Technology
Cloud-based data warehousing company enabling data storage, processing, and analytics.
View forensic reportSnowflake, Datadog, and Cloudflare sit at the centre of the broadening software rally identified on 17 April. Each has a distinct setup, but the common thread is a free cash flow inflection that consensus has only partially recognised.
Revenue reaccelerated to 34% growth and AI consumption is scaling, but Databricks competition and elevated stock-based compensation have lowered our conviction.
Net retention has stabilised, AI workloads are inflecting at 300% growth, FCF margins hit 25%, and the CEO transition is behind it. The four biggest bear arguments are weakening.
At 85x forward earnings, Snowflake looks expensive until you model Cortex AI driving 40-50% consumption uplift and accelerating the path to $10B in revenue by FY2028.