Is Snowflake a Good Investment?

PHOTO CREDIT: Snowflake

OVERVIEW

Snowflake Incorporation is a company based in the United States. The company offers cloud-based data storage, computing, and management software to customers around the world. The company was founded in 2012.

Why You Should?

  1. Snowflake is a great growth play in an investor’s portfolio. The cloud industry has continued to post strong double (if not triple-digit) growth due to the modernizing economy and the importance of cloud computing and data. Snowflake will continue to report strong growth along with the rest of the cloud industry.

Why You Should Not?

  1. The company faces tough competition in the cloud industry. Some of these companies include Google, Microsoft, Amazon, CrowdStrike, and many others. This competition might hurt the company and its investors in the future.

MY OPINION

I think that Snowflake is a decent long-term investment due to its position as a good growth play, its profitability in the long term, and its position as the largest IPO in the world. However, tough competition, an expensive stock price, a loss-making business, as well as a volatile stock might hurt the company and its investors in the short to mid-term.