Light Street Capital Management LLC Makes New Investment in Snowflake Inc. $SNOW

Key Points

• Light Street Capital Management opened a new Snowflake position, purchasing 70,000 shares valued at approximately $17.8 million. Institutional investors collectively own 65.1% of the company.
• Snowflake reported stronger-than-expected results, with quarterly revenue of $1.55 billion, up 35.1% year over year, and adjusted EPS of $0.62 versus the $0.45 consensus estimate. AI adoption and raised guidance are supporting favorable analyst sentiment, with a consensus “Moderate Buy” rating.
• Valuation and insider selling remain risks: the stock trades at an elevated earnings multiple, while insiders sold roughly 1.13 million shares worth $317.3 million over the past 90 days.

Light Street Capital Management LLC acquired a new position in shares of Snowflake Inc. (NYSE:SNOW - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 70,000 shares of the company's stock, valued at approximately $17,815,000. Snowflake accounts for about 2.0% of Light Street Capital Management LLC's holdings, making the stock its 18th biggest position.

Several other hedge funds also recently modified their holdings of SNOW. California State Teachers Retirement System grew its holdings in Snowflake by 25,944.6% in the second quarter. California State Teachers Retirement System now owns 127,340,602 shares of the company's stock worth $32,408,183,000 after purchasing an additional 126,851,670 shares during the period. Norges Bank acquired a new position in shares of Snowflake during the fourth quarter valued at about $974,091,000. Jericho Capital Asset Management L.P. acquired a new position in shares of Snowflake during the fourth quarter valued at about $345,619,000. William Blair Investment Management LLC boosted its position in shares of Snowflake by 159.9% during the 4th quarter. William Blair Investment Management LLC now owns 1,346,998 shares of the company's stock worth $295,477,000 after purchasing an additional 828,789 shares in the last quarter. Finally, Pictet Asset Management Holding SA grew its stake in shares of Snowflake by 44.7% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,600,571 shares of the company's stock valued at $392,259,000 after buying an additional 803,110 shares during the period. Institutional investors own 65.10% of the company's stock.

Snowflake News Roundup

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: AI-driven growth is strengthening. Snowflake’s AI Data Cloud is gaining traction with enterprises, while product revenue increased 37%. The company is expanding its cloud analytics capabilities and positioning itself as a competitor to larger providers such as Oracle and Dell Technologies. Snowflake Expands AI Strategy as Revenue Tops US$1.49bn
• Positive Sentiment: Results and guidance have supported the stock. Recent earnings exceeded expectations, with revenue of approximately $1.55 billion versus a $1.48 billion consensus estimate and adjusted EPS of $0.62 versus $0.45 expected. Management also raised guidance, reinforcing the view that AI workloads are translating into higher consumption and revenue. Snowflake Stock Surges 17% After Earnings
• Positive Sentiment: Investor and analyst sentiment remains favorable. Wall Street’s average recommendation is equivalent to a Buy, and Snowflake was among the software companies that helped revive investor enthusiasm for AI-related software after earnings. Wall Street Bulls Look Optimistic About Snowflake
• Neutral Sentiment: Management’s conference presentation is the next catalyst. Snowflake’s appearance at the Goldman Sachs Communacopia + Technology Conference gives investors an opportunity to assess commentary on AI adoption, enterprise demand, consumption trends and future guidance. Snowflake Goldman Sachs Conference Transcript
• Negative Sentiment: Valuation is a major risk. Following the rally, Snowflake reportedly trades at roughly 152 times expected fiscal 2027 earnings. That premium leaves the stock vulnerable to a pullback if growth, guidance or AI monetization falls short of elevated expectations. Snowflake’s Growth Is Accelerating. So Is the Valuation Risk

Snowflake Stock Down 0.7%

Snowflake stock traded down $2.32 during trading on Tuesday, hitting $334.86. 5,282,759 shares of the company were exchanged, compared to its average volume of 6,847,064. The company has a market capitalization of $116.06 billion, a P/E ratio of -105.30 and a beta of 1.33. The business's 50 day moving average is $299.42 and its 200 day moving average is $221.73. Snowflake Inc. has a 52 week low of $118.30 and a 52 week high of $384.56. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 1.18.

Snowflake (NYSE:SNOW - Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.17. Snowflake had a negative return on equity of 47.20% and a negative net margin of 20.07%.The business had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.48 billion. During the same period last year, the business earned $0.35 EPS. The business's revenue was up 35.1% on a year-over-year basis. Analysts predict that Snowflake Inc. will post -1.8 earnings per share for the current year.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Canaccord Genuity Group upped their price target on Snowflake from $325.00 to $450.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. Wedbush boosted their price objective on Snowflake from $270.00 to $280.00 and gave the company an "outperform" rating in a report on Thursday, May 28th. Stifel Nicolaus upped their target price on Snowflake from $350.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Robert W. Baird set a $450.00 price target on shares of Snowflake in a research note on Thursday, September 3rd. Finally, Benchmark raised their price objective on shares of Snowflake from $290.00 to $360.00 and gave the company a "buy" rating in a research note on Tuesday, August 25th. Thirty-four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $414.24.

Insiders Place Their Bets

In other news, Director Frank Slootman sold 48,990 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $320.78, for a total value of $15,715,012.20. Following the transaction, the director owned 28,535 shares in the company, valued at $9,153,457.30. The trade was a 63.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christian Kleinerman sold 10,000 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $380.00, for a total value of $3,800,000.00. Following the sale, the executive vice president directly owned 18,568 shares of the company's stock, valued at $7,055,840. The trade was a 35.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,128,431 shares of company stock valued at $317,314,470. Corporate insiders own 4.80% of the company's stock.

Snowflake Company Profile

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.

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