1 Huge Trend That Will Drive Snowflake's Future Results
Although Snowflake (NYSE: SNOW) is one of the fastest-growing companies in the market, it's also unprofitable -- a bad trait to have in this turbulent economy. Unfortunately, rising interest rates are like kryptonite to high-growth, unprofitable stocks. And once the market anticipated the Federal Reserve would raise interest rates, unprofitable cloud stocks like Snowflake dropped like a rock.
But despite the poor stock performance in the short term, this company's long-term performance depends on other factors. Here's one trend that should drive Snowflake's long-term results.
Technological improvements in artificial intelligence and cloud computing have recently made it possible to use the vast volumes of information that companies collect to make critical decisions about the future -- a revolutionary development. As a result, more and more companies are becoming data-driven, using data to make a wide variety of business decisions, rapidly changing the way executives and managers, who use intuition, gut feelings, or anecdotal information to make these decisions, operate.
Source Fool.com
