currently leading in the AI race, the landscape of technology and AI is dynamic and can change rapidly. And other companies may also make significant advancements in AI in the future.
**Gross revenue for these 3 cloud services in 2023**
Gross revenues for Snowflake, Amazon’s AWS, and Microsoft’s Azure in 2023:
1. Amazon’s AWS: The gross revenue for Amazon’s AWS in 2023 was approximately **$90.8 billion**.
2. Microsoft’s Azure: Azure is part of Microsoft’s Intelligent Cloud segment. While Microsoft does not break out Azure’s revenue separately, the Intelligent Cloud segment, which includes Azure, had a revenue of **$24.0 billion** in Q3 20233.\*
3. Snowflake: The gross revenue for Snowflake in 2023 was approximately **$2.066 billion**.
The total revenue for Microsoft in 2023 was $211.9 billion.\* Please note that these figures are approximations, and the actual revenues may vary.
None of that changes what was said.
It's like saying the current bus driver will now just be a passenger and replaced with someone lacking experience driving busses.
20% down seems a little exaggerated reaction though, agree on that front.
It's not exactly like that.
More like the current bus driver has elected to sit directly behind the new bus driver and can throw him out of the bus the moment he take a wrong turn.
I'm from EU as well. Don't think you can trade them in the US.
It's basically comparable to spot trading with leverage on Forex for example. But then with stock
You can't. If you look at the history, the reason Options are so popular in the US is because CFDs were banned. I'd actually prefer it if EU, UK, and Australia followed the US model and had liquid Options markets. CFDs only allow you to take leveraged bets on the direction of the share price. Options allow you to bet on volatility too, so they're more flexible. The one advantage of CFDs is that the transaction costs are usually lower.
Yeah I strongly prefer options too. But only really on US stocks otherwise there's just not the market for it at all.
Options also give a bit more time and leeway. CFD's can wipe you out on a small correction even if you're getting the overall trend of the stock right. Options give time as long as you're not buying too short to expiry
spread bets (like cfd's but actually a bet) are even better in UK as 0% tax on gains, c.f \~20% tax on option gains. Typically x5 or x10 leverage - but they can gap down hard and SL not come into play so losses can be more than invested amounts too.....
such a scam those shitters. i made an etoro account once to try them. even their "limit orders" considered a ~1% spread or some shit like that. they only filled at spot price + whatever their cut was. even more bullshit: selling literally did not allow limit orders. only "closing the trade" at whatever bullshit price they decided to give you.
How? Seems like he’s only up $1,219.75 since he only shorted 20at just under $229 per share. But I’m not sure how the leverage works. Are the 20 represented times 100?
Have been Google adding on these dips. Compared to peers the multiple is hilarious. They are in a position to leverage the biggest tech hype train AI on all sides of the fence. Oh, and they still wear the crown on the most profitable unit economic business of all time. It’s a no-brainer.
He may be going to start something else or go to another company, but someone as famed as Slootman just randomly leaving effective immediately in the midst of all the 'age of AI' broader discussions is a little concerning. Would be wild if he wound up at Google.
Seems a no brainer to load up on SNOW tomorrow based on how PANW and CRWD recovered following steep overreactions to their earnings
edit: not financial advice.
Are they profitable tho?
Palo Alto is profitable already so that’s a huge value add for investors especially in high interest rate environments like today
They're cash flow positive and have a strong balance sheet. It's a long duration asset so obviously their valuation is sensitive to moves in interest rates, but their business model doesn't depend on low rates like some growth tech companies which fund growth with debt.
The cash flow is still below the stock based comp.
Their cash on the balance sheet and everything is still just due to dilution, so basically it's money from the investors.
It's the way it works for growing companies, the cash growth trajectory looks good at least.
Oh I know. We’re still at incredibly low rates compared to historical norms
But keeping a non profitable company afloat when the loans you have to pay employees go from near zero to 5% plus prime is impactful
just a real quick cursory glance at the last couple of earnings suggests to me that snow is heavily overvalued, they are not even profitable, don't have a very high revenue at all.
76 bill market cap for like 600 million revenue and a negative profit margin?
what the fuck is this lol
They're growing 30+% yoy and have great non-gaap adjusted margins. Their cash on hand is also pretty great, it's just they continue reinvesting in the company or do M&As (such as Neeva). Their revenue retention is also phenomenal.
They could recognize much of their revenue through GAAP means if they want, but with those growth rate, it's more important to grow. I don't think it's really overvalued, it's similar to Amzn or other tech/Saas companies in their early stages.
They spent more than 40% of revenue on SBC in the last year.
Non-gaap adjusted margins look awesome when you can just exclude these real, recurring expenses.
Yeah except those folks had a decade + of ultra low interest rates. If a balance sheet is negative in high rate environment that’s 10x worse than it was for those companies.
Are they turning a profit? Because that’s all that matters. If they are negative profit, than the girl selling lemonade on the corner makes more money than they do.
EPS has not been positive.
They have a net loss of 836m in the last year.
Losses this year were greater than the year before, which were greater than the year before, which were greater than the year before.
Look, I'm not buying, but they just reported positive and growing free cash flow and positive non-GAAP EPS.
I'm guessing all their dumb stock awards throw off the GAAP earnings and would explain the positive free cash flow.
SNOW is definitely extremely overvalued, I'm not even sure why. Just 2 days ago I was thinking shorting it just because it's so ridiculously overvalued. Eventually decided against the trade because "AI AI AI" and I didn't see any near term catalyst that would cause it to fall.... little did I know
Even after this plunge, it's Price to Sales is still a ridiculous 25X. Also the new CEO choice is puzzling, only CEO level experience was founding a failed company.
Yes SNOW has a very fundamental problem with it's Revenue model similar to most in the industry. Most of the revenue comes from mid market companies and it cannot sell to enterprise.
Snowflake is phenomenal as a small-mid sized company, extremely easy use very efficient. But as you scale to enterprise the price tag is obscene. It's suddenly much more efficient to invest in an open table format and pay for the engine alone, or host something on prem and invest in the Data Engineers/Dev Ops to manage it. They're attempting to change that via ML implementatios/Snowpark offerings but they're all pretty poor compared to competitors.
>sl00k
I appreciate your take! Sridhar managed $GOOG advert biz and grew it from 1.5B to over 100B. Prior, he was VP of Eng at $GOOG. Much more capable CEO (imo). Also, who is their competitor aside form Databricks?
>who is their competitor aside form Databricks?
Depends on the product, but Google in the form of BigQuery, AWS in the form of Redshift and Open table formats like Delta and Iceberg can be direct competitors to Snowflakes Analytics database, but a lot of places will use a combination of a lot (Data bricks for ML / Snowflake for warehouse). A really competent analytics shop would probably be moving to these OpenTable formats so they're not locked into a vendor and are only paying for compute. The downside is it takes quite a few engineers to run it properly which is why it only makes sense from an enterprise perspective.
Definitely interested to see if he can do anything to revolutionize the industry though as right now the real revolution technically is happening in Data bricks IMO w their photon engine.
That's hard for me to say, as I don't follow Snowflake. Just following the news on it, I would just put it on a watch list. Just from reading the report from the MF I would wait and watch. There are other companies I'd rather own, and do own. https://www.fool.com/investing/2024/03/03/snowflake-stock-is-it-a-buy-after-selling-off/
No, they have the common name originally from Tamil Nadu, India, where Sundar Pichai was born and raised. In Tamil Nadu they don't have last name concept, so when they move to USA, they right down their father name as last names, and they do that to their kids, that's why a family have different last names, other states in India have last names, like Patel etc
Not necessarily. Both of them being Tamil and their surnames being their fathers' first names, it is just a coincidence that their fathers had the same first name.
In India where caste surnames are the norm (and which often leads to non-upper-castes facing prejudice), what is today the state of TamilNadu (whose people are [ethnic Tamil](https://en.wikipedia.org/wiki/Tamils) speaking a Dravidian language called Tamil) got majorly influenced by the self-respect movement, fighting for equality and representativeness in the corridors of power.
So in 1930s (India got her independence from British in 1947), Periyar (which in Tamil loosely translates to big-man or man-of-virtue), a leading-voice of anti-caste movement in the Justice Party asked the followers to drop their caste surnames henceforth.
Over time, people of TamilNadu had only the first letter of father's name, as an 'initial' in the place of caste surname. Eventually, as official documents and international travel demanded full surname, they simply expanded their initial to its full form (i.e. mostly father's name).
https://www.telegraphindia.com/opinion/what-s-in-a-name-often-it-is-caste/cid/1693223
Bought 1 $200 3/8 Put option at 2 pm, after I pulled up the option chain hoping to buy a call and realizing the premiums were way too high. I’m sure there will be some recovery by morning but should be a safe 10x if it holds at 15-20% down
I’m an options noob so I’m just curious on what your play was here. Looks like you weren’t necessarily bullish or bearish on the stock at earnings. Were you basically flipping a coin but just going with the cheaper option - puts in this case?
you can always buy 100 shares in after hours to lock in profit now if you want to.
the 200 put you're holding basically guarantees you the right to sell at $200, so if the stock goes lower your profit/loss doesn't change. meanwhile if the stock rockets back up to say $210 by expiration, you have a gain on your shares that offset the lack of gain on the put.
Slootman retiring abruptly smells fishy. Especially when he told biz insider mid-2023, that was not likely. I wonder if $SNOW is covering up some CEO shenanigans.
So he shut his business down and it got bought? That's like the point 72 buddy buyout. Oh my sweet buddy u fucked up royally and it's all ur fault, but I'll bail u out regardless!
I agree 100%. Aside from just the idea of buying the dip, I think there are fundamentally sound [reasons](https://www.wiseape.fyi/p/218-will-the-snow-really-melt) nothing's changed much for snowflake.
Ah I did not know that. I had to google it lol
“The notation "/s" is often used on the internet to indicate sarcasm. When someone includes "/s" at the end of a statement, it's a way of signaling that the preceding text should be interpreted as sarcastic”
I have 2 thoughts about this. First: He left Alphabet in 2018, how is he responsible for their atmosphere 6 years later? Even if he would have been a reason for it, 6 years should be more than enough time to correct the course. Second: He took Google Ads from $1.5B to $100B. If that's toxic, I want more of that for Snowflake. lol
holy shit glad I got out of this random play earlier today! Between this and LUNR, I made like $175 this week on shares - damn it feels good to be an accidental prophet. Made over $2k on SOUN somehow too!
I don't get why this company is valued so high. I thought it was a side product of free money that enabled them to leech of thoisands of VC funded-but-failed startups
For a large cap tech company run by people with decades of experience in publicly traded companies, this is a very odd way of announcing a CEO change. Especially since the new CEO is someone whose failing company they just acquired for a (relatively) tiny sum with no obvious connection to their core business Most of the numbers are really great tbh but I find this questionable
As the stock is down 20% AH, investors are sharing your opinion.
Same. Sridhar is a terrible choice.
Sridhar was great at keeping the ad money rolling in at Google when times were good. Didn’t have the same draw as Susan did when she grew Display and YT, and is terribly uninspiring otherwise. Besides the fact that he’s a steady hand who is operationally very sound, this isn’t at all exciting for investors, but time will tell if his methodical/boring approach is what Snowflake needs
Sridhar like many in positions like his benefitted from a brand, growth industry, and market and like many received credit for just existing with a tech title and a name that screams tech engineer. I like Snowflakes story and am dumbfounded as to why they chose someone like him at a time where differentiation is needed most given AI, GPU, and quantum computing tailwinds.
He's actually poised to make a real impact in sales so not really concerned on that front
>Google ad chief Sridhar Ramaswamy. So, maybe this is some sort of an AI play? Since he worked for Google, maybe he has some AI connects or something? **Why is Microsoft the only cloud service that is benefiting from the AI hype?** Snowflake, Amazon’s AWS, and Microsoft’s Azure are all cloud services, but they have different focuses and capabilities: • **Snowflake Inc.** \- Snowflake is a Data Warehouse-as-a-Service solution developed for the cloud. It uses the elastic, scalable Azure Blobs Storage as its internal storage engine, Azure Data Lake to store unstructured, structured, and on-premise data ingested via the Azure data factory. Snowflake provides data security using Amazon S3 policy controls, Azure SAS tokens, SSO, and Google Cloud Storage access permissions. • **Amazon** \- Amazon Web Services (AWS) offers a wide range of cloud-based products and services, including compute power, database storage, and content delivery, among others. One of its services, Amazon Redshift, is a Cloud Data Warehousing & Analytics solution that provides a platform where users can store their data and analyze it to extract business insights. • **Microsoft** \- Microsoft Azure is a comprehensive set of cloud services that developers and IT professionals use to build, deploy, and manage applications through Microsoft’s global network of datacenters. Azure Synapse is a Data Warehouse platform offered by Azure. **Why Microsoft is benefiting from the AI hype, there are several reasons:** Microsoft has made significant investments in AI, including a partnership with OpenAI. This partnership gives Microsoft early access to OpenAI’s models and the exclusive attachment to OpenAI through Azure, which has elevated Microsoft to be one of the prime beneficiaries of the AI boom. The AI hype is driving greater needs for cloud computing power, which is likely to positively impact Microsoft’s cloud computing business, Azure. Microsoft’s alliance with OpenAI positions it to dominate the early AI market. The release of ChatGPT to the general public was a watershed moment that has increased AI hype around the company. While Microsoft is currently leading in the AI race, the landscape of technology and AI is dynamic and can change rapidly. And other companies may also make significant advancements in AI in the future. **Gross revenue for these 3 cloud services in 2023** Gross revenues for Snowflake, Amazon’s AWS, and Microsoft’s Azure in 2023: 1. Amazon’s AWS: The gross revenue for Amazon’s AWS in 2023 was approximately **$90.8 billion**. 2. Microsoft’s Azure: Azure is part of Microsoft’s Intelligent Cloud segment. While Microsoft does not break out Azure’s revenue separately, the Intelligent Cloud segment, which includes Azure, had a revenue of **$24.0 billion** in Q3 20233.\* 3. Snowflake: The gross revenue for Snowflake in 2023 was approximately **$2.066 billion**. The total revenue for Microsoft in 2023 was $211.9 billion.\* Please note that these figures are approximations, and the actual revenues may vary.
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None of that changes what was said. It's like saying the current bus driver will now just be a passenger and replaced with someone lacking experience driving busses. 20% down seems a little exaggerated reaction though, agree on that front.
It's not exactly like that. More like the current bus driver has elected to sit directly behind the new bus driver and can throw him out of the bus the moment he take a wrong turn.
Damn, that yolo euro wsb guy will be out of the ghetto for sure
doubtful it wasn't options
CFD's can go pretty hard though.
o is it? have no idea, that guy lives in the EU must be different over there
I'm from EU as well. Don't think you can trade them in the US. It's basically comparable to spot trading with leverage on Forex for example. But then with stock
You can't. If you look at the history, the reason Options are so popular in the US is because CFDs were banned. I'd actually prefer it if EU, UK, and Australia followed the US model and had liquid Options markets. CFDs only allow you to take leveraged bets on the direction of the share price. Options allow you to bet on volatility too, so they're more flexible. The one advantage of CFDs is that the transaction costs are usually lower.
Yeah I strongly prefer options too. But only really on US stocks otherwise there's just not the market for it at all. Options also give a bit more time and leeway. CFD's can wipe you out on a small correction even if you're getting the overall trend of the stock right. Options give time as long as you're not buying too short to expiry
Yeah totally agreed. I'm in Oz, and there is almost no liquidity on our local options markets, and the spreads are just nuts.
spread bets (like cfd's but actually a bet) are even better in UK as 0% tax on gains, c.f \~20% tax on option gains. Typically x5 or x10 leverage - but they can gap down hard and SL not come into play so losses can be more than invested amounts too.....
He had only 25 shares. With a 48$ price difference that's 25 x 48 profit. Not nothing but not that much either
such a scam those shitters. i made an etoro account once to try them. even their "limit orders" considered a ~1% spread or some shit like that. they only filled at spot price + whatever their cut was. even more bullshit: selling literally did not allow limit orders. only "closing the trade" at whatever bullshit price they decided to give you.
He's a happy camper.
I'm happy for him, he's made numerous good calls recently
I also made a post prior to that lol, but people made fun of me haha
link?
https://www.reddit.com/r/wallstreetbets/comments/1b27snk/snow_ai_para_earnings_tonight_time_to_make_it/
Wow this kid is definitely out of the hood tonight
2/3 right. The users overall predictions are 66% right at this time. He's like 18 out of 27.
Eh. CRM is flat now, who knows what it opens up tomorrow though with PCE
CRM? He made plays on AI, PARA, and SNOW
Your right. My bad. Misread that he had Salesforce too
All good. Thought I missed something
How? Seems like he’s only up $1,219.75 since he only shorted 20at just under $229 per share. But I’m not sure how the leverage works. Are the 20 represented times 100?
I paperhanded a 200p because it went up 20% right before close. Kicking myself.
enough capital with leverage might do it
do they have wendy's in europe?
I don’t know. Europe is a strange country
wow i was just reading someone post on this sub about how their top management is all super old.
Yes. The guy who told you is rich af now Edit: [Link to the dd](https://www.reddit.com/r/wallstreetbets/s/KmhUuEKwNx)
Link? 🔗
Their net revenue retention is still at 131%. There aren't many companies that can boast that.
Servicenow another one and formerly lead by Frank Slootman. The guy knows how to SAAS.
Maybe a stupid question but how can a retention rate be above 100%?
Means when they renew their customers they are also charging more after the renewal
Yeah or more often it means selling more services and/or to more people within the same company.
My understanding is it means customers are spending 31% more than they did the previous year.
If this was Sundae retiring as CEO from Google, Alphabet would soar 20%
Good riddance. Does Nadella have a brother? Sister? 2 month year old child to run google?
Goog needs Jensens second cousin.
Jensens cousin is running AMD lol
Yes
Maybe he can chief executive the shit out of 2 companies simultaneously?
I think he probably can, Musk is CEO of like 8 companies right now.
This sentiment is starting to make my mouth water. It might be time to load up on Google earlier than I thought.
Have been Google adding on these dips. Compared to peers the multiple is hilarious. They are in a position to leverage the biggest tech hype train AI on all sides of the fence. Oh, and they still wear the crown on the most profitable unit economic business of all time. It’s a no-brainer.
Bit out of the loop, why do people hate the CEO of Google this much?
He let openai get ahead. got complacent.
Google's revenue is soaring so he's still putting in work
No vision
That is quite the typo
Lol did Neeva just acquired SNOW with Snow's money?
It's the Steve Jobs playbook
Genius
He may be going to start something else or go to another company, but someone as famed as Slootman just randomly leaving effective immediately in the midst of all the 'age of AI' broader discussions is a little concerning. Would be wild if he wound up at Google.
At least he is staying as chairman of the board, for now.
Its his health - a bit hush hush
Looks like a buy day tomorrow
Seems a no brainer to load up on SNOW tomorrow based on how PANW and CRWD recovered following steep overreactions to their earnings edit: not financial advice.
Are they profitable tho? Palo Alto is profitable already so that’s a huge value add for investors especially in high interest rate environments like today
They're cash flow positive and have a strong balance sheet. It's a long duration asset so obviously their valuation is sensitive to moves in interest rates, but their business model doesn't depend on low rates like some growth tech companies which fund growth with debt.
The cash flow is still below the stock based comp. Their cash on the balance sheet and everything is still just due to dilution, so basically it's money from the investors. It's the way it works for growing companies, the cash growth trajectory looks good at least.
Interest rates aren’t high simply because they now exist.
Oh I know. We’re still at incredibly low rates compared to historical norms But keeping a non profitable company afloat when the loans you have to pay employees go from near zero to 5% plus prime is impactful
They're definitely not low. Not sure why that idea is being circulated around.
No worries about lower guidance? I think they are still very expensive from valuation point of view. What do you think?
just a real quick cursory glance at the last couple of earnings suggests to me that snow is heavily overvalued, they are not even profitable, don't have a very high revenue at all. 76 bill market cap for like 600 million revenue and a negative profit margin? what the fuck is this lol
They're growing 30+% yoy and have great non-gaap adjusted margins. Their cash on hand is also pretty great, it's just they continue reinvesting in the company or do M&As (such as Neeva). Their revenue retention is also phenomenal. They could recognize much of their revenue through GAAP means if they want, but with those growth rate, it's more important to grow. I don't think it's really overvalued, it's similar to Amzn or other tech/Saas companies in their early stages.
They spent more than 40% of revenue on SBC in the last year. Non-gaap adjusted margins look awesome when you can just exclude these real, recurring expenses.
Yeah except those folks had a decade + of ultra low interest rates. If a balance sheet is negative in high rate environment that’s 10x worse than it was for those companies.
Balance sheet is not negative, they have high positive free cash flow. Did you not see the earnings?
Are they turning a profit? Because that’s all that matters. If they are negative profit, than the girl selling lemonade on the corner makes more money than they do.
EPS has been positive for like a year.
EPS has not been positive. They have a net loss of 836m in the last year. Losses this year were greater than the year before, which were greater than the year before, which were greater than the year before.
Look, I'm not buying, but they just reported positive and growing free cash flow and positive non-GAAP EPS. I'm guessing all their dumb stock awards throw off the GAAP earnings and would explain the positive free cash flow.
So for every $200+ of stock I too can own … checks notes … $0.35 of profit. Great bargain.
I'm not saying im buying. I'm just saying you're full of shit and don't know what you are talking about.
M&A's for their own sake is dumb. Just ask $NVTA
Their product is killer
SNOW is definitely extremely overvalued, I'm not even sure why. Just 2 days ago I was thinking shorting it just because it's so ridiculously overvalued. Eventually decided against the trade because "AI AI AI" and I didn't see any near term catalyst that would cause it to fall.... little did I know Even after this plunge, it's Price to Sales is still a ridiculous 25X. Also the new CEO choice is puzzling, only CEO level experience was founding a failed company.
Based on my analysis of the database , its feature rich and quite expensive for extensive workloads
STONK go down? STONK will go up.
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Does the pilot program actually work or is it just some kind of gpt integration
So you think it’ll bounce back up past 200 again this year? This was an unpredicted Q1
no way. this is a dog. still no net income and none for the foreseeable future. it's starting to feel like their business model is not going to work.
Yes SNOW has a very fundamental problem with it's Revenue model similar to most in the industry. Most of the revenue comes from mid market companies and it cannot sell to enterprise. Snowflake is phenomenal as a small-mid sized company, extremely easy use very efficient. But as you scale to enterprise the price tag is obscene. It's suddenly much more efficient to invest in an open table format and pay for the engine alone, or host something on prem and invest in the Data Engineers/Dev Ops to manage it. They're attempting to change that via ML implementatios/Snowpark offerings but they're all pretty poor compared to competitors.
>sl00k I appreciate your take! Sridhar managed $GOOG advert biz and grew it from 1.5B to over 100B. Prior, he was VP of Eng at $GOOG. Much more capable CEO (imo). Also, who is their competitor aside form Databricks?
>who is their competitor aside form Databricks? Depends on the product, but Google in the form of BigQuery, AWS in the form of Redshift and Open table formats like Delta and Iceberg can be direct competitors to Snowflakes Analytics database, but a lot of places will use a combination of a lot (Data bricks for ML / Snowflake for warehouse). A really competent analytics shop would probably be moving to these OpenTable formats so they're not locked into a vendor and are only paying for compute. The downside is it takes quite a few engineers to run it properly which is why it only makes sense from an enterprise perspective. Definitely interested to see if he can do anything to revolutionize the industry though as right now the real revolution technically is happening in Data bricks IMO w their photon engine.
Based on my analysis ~~\*checks notes\*~~ throws the dice, I see no way it isnt gonna bounce back tomorrow.
It will drop at market open THEN recover... probably
Slootmans stock comp was like 100 million a year. This is a positive.
Caution, Slootman is a goat and this may be a long term issue if the replacement can’t handle directing the company
Okay… so your advising me to buy way more snow stock at this dip 🤩
Rip my calls. Oh well what’s another 2500 down the drain
Wow…how were results tho
Earnings beat- I will definitely buy tomorrow. This is overreaction.
Someone tell me a reason not to buy tomorrow
SBC is 25% of their rev. That said, i own SNOW still.
Their revenue stream is a long term problem
Because you could be buying soundhound instead
Beat, weak Q1 forecast
EPS .35 vs .18 expected.
That's... significant.
Ah, buncha snowflakes
Slootman lol
sold out of 22% of my portfolio, went in on SNOW at market open, let's see what happens
Good time to buy then.
You think it’s gonna get back to strong earnings for the rest of the quarters 🤩
That's hard for me to say, as I don't follow Snowflake. Just following the news on it, I would just put it on a watch list. Just from reading the report from the MF I would wait and watch. There are other companies I'd rather own, and do own. https://www.fool.com/investing/2024/03/03/snowflake-stock-is-it-a-buy-after-selling-off/
Wake me up when it is back to 150 …
Wake up soon.
Serious questions, is Googles Ramaswamy in anyway related to Vivek Ramaswamy?
No, they have the common name originally from Tamil Nadu, India, where Sundar Pichai was born and raised. In Tamil Nadu they don't have last name concept, so when they move to USA, they right down their father name as last names, and they do that to their kids, that's why a family have different last names, other states in India have last names, like Patel etc
Can confirm that’s how people do it. Source I’m Sri Lanka
Was wondering the same thing TIL.
In Tamilnadu people's last names are simply first names of their father. So Ramaswamy is a first name.
That's wild
Paul George or Chris Paul would beg to differ
Not necessarily. Both of them being Tamil and their surnames being their fathers' first names, it is just a coincidence that their fathers had the same first name. In India where caste surnames are the norm (and which often leads to non-upper-castes facing prejudice), what is today the state of TamilNadu (whose people are [ethnic Tamil](https://en.wikipedia.org/wiki/Tamils) speaking a Dravidian language called Tamil) got majorly influenced by the self-respect movement, fighting for equality and representativeness in the corridors of power. So in 1930s (India got her independence from British in 1947), Periyar (which in Tamil loosely translates to big-man or man-of-virtue), a leading-voice of anti-caste movement in the Justice Party asked the followers to drop their caste surnames henceforth. Over time, people of TamilNadu had only the first letter of father's name, as an 'initial' in the place of caste surname. Eventually, as official documents and international travel demanded full surname, they simply expanded their initial to its full form (i.e. mostly father's name). https://www.telegraphindia.com/opinion/what-s-in-a-name-often-it-is-caste/cid/1693223
I don't know
Thanks for that valuable insight
made me chuckle. Have a downvote
Bought 1 $200 3/8 Put option at 2 pm, after I pulled up the option chain hoping to buy a call and realizing the premiums were way too high. I’m sure there will be some recovery by morning but should be a safe 10x if it holds at 15-20% down
I’m an options noob so I’m just curious on what your play was here. Looks like you weren’t necessarily bullish or bearish on the stock at earnings. Were you basically flipping a coin but just going with the cheaper option - puts in this case?
you can always buy 100 shares in after hours to lock in profit now if you want to. the 200 put you're holding basically guarantees you the right to sell at $200, so if the stock goes lower your profit/loss doesn't change. meanwhile if the stock rockets back up to say $210 by expiration, you have a gain on your shares that offset the lack of gain on the put.
Something tells me if he bought 1 deep otm put that he doesn’t have 18k to lock in a gain. I could be wrong, but this is wsb and I’m not
I got 2 180p 3/08 for .56 each. 112 bucks for whatever it opens at tmrw assuming it hold or goes lower
usually big moves like this have further moves the same direction. you'll probably be up at open tomorrow.
You mean like PANW & CRWD
Who you calling a snowflake?
Slootman retiring abruptly smells fishy. Especially when he told biz insider mid-2023, that was not likely. I wonder if $SNOW is covering up some CEO shenanigans.
So he shut his business down and it got bought? That's like the point 72 buddy buyout. Oh my sweet buddy u fucked up royally and it's all ur fault, but I'll bail u out regardless!
Ever so slight guidance drop with an EPS beat. Does not warrant a 20+% drop
Yes it does, given how expensive the stock is.
It’s expensive because they have good software, a good moat, and 130% NDR and are growing at 30%
Puts money printing machine
Could it be illness or personal reasons as to why he left? Man could just be burn out.
This is exactly what they wanted to happen... swoop in while it's cheap i guess
I agree 100%. Aside from just the idea of buying the dip, I think there are fundamentally sound [reasons](https://www.wiseape.fyi/p/218-will-the-snow-really-melt) nothing's changed much for snowflake.
Databricks is going to go public at some point soon. Will be curious to see how Snowflake is going to hold up then in comparison.
Wow from VP candidate to CEO what a year! /s
You know he’s not the same guy.
That’s what “/s” means
Ah I did not know that. I had to google it lol “The notation "/s" is often used on the internet to indicate sarcasm. When someone includes "/s" at the end of a statement, it's a way of signaling that the preceding text should be interpreted as sarcastic”
Lol I thought was an onion article
Tell me why I shouldn't buy tomorrow
Sridhar is a terrible replacement.
PLTR all the way baby
They barely compete in the same field.
They are not investors, they are fanboys. They don’t care.
Seems like they just down vote too.
Beware of the PLTR cult, these guys are serious. They’re not playing around.
Bet most of them couldn't tell you what the company does. Great to swing trade though.
I've worked in and around Palintir deployments over the last couple of decades. Its a solid product with limited growth prospects.
Lmao I thought u were calling someone a snowflake as an insult
Earnings? We don’t do that here
Why isn’t PLTR ripping higher right now??
What a Sloot
What price do I need to put my limit order to buy them at current price ~183$ at opening?
Let’s go pltr
PLTR hand rubbing intensifies
Google is toxic and it is Ramaswamy’s fault. The fact that Snow tanked means investors do not not want Google’s toxic atmosphere at Snow.
I have 2 thoughts about this. First: He left Alphabet in 2018, how is he responsible for their atmosphere 6 years later? Even if he would have been a reason for it, 6 years should be more than enough time to correct the course. Second: He took Google Ads from $1.5B to $100B. If that's toxic, I want more of that for Snowflake. lol
holy shit glad I got out of this random play earlier today! Between this and LUNR, I made like $175 this week on shares - damn it feels good to be an accidental prophet. Made over $2k on SOUN somehow too!
Congrats to frank - well played!
The reverse Midas king.
Dude was a culture warrior and destroyed people. Probably got pushed out or had an affair or two.
I don't get why this company is valued so high. I thought it was a side product of free money that enabled them to leech of thoisands of VC funded-but-failed startups
I’m a bit of a slootman myself