Data Intelligence Snowflake vs Databricks
Databricks has been gaining market share and growing exponentially while Snowflake revenue growth has fallen off a cliff. The bubble has burst for $SNOW and the narrative has completely been reversed. Large investors has been exiting their positions including Warren Buffett. It seems like the company is failing and is on the trajectory to continuous decline.
However, contrary to that, data is crucial to artificial intelligence and there is room more than 2 tech giants in the space. The biggest risk to look at would the Stock-based compensation as they have been paying For instance, in the second quarter of fiscal year 2025, the company reported a net loss of $317 million, largely attributed to high stock-based compensation (SBC) costs, which accounted for approximately 43% of its revenue. Snowflake is a great business with the opportunity to revive the business with the new CEO Sridhar Ramaswamy but there needs to be reacceleration of Revenue growth and get (SBC) under control.
Right now, I'm closing in on a small position on Snowflake between the price of $108 - $116. As I'm not convinced that the business will improve under the new CEO, I'll be doing trades in order to familiarize with prize movements and continue monitoring the quarterly earnings. Do share your thoughts as well!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Look at my analysis back then regarding data storage. Unfortunately i was under exposed for this rally 😔