1 Big Risk for Snowflake Stock (and How Snowflake Could Overcome It)
Though data cloud specialist Snowflake's (NYSE: SNOW) stock, with a year-to-date return of 4%, has drastically underperformed the Nasdaq Composite in 2023, there's still substantial downside risk for the stock ahead. This main risk to the stock price is quite simple: The company's revenue growth could disappoint -- particularly next year. Snowflake's year-over-year growth rates are trending downward at an alarming rate. If this persists, analysts' estimates for next year's top-line growth could be a bit too optimistic.
Despite this risk, I do think analysts are right to expect top-line growth to stop decelerating soon.
How could Snowflake's top-line growth disappoint?
Source Fool.com
