This is a lackluster quarter for Snowflake

Buy the dip
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   May 25, 2023

Snowflake's earnings result is pretty lackluster. On one hand they're still growing in most metrics like headcount or revenue or user base, but on the other hand we can see numbers like RPO or retentions start to drop.

Those could be leading metrics that tells you that maybe you don’t need them as much, possibly because of the economy, or the banking issues, or even because of competition from Databricks or Microsoft.

How is this only down 10% in the after-hour trading when the p/s is still at an astronomical 25. This market makes very little sense really.

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By the way they're still a company that can print cash much faster than many other tech companies. If it gets a lot lower you should still have good trading opportunities here. But at the moment the valuation is still quite rich even after the huge drop.

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I remain optimistic about Snowflake long term but would stay cautious in the short term. $snow

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SNOW stock company logo - Snowflake Inc
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