Is Snowflake (SNOW) Stock a Good Long-Term Bet?

Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 2.9% (Institutional Shares) compared to a 3.6% decline for the Russell 1000 Growth Index and a 4.9% decline for the S&P 500 Index. Holdings in Consumer Discretionary and Communication sectors contributed significantly to the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Snowflake Inc. (NYSE:SNOW) in its Q3 2022 investor letter. Headquartered in Bozeman, Montana, Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform provider. On November 22, 2022, Snowflake Inc. (NYSE:SNOW) stock closed at $143.36 per share. One-month return of Snowflake Inc. (NYSE:SNOW) was -16.15%, and its shares lost 58.27% of their value over the last 52 weeks. Snowflake Inc. (NYSE:SNOW) has a market capitalization of $45.875 billion.

Baron Funds made the following comment about Snowflake Inc. (NYSE:SNOW) in its Q3 2022 investor letter:

“Snowflake Inc. (NYSE:SNOW) provides a cloud platform for large-scale data analytics. Snowflake’s shares were up 22%, reacting positively to second quarter results that beat market forecasts with revenue growth of 83% year-over year and adjusted free-cash-flow margins of 12%. Record new customer additions and world-class dollar net retention of over 170% implied resiliency in demand despite increasing macro uncertainties. We remain shareholders and believe that Snowflake will be able to benefit from long-term growth with favorable unit economics, addressing one of the largest opportunities in technology. Snowflake’s culture of innovation (such as its expansion into cloud application development and data sharing), go-to-market initiatives, and an ongoing secular shift to the cloud in its end markets should help, in our view, sustain the company’s competitive moats over the long term.”

Photo by Science in HD on Unsplash

Snowflake Inc. (NYSE:SNOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Snowflake Inc. (NYSE:SNOW) at the end of the third quarter, which was 66 in the previous quarter.

We discussed Snowflake Inc. (NYSE:SNOW) in another article and discussed whether billionaire Jorge Paulo Lemann’s 3G Capital picked the right stocks in the third quarter of 2021. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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