Avoid this Trendy Stock No Matter What
Snowflake (NYSE: SNOW) was arguably the trendiest tech stock of 2020. It went public in September as the largest software IPO in history, attracted big investments from Warren Buffett's Berkshire Hathaway and salesforce.com, and doubled in value on the first day.
It's easy to see why investors fell in love with Snowflake. Its revenue surged 174% in fiscal 2020 and rose another 133% to $242 million in the first half of fiscal 2021. It boasted a net retention rate of 158% over the past six months -- the highest retention rate for any cloud software company at the time of its public debut.
Snowflake's technology is also disruptive. Its core service pulls all of a company's data onto a central cloud-based platform, where it can analyzed and fed into third-party data visualization software. That solution, which is easier to scale than on-premises data warehousing services, helped companies break down restrictive silos and streamline their businesses.
Source Fool.com
