Snowflake (NYSE: SNOW) is an intriguing but scary stock for many investors. Its lead in the data cloud and potential within that industry could drive massive returns over time. This value proposition earned an investment from Warren Buffett's team at Berkshire Hathaway before its IPO.

Even after a brutal bear market sell-off in 2022, the stock still sells for about 26 times sales, a level likely to put off investors except when in the midst of a bull market. But despite that concern, investors still have three compelling reasons to buy this SaaS stock.

Admittedly, the top cloud companies offer competing data cloud products. Snowflake's $60 billion market cap is a small fraction of their $1 trillion or more market caps, making it look like an insurmountable obstacle.

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Source Fool.com